Apple Computers and Microsoft have always being in the race of becoming the number two company of America. Several times Apple has surpassed Microsoft and visa versa. But now with Apple’s stock ending on a super high after the launch of iPad, it is for sure that Apple will stay ahead of Microsoft for a long time.
Few months back, Apple first surpassed Wal-Mart to become the third largest company in terms of market capital in America. With the ever increasing stock value Apple surpassed Microsoft too recently. Microsoft was over $50 billion ahead of Apple in market capital during the month of March. This difference was huge, but it was still the nearest the two firms had ever come in terms of market capital, and this happened for the first time in twenty years. Although there have been fluctuations every second, but for the records Apple is still ahead of Microsoft.
Market capitalization is a very popular mode of measurement and is often used to assess the size of a firm. It is also used as a representation of the investing public’s notion of the company’s worth. The sum is obtained when the number of left out shares of a firm are multiplied by the stock share price of the firm.
Apple, a company which was founded by Steve Wozniak and Steve Jobs, and a number of venture capitalist never negotiated in terms of quality, so its products were always priced higher than many other products produced by other companies. The same company, whose board of directors exiled, Steve Jobs had to bring in him again when the company was on the brink of bankruptcy. Then with a number of innovative product launches like iPhone, iPad, iPod and Mac notebooks, the company came back into business. The company flourished and produced several products for its customers. The products were of the best quality and supreme in its league.
These launches increased the share prices of Apple, while on the same time Microsoft was losing on its launches and customers base too. This made the stock price of Microsoft stagnant and increased marginally with a 4% increase annually. While during the same time Apple’s share price increased 550%, which is by market knowledge way enormous.
Steve Balmer the CEO of Microsoft said that a CEO never judges a company by its stock price but by its profitability, and on profitability margins Microsoft was high with 25% profitability while Apple had only 19% profitability.
Whatever may be the stock price the war between Microsoft and Apple has reached a new high and a winner is going to come out sooner or later.