Straight from the heart!

27 May, 2010

BOOM, Apple beats Microsoft

History was being written yesterday … when by 4 p.m. NY time in NASDAQ Stock Market, Apple’s market value was at $222.1 billion, higher than Microsoft’s $219.2 billion. It’s also the second-largest U.S. stock by market value, behind oil company Exxon Mobil Corp., valued at $278.6 billion on the New York Stock Exchange.

A New World Order has arrived…

Apple Incorporation became the Most Valuable Technology company in the world, pipping Microsoft Corporation, which held the crown for very many years.

Culturally speaking, this is a strong indication that “Consumer tastes” have overtaken the “Business needs” as the leading force shaping technology.

Apple: A Stunning turnaround

Apple was on the verge of bankruptcy when Steve Jobs assumed  leadership in 1997. So much so, Michael Dell suggested that Apple should just shut shop and return the money to shareholders. Today, Dell is worth barely a tenth as much as the Mac maker. In the very same year, Apple accepted a $150 million investment from Microsoft in distress.

Steve transformed Apple from the maker of Macintosh personal computers into a trendsetter in consumer electronics with the release of  iPod music players in 2001 and made the popular Sony personal music instruments go virtually extinct. Then came the iPhone in 2007 which upset Nokia in a big way. The latest mega release of  the iPad tablet in April this year is again beating Apple’s own projections and sold more than 1 million tablets in the U.S. in the first 28 days after its April 3 debut which is interestingly, Double of their iPhone sales in its 1st month of  launch.

Microsoft: Betting big on the Cloud?

Both companies have comparable revenue, with Microsoft at $58.4 billion and Apple at $42.9 billion. But in their most recent fiscal years, Apple had net income of $5.7 billion, while Microsoft earned $14.6 billion. Microsoft still leads the race with nearly 9 out of every 10 new computers sold, whereas Apple’s Mac is less than 1. Microsoft has poured billions into its cell phone, online advertising and other new businesses that have yet to emerge as significant revenue streams.

The next battle for businesses, amongst Tech Titans is foreseen in the Clouds – and literally so. Microsoft’s banking big on Windows Azure and the launch of Office 2010 & Office Web Apps are paving the way as against the Google Apps engine. Cloud computing is projected to create over 300,000 jobs in India alone and provide the subcontinent another advantage for managing the world’s back office.

As for the users, Apple helped create “The best desktop computer”, “The best portable music device”,  “The best smart-phone and now also “The best tablet PC” and …. it’s not yet done with innovations !


  1. Comment@FB

    I knew you would write something adding insult to my injury 🙂

    The problem is simple, IT companies that focus too much on enterprise and forget retail consumers loose in the end, esp. when the monopoly ends by strong competition (IBM, Sun…we all know where they are). Add to it a used car salesman as company CEO and “Kirani ki dukan” style management of COO , Kevin Turner, who BTW has single handedly destroyed innovation culture at Microsoft, with his Wal-Mart style mentality. Why Steve brought this idiot (add to that list Stephen Elop, while you are at it) – is still a mystery, then you have a perfect recipe for disaster.

    In my last 7 yrs with Microsoft, I have met almost all their top line 1-on-1 and I can tell you first hand that they are so bloody disconnected from consumers that it’s not even funny. The idea of opening retail stores worldwide to beat Apple is another disaster waiting to happen. Apple stores are not full of people because they have a retail outlet, it’s because they make products that WOWs their customers. But who is going to tell that to bald headed shmuck, who has been unable to bring a single product to success till date under his leadership.

    Irony of the situation is, we are even losing in the enterprise market. EPG, Enterprise and Partners Group, at Microsoft is headed by a gentleman Simon Witts. If you ever get to meet with this moron, you will see why EPG has been a disaster for enterprise consumers – complex licensing terms, draconian annuity agreement, legal issues within product lines, idiotic decisions like Novel-Microsoft partnership, multiple industry verticals within EPG etc etc.

    In the last 10 yrs, Microsoft has lost all its Rock Stars and the ship is navigated by quacks that have no idea what consumers want in their IT apps and gadgets. We lost Bill Gates, Jeff Raikes (creator of Office), Jim Allchin, Bill Veghte (creator of Windows), Kevin Johnson (best COO money could buy)….and I could go on and on. Someone mentioned XBOX, which is slated to come out later this year with Natal, but we lost Robbie Bach last week.

    My opinion, Steve is going to get shot sooner or later and that would be the end of him & his cronies. My fear, it may not happen in time to save the firm. Fingers crossed.

    Comment by Ahmer Sabri — 28 May, 2010 @ 6:52 am | Reply

  2. The credit goes to the leadership that pave the way towards innovation which ultimately resulted in the achieving the top notch position.

    Comment by Maninderjeets Singh — 28 May, 2010 @ 10:37 am | Reply

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