The biggest buzz in Wall Street right now is how Apple overtook Microsoft shares last Wednesday. The maker’s of Iphone saw its shares rise by 2.8% while that of the consistently top Redmond Company struggled ending with a market value of $219 against Apple’s $222.
This dramatic episode in the technology sector may mark a great shift in the way a business value is determined. The once Microsoft Giant has been strong with its software products. It claims that its operating system is running on practically most of the world’s computers. Consumer demand seems to have overtaken that of corporate requisites as the main reason for taking a technological lead.
It such an irony considering more than a decade ago, everyone thought Apple was down and out and Microsoft had to infuse in some much needed funds to get them going. During that time, the value of Microsoft was five times more than Apple.
The shares of Apple are now worth ten times more than they were a decade ago. Steve Jobs tried to keep getting several steps ahead in product creation which gave the world popular products such as the IPod, Iphone and the recent IPod. Microsoft on the other hand tried to maintain status quo in terms of product development preferring to constantly upgrade their software.
Although Apple still sells their computers, much focus is given to newer products as revenues from these are more than double. The whole industry was able to sell around 172M smart phones the previous year compared with 306M computers. However the sale of smartphones grew five times more than that of the PCs.
Is the era of Window’s over? We have to wait and see. Steve Ballmer may not take that sitting down. It sure will be an exciting field right now with the especially with the strides being done by Google with Android.
Microsoft seems to be more liquid than Apple something which tells you that consumers put more importance to future outlook than current financial condition. IT Support