Microsoft surpassed Apple this week to become the world's most valuable company again

[Polycount]

Forward-looking: Satya Nadella sure is doing things right at Microsoft. Since beginning his tenure as CEO in February 2014, Microsoft's stock price has tripled, a strong positive signal of how the company is being perceived. Microsoft was still leading many areas and was plenty profitable, but was also seen as sluggish and stagnant. Nadella refocused the company's efforts to find growth in business and the cloud, realigned Office to work as a SaaS platform, and is slowly moving Windows in that same direction, but the OS is no longer at the center of everything the company does.

Apple has managed to (mostly) retain its position as the world's most valuable company for quite a while now. Earlier this year it became the first company to hit a trillion dollar valuation, and Amazon followed not so long after. But as the market took a dive in the later part of the year and tech stocks were hit hard, Microsoft seems to be one of the less affected parties.

For the first time in the better part of a decade, Microsoft has challenged Apple's lead. As the market closed Friday, Microsoft caught up with and surpassed its competitor in terms of market capitalization, hitting a total valuation of $851.22 billion. This number exceeds Apple's market cap of $847.43 billion. Needless to say, the value of major tech companies like Microsoft and Apple changes all the time, and Microsoft may not retain this position for long.

Apple's valuation is roughly flat for the year after hitting record levels in August and September. The iPhone maker has been hit this past month after reports of struggles with lower than expected demand for its latest XS and XR phone releases. In other words, Microsoft may have temporarily won by default.

Even though Microsoft is once again in close battle with other tech giants, there's a good chance the Redmond company will remain neck-and-neck with Apple for the foreseeable future.

Microsoft has been pumping out quite a few well-received products, including its Surface line, but perhaps most importantly, bringing tons of fresh cash with Azure and Office 365. Even the company's AR bet was recently awarded a $480 million contract to provide the US Army with combat-ready HoloLens augmented reality headsets.

If they can continue to deliver, maybe Microsoft is finally ready to reach new milestones on a more permanent level.

Permalink to story.

https://www.techspot.com/news/77579-microsoft-temporarily-surpassed-apple-become-world-most-valuable.html

 

[psycros]

"Instead, it's likely that Apple's recent struggles with low demand for its latest iPhones are what caused the company's stock -- and thus, its market cap -- to slide. In other words, Microsoft may have (temporarily) won by default."

Exactly what most of us were thinking. It still leaves me stunned that the most valuable companies in the world are getting their profits mostly from expensive electronic toys. Anything worth doing on a phone could be accomplished on a Blackberry ten years ago (including Facebook, Shazam and so on). Nothing that's been developed since has really helped the end user at all..its all just marketing and privacy invasion now.

 

[cliffordcooley]

"Instead, it's likely that Apple's recent struggles with low demand for its latest iPhones are what caused the company's stock -- and thus, its market cap -- to slide. In other words, Microsoft may have (temporarily) won by default."

Exactly what most of us were thinking.

They surely didn't get it by listening to consumer desires.

 

[Lew Zealand]

Which is why no consumers buy Apple hardware, right?

Now where does this company keep finding it's record profits again? Couch cushions I'll bet.

 

[toooooot]

My thumbnail files got corrupt recently. That is each time I d open a folder with photos file explorer would crash. I blame you Microsoft, and yet you keep getting more expensive. Life is unfair, I should get more expensive instead.

 

[netman]

Big Deal!

 

[Danny101]

Apple is losing it in the content creation market. Many musicians are sticking with the older Apple products and not upgrading because they are not happy with the new products. For one thing, Apple broke compatibility with many of the tools that the musicians were using. They say the old stuff 'just works' and the new stuff 'just don't'.

 

[Dimitrios]

Must be selling our information to our government or their selling a lot of gaming consoles. I'm actually really shocked. Was I in a coma or something?

 

[ET3D]

But more important for US people is that the Chinese 25% tariff has been postponed and might not end up happening.

 

[senketsu]

Which is why no consumers buy Apple hardware, right?

some people bought Pet Rocks too, your point?

Now where does this company keep finding it's record profits again?

how about their obscene to the point it should be illegal markup. 30% profit on all apps in their store and more. Adapters, adapters, and more adapters.
Face it, their phones aren't meeting expectations anymore, their laptops with their failing keyboards, the trashcan Mac that belongs in the trash can, Read the news, Apple is not doing as well as they used to.
edit: add the power of Branding, built on a past when their products were more revolutionary and were more in line with consumers that actually do stuff

 

[Lew Zealand]

some people bought Pet Rocks too, your point?

That comparison is meaningless. Did pet rocks sell 45 million per quarter for an average price upwards of $500? Perhaps you'd care to clarify your point.

You'll note that the iPhone consistently has among, if not the, best screen, camera, battery life, and has had the fastest processor in a phone for years now. This is a tech site and those are the things we look for here.

Steve has said many times with very few exceptions: there are no bad products, just bad prices. The iPhone is not a bad product though you may agree with me that it has a bad price. Anyone who actually thinks the iPhone is a bad product is a hater, plain and simple.

how about their obscene to the point it should be illegal markup. 30% profit on all apps in their store and more. Adapters, adapters, and more adapters.
Face it, their phones aren't meeting expectations anymore, their laptops with their failing keyboards, the trashcan Mac that belongs in the trash can, Read the news, Apple is not doing as well as they used to.
edit: add the power of Branding, built on a past when their products were more revolutionary and were more in line with consumers that actually do stuff

For something as trivial as a smartphone, if people will pay the price then that price is justified. It's just economics, no need to get worked up about it. Apple's profits speak to the fact that they know how to manage a market. If their profits fall this time around, it will be interesting to see if Mr. Econ, Tim Cook, can respond to the market properly.