Apple surpasses Microsoft + Intel in market cap

For those of you following Apple, there are certainly many reasons for its recent success. From iPods to iPhones, and iPads in between, it's hard to deny they have found a niche in mobile devices. As a result, Apple's stock price has increased to levels much higher than many of its rivals over the last five years, evidenced in the graph below.


Image Source: finance.yahoo.com

With the Worldwide Developer's Conference fast approaching (June 6th-10th), it would appear that Apple has nowhere to go, but up. As a result, according to Yahoo! Finance, the current market cap for Apple is $317.54 billion USD. Additionally, Yahoo! estimates that the 1 year estimated stock value per share will be at $448.33.

For reference, the traditional Wintel (Microsoft & Intel) combined market cap is 316.77 billion USD, with Microsoft at 201.29 billion, and Intel at 115.48 billion. Yahoo! Finance lists the 1 year estimated stock value for these companies at 32.93 and 25.65, respectively. However, these traditional relationships are no longer as easily delineated as they once were, as Intel provides processors for Apple devices, with a possibility of producing chips for Apple's mobile devices, as we reported in early May. Though this relationship hasn't been announced (and is still a rumor), it would allow Apple to consolidate chip vendors, and Intel to expand their SoC business with a company with significant mobile market share.

For more information on our Apple coverage click here.

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41 Comments

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Evan, you sound pretty bullish on the stock. I am a little more cautious here. The law of big numbers makes it pretty clear it is going to be hard to grow another 90% next year; even going 30% next year will be hard.

Of course there is one "analyst" calling for Apple to be the worlds first $1, $2 and $3 TRILLION dollar company. I personally only see this happening if the value of the dollar drops by 50% or more from here, since growing revenues is going to be hard (see point #1).

http://www.belowyourmeans.com/...han-msft-intc-combined.html

This to me seems reminiscent of the olds days when Apple and Microsoft first came out with their desktop OS products. At the start, Microsoft seriously lagged behind Apple in terms of both design and functionality. But then Windows came back and is now dominant.

There's a chance that the same thing could happen in the mobile devices segment with Windows Phone and iOS. Take a look how easy it is for mobile vendors to fall. With consumer turning over phone every 12-24 months, it's much easier for consumers to jump and try something new. iOS has been around for a while now, and is supposedly beginning to hit its limitations. I'm no programmer but in terms of UI it just feels old to me - much like Mac OS began to feel after a while.

And when there are cheaper viable alternatives, the hip pocket almost always wins out. I think Nokia WP7 devices will have quite an impact in the near future.

It's really curious... for a stock price to rise so high, there must be people buying. I wonder who are the gullible people taking up the stock?

Look at it this way. Apple is trading at a P/E ratio of approximately 16. Microsoft is trading at a much more conservative 9 - which is about the ball park for tech stocks. I know where I'd be investing my money!

I wonder what Windows 8's release will do for Microsoft and Apple's stocks. Unless Apple releases something better than what has been reported about Lion, then they are in for a rude awakening as Microsoft rolls out Windows 8.

Unless iOS 5 is a game changer (other than the rumored and much needed notification improvements), then I will definitely encourage people to wait for a Windows 8 tablet, and wait for one myself (personally was waiting for iPad X where X is the version with a higher resolution screen than the iPhone 4).

The good news is MSFT stock is bottomed out and with WP7, Windows 8, Azure and the general feeling that things are turning around in Redmond I see the stock at $50 in 12 months.

Shrug. Price MS stock at 15x Apple, then compare and tell me how much difference it makes to each company's performance.

jasonon said,
the bigger they are the harder they fall?

AOL's market cap was 222 billion at its peak. That is today more than Microsoft's and IBM's.

while i hate apple and thier products one thing i will always agree about is that they have very nice design for thier products. they are sleek and clean. Ive never seen a better looking laptop than macbooks, and im a microsoft fan.

Soldiers33 said,
while i hate apple and thier products one thing i will always agree about is that they have very nice design for thier products. they are sleek and clean. Ive never seen a better looking laptop than macbooks, and im a microsoft fan.

