Its official now. Apple has overtaken Microsoft to become the world’s most valuable tech company, which is evident from the fact that Apple’s market capitalization (market cap) is on the NASDAQ stock exchange is higher than Microsoft’s.
Market cap is one of the many crucial ways that financial markets measure the value of a company. It is calculated by considering the value of stocks issued verses the amount issued. Going by the figures, Apple now stands at $227 billion compared to Microsoft, which is now at $223 billion. The value of a complete firm can’t be judged on market cap alone. But it does support the fact that slowly and very steadily Apple is scuffling with Microsoft on every front in market: smartphone (Win Phone 7 v/s iPhone 4), PC’s v/s Macs, iPod v/s Zune and iPad (Microsoft is nowhere until now in the tablets market).
Market Trends (Apple v/s Microsoft)
These figures now clearly show that Apple has turned the table towards itself by the success of iPod and iPhone, whereas Microsoft as a consumer electronics company is nowhere near to Apple. If you look at the stats, in the past five years Apple’s stock has risen nearly 560% while Microsoft’s has risen by a small amount of 4%. These figures support that notion that within past 5 years, the taste of consumers have changed drastically from business focused services (Windows and Office packages) towards funky devices that are easy to use and are good in looks as well.