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Apple is Officially Worth More than Microsoft

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Re: Apple is Officially Worth More than Microsoft

#3
post #2

Some would argue that they were always worth more. :-) It's interesting that this happened without breaking Microsoft's 90% desktop monopoly. Apple got bigger but it wasn't to the detriment of Microsoft. They just grew into new markets.

I suspect that this was just a sound bite in 1997, but Jobs himself said it: "We have to let go of a few things here. We have to let go of the notion that for Apple to win, Microsoft has to lose."

Re: Apple is Officially Worth More than Microsoft

#5
post #2

Some would argue that they were always worth more. :-) It's interesting that this happened without breaking Microsoft's 90% desktop monopoly. Apple got bigger but it wasn't to the detriment of Microsoft. They just grew into new markets.

Exactly! One of the best essay in PG's H&Ps book in my opinion was the one that explains how winning doesn't have to be a zero-sum game, you can generate wealth. This seems a no brainer but a lot of people don't get it.

Many predict that a similar thing will happen in the battle between Google and Apple.

Re: Apple is Officially Worth More than Microsoft

#6
Interesting tidbit, when you scroll down the page to the end where the logos are displayed, the apple logo looks new, shiny and modern, the microsoft logo looks old and boring.

Their corporate images reflect the logos quite well.

edit: funny moderation here, would you mind telling me why ? Apple logo on the page not shiny ? Microsoft logo not old and boring ? Or do you - mistakenly - take me for an apple fanboy or something ?

Re: Apple is Officially Worth More than Microsoft

#9
post #2

Some would argue that they were always worth more. :-) It's interesting that this happened without breaking Microsoft's 90% desktop monopoly. Apple got bigger but it wasn't to the detriment of Microsoft. They just grew into new markets.

Markets change. If you are unable to adapt well, you will likely perish or grow obsolete.

Re: Apple is Officially Worth More than Microsoft

#10

Consider that Apple's P/E is 24.5 and Microsoft's P/E is 13.4. Basically, while Apple may be in demand right now, Microsoft is earning almost twice as much. Also, Microsoft pays a (albeit small) dividend, whereas Apple does not.

Goldman Sachs has a P/E ratio of 5.94.

Microsoft's P/E is heavily "discounted" because it's considered a sort of swan song of easy money (the Windows and Office empire that they've coasted on). Apple's is considered the beginning of things. Stock value today isn't based on today, it's based on "tomorrow".

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