Fast Company

Apple Passes Microsoft

According to the Wall Street Journal today, Apple had a market value of $15.6 billion as compared to Microsoft at $556 billion 10 years ago when Steve Ballmer took over for Microsoft.

How did it happen that Apple has now passed the blue chip of blue chips in newer tech companies in cap value as it did today? By outdoing Microsoft with the consumer. So interesting that Microsoft has had many attempts at the consumer market through the Web. Apple stuck to products. And transformed itself into the sexiest gadget company on the planet (Sorry Sony).

Microsoft stated a goal a couple of years ago to have 25% of its' revenues in the media business. Meanwhile, the iPhone has taken the newest of emerging media technologies, the smart phone market by storm. And in the process, pumped up a fairly small widget market and transformed it into the app market. Talk about being in the media business. Microsoft has talked the talk, but Apple has walked the walk. Music, phones, publishing, what's next?

But it could be that we ain't seen nothin' yet as the man once said. The iPad, like the iPod and the iPhone, may just be the biggest transformational product of all. And, it effectively merges a number of markets. It merges technology and media in a way that nothing ever has. It might even revive the magazine business in a way that the web never could. It's already seriously cutting into netbook sales (sorry Intel) already. They say it has a 7-10 day delivery time, but trust me, it's more like 3-4 weeks. And the backlog is getting longer, not shorter.

Sure, there are a lot of companies coming out with their tablets. Just like there were many with MP3 players, many with eReaders, and MANY MANY with phones and smart phones. Anybody want to bet against Apple on the iPad? Sure, Amazon won in the eReader area, but Apple is not going to win them all.

Apple's convergence of gadgets, applications and the media business is unique. I find myself using apps and smaller footprint software a lot more, at the expense of the time I spend with things like Office.

Nobody could have predicted this. And Apple is not expected to slow anytime soon. We're just seeing the tip of the iceberg in where the iPad, the iPhone and the iPod Touch can go. Apple is in the media business to say. And they did it the hard way, through innovation in products rather than media vehicles. Good for them. (This from a diehard PC and Windows fan)

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3 Comments

  • orlando cordero

    Please proofread articles before posting. Then have a content review because this is not an expert opinion but more fanboy tripe. Facts and figures would give more credence to an "expert opinion". Very unprofessional.

  • Geryth Gryphin

    Fast Company confirms it is Irrelevant

    Catchy title huh? And since it is in print, it must be true.

    When did fiction replace facts? Your opening paragraph makes zero sense. Are you saying MS's current market value is less than $15.6 billion? Are you saying Apples is more than $556b ? Do you have any idea what you're saying?

    It doesn't matter, does it. Just the sensational headline and nothing to back it up.

    Here are some 'facts' for you;

    Apples market share is conservatively between 3% - 10%. This is a hard number to nail down because no-one cares about the facts. Even a pro-apple research article says " In the consumer market, where Apple does compete, he estimates the Mac's share is now 10% worldwide and an impressive 21% in the U.S." What does that mean? That if a business wanted a Mac Apple would say "sorry, we are not interested"?

    The same article points out that " ...enterprise sales account for 70% of the worldwide market..", which Apple doesn't compete in. But that doesn't matter, right? Let's just hyper inflate the numbers you want to see.

    Here's some numbers for you; after 30 years of effort Apple is still irrelevant in the business market because 90% of business desktops are not Mac's. And 80% of home systems are not Mac's.

    In the same time period, Microsoft has gone from ZERO market share to 90% of the desktop, 70% of the home, and almost 100% of the Back Office server market.

    This is a great American success story. It should be (and historically will be) lauded as one of the greatest achievements of human history.

    And what has Bill done with all this wealth and power? He is giving it away and convinced his friend and fellow 'richest man in the world' to do the same.

    http://www.gatesfoundation.org...

    So why are you all hating on Bill?

    The fact is, Apple has great marketing. They have created a 'brand', not a product. They 'play the part' of David (them) against Goliath (MS).

    Unfortunately, that game was already played out and Apple did nothing but sit on the side lines (MS-Windows vs. IBM-OS2).

    The saddest thing is that your article will help some witless dope to go buy another crapple product. He will then do one of two things, 1) he will 'pretend' he is happy with it so he doesn't have to admit he was a fool; or 2) He will bring it to me and we will get him a Blackberry or Droid or and HP PC.