You've never seen a better looking OS than OS X too, iOS, iPod, iPad...they are amazing products that's why their market cap is skyrocketing and on the other hand look at the Microsoft, Windows user base is continuing to decline, WP 7 is still a failure and so on

Asesh said,
You've never seen a better looking OS than OS X too

Personal preference. For me, I always thought OSX looked rather bland. Besides, looks isn't everything.. I've seen some pretty spectacular looking Compiz Fusion based desktops that visually are better than OSX and Windows, but I wouldn't want it on my desktop either.

Asesh said,
Windows user base is continuing to decline, and going up

Corrected it for you

It has been going up and down for years, keep dreaming

satus said,
When they cant introduce anything revolutionary. Wah la ballon pop. Stock is similar to gambling.

They've never introduced anything revolutionary in the first place. They were all just well-marketed overpriced inspirations from work from previous companies. Examples are the iPhone and iPad.

PlogCF said,

They've never introduced anything revolutionary in the first place. They were all just well-marketed overpriced inspirations from work from previous companies. Examples are the iPhone and iPad.

While I do not use an iPhone I have no problem to admit that the paradigm Apple introduced completely revolutionized the way people interacted with their phones.

There's no such thing as Wintel anymore considering that many Windows PCs use AMD and that Apple also uses Intel now. There are also no staunchly "Wintel" PMPs, MP3 players, or smartphones.

I really don't know how people can swallow this clearly over (I mean OVER) priced ****. Seriously, They could cut their prices by half and still make a 30 procent profit. They make seriously good money, but have they ever thought of making their customer service better? You type Apple customer service you find all kinds of articles like this:http://whitneyhess.com/blog/20...le-customer-support-fiasco/

Their laptops are white with a Apple logo, underneath is a laptop not better then any other. So much people are convinced that Apple has better hardware.
Their software was always their strength, it's the software that make people buy their ****ty hardware.

I simply can't believe the entire world is going crazy, because of looks (design). Every gotdamn newspaper has an ios app.
What's so wrong investing in opensource. I hate that people buy because of a brandname.
30% of Apple's profit is the logo and the white look.

Renato456 said,
I really don't know how people can swallow this clearly over (I mean OVER) priced ****. Seriously, They could cut their prices by half and still make a 30 procent profit. They make seriously good money, but have they ever thought of making their customer service better? You type Apple customer service you find all kinds of articles like this:http://whitneyhess.com/blog/20...le-customer-support-fiasco/

Their laptops are white with a Apple logo, underneath is a laptop not better then any other. So much people are convinced that Apple has better hardware.
Their software was always their strength, it's the software that make people buy their ****ty hardware.

I simply can't believe the entire world is going crazy, because of looks (design). Every gotdamn newspaper has an ios app.
What's so wrong investing in opensource. I hate that people buy because of a brandname.
30% of Apple's profit is the logo and the white look.

Funny, I'm kind of the opposite. I bought for the hardware but didn't like the software. The Macbook Pro is pretty nice, but I run Windows 7 on it instead of Mac OS. I've been really invested in Mac stuff over the past 6-7 years, but I'm starting to phase it all out because of the direction they're headed in terms of their lack of respect for customers.

Renato456 said,
I really don't know how people can swallow this clearly over (I mean OVER) priced ****. Seriously, They could cut their prices by half and still make a 30 procent profit. They make seriously good money, but have they ever thought of making their customer service better? You type Apple customer service you find all kinds of articles like this:http://whitneyhess.com/blog/20...le-customer-support-fiasco/

Their laptops are white with a Apple logo, underneath is a laptop not better then any other. So much people are convinced that Apple has better hardware.
Their software was always their strength, it's the software that make people buy their ****ty hardware.

I simply can't believe the entire world is going crazy, because of looks (design). Every gotdamn newspaper has an ios app.
What's so wrong investing in opensource. I hate that people buy because of a brandname.
30% of Apple's profit is the logo and the white look.


