backtop


Print 42 comment(s) - last by weskurtz0081.. on Aug 21 at 11:11 PM

Apple's market cap surpasses Microsoft in its 1990s hey-day

CNN Money carried an interesting story on Monday entitled "Apple is now the most valuable company of all time".  Similar headlines soon abounded.

Indeed Apple, Inc. (AAPL), despite a "bad" quarter which would be cause for celebration for just about anyone else, has soared in value over the last decade with the success of the iPod, then the iPhone, and most recently the iPad.  From 2000 to present, shares increased from a market cap of $8B USD to $623B USD.  For comparison's sake gold -- typically consider a massive commodities success story -- has only ballooned from $238 USD per oz. to $1640 USD per oz. at last count.

So when Apple's soaring stock set a market capitalization record of $623B USD (at $665.15 USD/share) -- more than the $618.9B USD Microsoft was worth (according to investors) in Dec. 30 at the height of so-called "dot com bubble".

But for all the streamers and confetti, the claim that Apple is the "most valuable of all time/in all of history" isn’t accurate.  Value is based on the worth of the currency at the time.

Siri
"Siri, who is the most valuable company in all of history?" Ding ding.. "In today's dollars Microsoft in 1999 would be." [Image Source: AP Photo]

In 2010 dollars, Microsoft's $618B USD valuation would be over $820B USD.  While inflation data is still being finalized for last year, it would likely be somewhere in the ballpark of $850B USD in today's money (The Columbia Journalism Review says $856B USD in today's money, although it admits to goofing by saying that International Business Machines, Inc. (IBM) in 1967 was the most valuable, failing to realize that the data it was working off of was already adjusted).  

The headlines are particularly troubling, given that even a simple Wikipedia search would have revealed the truth (Wikipedia pegs Microsoft's peak value at $846B USD in today's money).

In other words, Apple still has to grow by another third in order to truly become the most valuable of all time.

Still, it is fair to lavish Apple with some praise.  The company was most profitable tech firm for 2011 and third in total profits.  For 2012 Apple is expected to be the most profitable American firm.

Those profits could soar even higher if Apple succeeds in its court bid to ban rival Samsung Electronics Comp., Ltd.'s (KSC:005930) devices from the American market -- the world's most lucrative and second largest smartphone market.

But Apple has a long hard road ahead to become truly the biggest company in history.  For now, it is merely in a small crowd of historic elites.

Sources: CNN Money, CJR



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

By 91TTZ on 8/21/2012 1:38:23 PM , Rating: 2
quote:
Oil companies exists in a market where there's not healthy competition against their product,


This isn't true. There is a lot of competition in the oil and gas market. In the list of the top 10 companies by revenue there are 6 different oil and gas companies. Those are a lot of strong competitors all competing against one another.

Meanwhile in the smartphone market there are only a couple of big players. While there are many companies that sell smartphones, Apple and Samsung make 90% of all the profits. Oil is a commodity and goes for a commodity price. There isn't much brand loyalty in such markets. Buying gasoline is like buying bottled water or buying produce. Yeah, you probably need it but you can go anywhere to get it.

quote:
There's a HUGE difference. Our economy is hostage to oil, so when an executive makes millions to billions in a year, yeah, everyone should be pissed because we don't have much of a choice.


Apple- Tim Cook's 2011 compensation: $378 million
ExxonMobil- Rex Tillerson's 2011 compensation: $35 million

You have just as much choice to buy Apple's products as you do about buying ExxonMobil's products. Don't like Exxon? Go to the BP station across the street. Don't like either of them? Go to the Sunoco station down the block.

The fault in your entire argument is that you're treating oil companies like they're all the same company just because they all sell oil and fuel. They're merely competitors in the same market. Blaming Exxon for your dislike of BP is like blaming Samsung for your dislike of Apple.


"If they're going to pirate somebody, we want it to be us rather than somebody else." -- Microsoft Business Group President Jeff Raikes














botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki