Apple beats Microsoft's market value record (ignoring inflation)

A record that has stood for over 10 years has finally been broken. Back in 1999, Microsoft achieved a market value of $620.58 billion, during the dot-com boom when tech companies and anything connected to the Internet was all the rage. Lots of tech and Internet businesses launched IPOs and later saw their values drop drastically. Sound familiar?

Today, Microsoft's market value has gone down to "just" $257 billion. Today, another tech company, and one of Microsoft's biggest rivals, has broken Microsoft's market value record. The Associated Press (via Yahoo) reports that Apple's stock surged up today to close at $665.15 a share.

That puts Apple's market value at a whopping $624 billion, eclipsing Microsoft's record and technically making Apple the most valuable company of all time (the numbers don't take inflation into account).

While Apple's stock was down for much of 2012, its price has gone up recently as investors are anticipating the launch of the iPhone 5 sometime in mid-September and possibly a seven inch version of the iPad later this fall.

Even though Apple is technically the most valuable business in the history of man, some financial analysts believe Apple's stock price could go higher. In a poll of 38 analysts, FactSec claims that they predict the average price target for Apple's stock will be $745.80.

Source: Associated Press on Yahoo
Winner image via Shutterstock

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41 Comments

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Apple has an amazing story and is now the most valuable American company ever, It is sad to see all the negativity and lack of celebration about this huge achievement. With sentiment like this it is no wonder that America is in decline.

derekaw said,
Apple has an amazing story and is now the most valuable American company ever, It is sad to see all the negativity and lack of celebration about this huge achievement. With sentiment like this it is no wonder that America is in decline.
What does this have to do with America being in decline? It's a false claim that Apple is even remotely close to beating MS or being the most valuable American company ever. MS is far more valuable. Do you even know what inflation is and why not taking that alone into account makes this article pointless?

Furthermore, Apple is not American. Sure it's 'based' here but everything is made elsewhere. Like China.

deadonthefloor said,

I thought the A(whatever) processors were made in TX.
You mean the ones made by Samsung who is a foreign company with factories in America?

Yes, those are made in TX. Then shipped back overseas to be assembled into Apples products in China.

jasonon said,
apple is freaking dominating
No they're not. You just don't read articles in full - or even the title it seems. This is WITHOUT inflation taken into account. A pretty important aspect. If you were to factor that in - Apple has not and will never beat MS. Dominating? Hardly.

Shrug. If MSFT ever went higher than its hard ceiling of 31, the meaningless comparisons would start to shift back the other way again.

It's pretty easy to beat ancient records when investors have decided that one company is 21x more valuable than the other.

DemonicHawk said,
What's the point of this if it ignores inflation? You might as well compare how much monopoly money each company has.

Stupid comment. You could equally well say "What's the point of this if it ignores the fact Apple achieved all this during a recession while Microsoft had a huge financial boom to work with?" Being the world's most valuable company at any time is super impressive.

Fry said,

Stupid comment. You could equally well say "What's the point of this if it ignores the fact Apple achieved all this during a recession while Microsoft had a huge financial boom to work with?" Being the world's most valuable company at any time is super impressive.

No your comment is stupid.

The article is about Apple beating microsoft's record, pointing out that ignoring inflation when making the comparison is flawed is perfectly sensible.

Fry said,

Stupid comment. You could equally well say "What's the point of this if it ignores the fact Apple achieved all this during a recession while Microsoft had a huge financial boom to work with?" Being the world's most valuable company at any time is super impressive.
Just as Martin said, the article is about the record being broken. Yes, good for Apple; it is impressive to be on top. However, that still does not have anything to do with the fact that MS in 1999 was worth more than Apple is now.

You can blame it on the "boom" and the "recession" if you like and attribute the missing 200-some-odd billion to that. Whatever.

FalseAgent said,
isn't it amazing how these companies get rich just with floating rumors of new product launches?

Betting on a new iPhone is not exactly fictitious. Apple has 70% of the smartphone industry's revenue and every year for the past 5 years they've released a new iPhone. It would be crazy if they *didn't* continue the iPhone line at this point.

togermano said,


yess holla at yo boy obama for that

no, sorry, but you are absolutly wrong. During obama inflation stagnated.. aka there was virtually no inflation.. before there was on average 3% per year inflation... if you have no idea what you are talking about, or are just trying to spread political hate you need to be quiet. this isn't "printing money caused that!" like you are saying, because inflation virtually went no where and was even in the negative for a bit..

neufuse said,

no, sorry, but you are absolutly wrong. During obama inflation stagnated.. aka there was virtually no inflation.. before there was on average 3% per year inflation... if you have no idea what you are talking about, or are just trying to spread political hate you need to be quiet. this isn't "printing money caused that!" like you are saying, because inflation virtually went no where and was even in the negative for a bit..

and of course a little inflation is generally considered to be good for an economy. Whereas deflation might prevent further economic growth

togermano said,


yess holla at yo boy obama for that

Was Obama in power for the last 12 years? Amazing, the Constitution was changed and I did not realize it.../s

Sly_Ripper said,
Adjusted for inflation in 2010, $620.58b would be $804.22b

And how to adjust for the fact that stocks prices were overinflated in 1999? You know when Intel was traded at $80/85 per share?

For every statistic, there will be a million ways to get to it. With that being said, in 10 years time, another company (or maybe MS again or google or who ever) will be the new "most valuable" company in the world.

*and in 10 years certain individuals will be STILL be crying the blues about who ever is the new "cool-to-hate" company.