Ya, i know, i feel ur pain. But hey, ur droid IS "open" ... at least it's what they want u believe

tester.br said,


Ya, i know, i feel ur pain. But hey, ur droid IS "open" ... at least it's what they want u believe

seriously, anti-apple = pro google/microsoft even?

how old are you? your ancestry will be heavily disappointed in you.

remember people, buying high gets you bit in the butt..... to invest in Apple right now is a little dumb, it might go up some, but at some point it is going to go down... Apple really needs to do a 2 for 1 spit or something.....


but then selling less at a higher price, you can make more then more at a lower price.... Apple seems to follow this stratagie.... but if you take the phone market out of apple, they are nothing compared to what they are now.... their OS / Desktop division is tiny compared to their other divisions, so Apple wont be taking over the desktop market anytime soon, MS has little to really worry about right now, besides the phone market... and that has always been a small market for MS

How long can this 4 products strategy work for Apple? I wouldn't buy their stock, now that it's so high, I would wait till after WDC and see what happens. With Microsoft now firing on all cylinders, their stock has nowhere but to go up also. Win7, Xbox 360, Office 10, Office 365, Mango, Kinekt, Windows Server. All of these are cash cows that won't stop producing anytime soon. Imagine xBox doing better now in it's 5th year than any time before. Unbelievable. Now the next generation of all the above-mentioned products are at hand. Watch my word... The big looser in all of this will be Google.. Let the fight begin

vhaakmat said,
How long can this 4 products strategy work for Apple? I wouldn't buy their stock, now that it's so high, I would wait till after WDC and see what happens. With Microsoft now firing on all cylinders, their stock has nowhere but to go up also. Win7, Xbox 360, Office 10, Office 365, Mango, Kinekt, Windows Server. All of these are cash cows that won't stop producing anytime soon. Imagine xBox doing better now in it's 5th year than any time before. Unbelievable. Now the next generation of all the above-mentioned products are at hand. Watch my word... The big looser in all of this will be Google.. Let the fight begin

I agree. Also with the sneak peak of Windows 8 and the backing of many key hardware/technology companies I just don' t see how Microsoft can't go up: Take a look at the marketing power of all Microsoft's partners, Microsoft's attempt at seamless integration between products, ARM support (many more companies will be able to provide hardware solutions using Microsoft technologies), and Microsoft's development platform plus everything you've said and its hard to argue otherwise.

What seems to be the trend these days is platform/service over product as well. Microsoft already builds the most-used tools/platform in the world: Windows + Office. Get everyone dependent on your platform and tools and you can get them hooked on other services/products that mate the technologies together (eg. Facebook has a superior platform vs. Myspace and apps are written for it; an investment that developers don't want to lose out on which in turn promotes them to do what they can to keep Facebook relevant/popular by promoting Facebook itself).

I predict Windows 8 will be a gold mind for hardware partners and application developers alike.

Edited by svnO.o, Jun 4 2011, 7:11pm :

azure.sapphire said,

No, no it won't be Google.

I think it could be Google, actually if you look at where they're heading with Android...

vhaakmat said,
How long can this 4 products strategy work for Apple? I wouldn't buy their stock, now that it's so high, I would wait till after WDC and see what happens. With Microsoft now firing on all cylinders, their stock has nowhere but to go up also. Win7, Xbox 360, Office 10, Office 365, Mango, Kinekt, Windows Server. All of these are cash cows that won't stop producing anytime soon. Imagine xBox doing better now in it's 5th year than any time before. Unbelievable. Now the next generation of all the above-mentioned products are at hand. Watch my word... The big looser in all of this will be Google.. Let the fight begin

I completely agree, but Apple had a trick under their sleeve which was the iPhone, who knows we might see something else.

svnO.o said,
I agree. Also with the sneak peak of Windows 8 and the backing of many key hardware/technology companies I just don' t see how Microsoft can't go up

Wall Street likes to bet against MSFT. The lack of movement in the stock more or less makes sense with that in mind. It's not a meritocracy or a reward system.

ccoltmanm said,
Good job Apple. Lets go MS! I'm a fanboy of yours!

haha... Microsoft's been doing good as well lately. They just need to catch up with WP7, which im sure will happen.

Beastage said,
there is a bubble going on.

indeed it is. it's singnificantly overpriced. early or later it will burst


wonder how US government still allowing this. 2008 didn't teach them?

coth said,

indeed it is. it's singnificantly overpriced. early or later it will burst


wonder how US government still allowing this. 2008 didn't teach them?

good time to sell? apple shares will take a bit of a dive after WWDC as they always do, the market expects something unbelievable and are always disappointed with reality