Apple now bigger than Microsoft

A decade ago this would have been a ludicrous headline and one that would have been scoffed at as a forecast. However, Apple has now officially passed Microsoft as the larger company of the two. It is now the worlds largest technology company.

With fluctuating share prices impacting the market capitalisation of the organisation, Apple was valued at $154bn today compared to Microsoft at a billion less.

What has not changed though is the fact that Microsoft profits dwarf those of Apple. It enjoys profits of almost 3 times that of Apple, with a collosal $10 billion compared to $3.5 billion.

Microsoft revenues were also substantially higher, with over $40 billion to Apples $27 billion. When you consider that Apple nearly ceased to exist less than 20 years ago, it is a remarkable recovery. The launch of the iPod contributed dramatically to its success and was followed by big increases in sales of their Mac computing platform and the all conquering Apple iPhone in more recent years.

The launch of the iPad in the USA has been a roaring success and the same is anticipated in the UK and the remainder of Europe, so the seeds are there for Apple to potentially widen the gap in 2011.

Microsoft will not be easy to keep back though. They are still a massively successful company with successes in the gaming market courtesy of the X-Box and Windows 7 has done much to stem years of criticism over Windows Vista.

Our thoughts

To think that Apple could even dream of having a larger market capitalisation many years ago would have been ridiculed. What they have achieved is nothing short of incredible - and there is probably much more to come.

As a famous Dragon says though - turnover is vanity, profit is vanity. Microsoft remains King at making the market pay and reaping the rewards. Shareholders want dividends and Microsoft will continue to reward its investors much more kindly than Apple will for a long time to come.

Apple is very much the darling of the industry again though and has tapped into an entirely new market over the last 10 years - one that values entertainment, accessibility and portability more than ever before.

So, it does not mean the end for Microsoft because both organisations remain at the top of their game. But, you can be assured it makes for interesting thoughts on what the future might bring as both companies will undoubtedly encroach on the market of their nearest and, historically and still, their biggest rival.