I love Apple. But I don't see this lasting. Especially since their tablet business is about to be gutted by Google, Amazon and Microsoft.

rojorojo said,
I love Apple. But I don't see this lasting. Especially since their tablet business is about to be gutted by Google, Amazon and Microsoft.

Apple is focused o two areas - phones and tablets. As you said, tablets could become problematic for Apple because of competition. As much as some like to talk down Win8 tablets, it has the potential to be very big, and cut down on Apple's iPad growth.

But phones could also be troublesome for Apple. Everybody is making smart phones now; Android, WP7/8, rumored phones from Amazon, rumored Facebook phones, Mozilla phone, and more. It used to be that smartphones were an oddity, WinMobile, then iPhone, then Android. With more and more phones being introduced, there is a far greater selection, and the smart phone will be commoditized, where people will not look for the logo on the back of their phone, but phones that suit that person individually.

With a limited portfolio of products - Apple long ago conceded the PC market, and now make desktop/laptops to support their other products - within the next 5-10 years, Apple has to face they could have a market valuation similar to Microsoft's today, unless they completely change and focus on some other product line.

nohone said,
As much as some like to talk down Win8 tablets, it has the potential to be very big, and cut down on Apple's iPad growth.
I completely agree. Especially in the school and business worlds. I plan to purchase a W8 tablet the day they are available. Besides simply "wanting" it, I feel the Office integration will be perfect. And how I can seamlessly share across this big Microsoft ecosystem. From my WP7 (which will be a WP8 later this year ), to my tablet, and, in some cases, even my Xbox!

That's another thing, Microsoft OWNS the console market. At least in comparison to Apple. Which is non-existent.

togermano said,
obama printed alot of money since the 1990s so the usa dollar is worth a cow pie

This is from someone who is neutral in party selection, dislike all current candidates...
You're an idiot.

Alladaskill17 said,

This is from someone who is neutral in party selection, dislike all current candidates...
You're an idiot.

hatas be hatin cuz they cant be as hot as me

Alladaskill17 said,

This is from someone who is neutral in party selection, dislike all current candidates...
You're an idiot.

hatas be hatin cuz they cant be as hot as me

How is this calculated.. seriously.. Apple is not even close to market value of Microsoft in 1990s adjusted for inflation today. This is the type of thing that keeps Apple's value so overblown.

Boz said,
How is this calculated.. seriously.. Apple is not even close to market value of Microsoft in 1990s adjusted for inflation today. This is the type of thing that keeps Apple's value so overblown.

Yes, it's not inflation adjusted.

Boz said,
How is this calculated.. seriously.. Apple is not even close to market value of Microsoft in 1990s adjusted for inflation today. This is the type of thing that keeps Apple's value so overblown.

It ain't nothing but a number, man. Apple just does what it does and the stock price does what it does. This has nothing to do with conspiracies to keep Apple's value overblown.

How big of a deal it is and whether it is sensationalized or not are decisions made by the media, not Apple.

Shadrack said,

It ain't nothing but a number, man. Apple just does what it does and the stock price does what it does. This has nothing to do with conspiracies to keep Apple's value overblown.

How big of a deal it is and whether it is sensationalized or not are decisions made by the media, not Apple.

Not saying it's a conspiracy.. It's how people react. It's an emotional thing. A lot of these investors need Apple to be high valued because they have gazillions of dollars invested in it.

These same investors and stock brokerage companies have connections and discuss things with media and this is how you get an overblown value Apple has gotten.

There isn't a SINGLE company out there, that has 80% of the revenue relying on 2 products and is valued this high. Any objective stock broker will tell you that this is artificially blown up. It's Apple bubble.

If by some chance, their 2 main products iPhone and iPad are banned in US for example or they are just eaten by competition, their stock will drop in a matter of months to where it was before and there will be a lot of people out of their money.

That's why it's called a bubble. Those who invested in the past couple years came out great because it was really a gamble, when everyone jumped on board from investments, Apple's stock had to be maintained for the sake of people making money.

When Apple stock drops, it will drop so hard a lot of people will be crying.

Boz said,

Not saying it's a conspiracy.. It's how people react. It's an emotional thing. A lot of these investors need Apple to be high valued because they have gazillions of dollars invested in it.

These same investors and stock brokerage companies have connections and discuss things with media and this is how you get an overblown value Apple has gotten.

There isn't a SINGLE company out there, that has 80% of the revenue relying on 2 products and is valued this high. Any objective stock broker will tell you that this is artificially blown up. It's Apple bubble.

If by some chance, their 2 main products iPhone and iPad are banned in US for example or they are just eaten by competition, their stock will drop in a matter of months to where it was before and there will be a lot of people out of their money.

That's why it's called a bubble. Those who invested in the past couple years came out great because it was really a gamble, when everyone jumped on board from investments, Apple's stock had to be maintained for the sake of people making money.

When Apple stock drops, it will drop so hard a lot of people will be crying.

this happens all the time. analysts are ****in scammers. they manipulate the markets. how its legal,i don't know. they get themselves and their buddies into investments, manipulate the price, cash out and leave all the people to take the fall. hell yes this thing is going to crash hard one day,and all you'll hear are the whiners on how they got screwed. I've seen this story once too many times. you'd be an idiot to invest so much of your money in a company that relies on 1 or 2 products to be successful,especially since said products are being made by hundreds of other manufacturers. im just waiting for that day so I can have a good laugh.

you can be on top one day,and another day at the bottom (nokia,rim). its the same story.

Boz said,
How is this calculated.. seriously.. Apple is not even close to market value of Microsoft in 1990s adjusted for inflation today. This is the type of thing that keeps Apple's value so overblown.

Yep, and they will go bankrupt in 8 months right? Gotta love you Boz, gotta love you.