The New York Times pointed out on Wednesday that Apple Inc. has overtaken Microsoft Corp. as the world's most valuable technology company, based on market capitalization.
With Apple shares up 1.8 per cent earlier in the day, the iPod/iPad/iPhone/iEverything maker had a market cap of $227-billion (U.S.), nearly $1-billion more than Microsoft.
What's more interesting here is the trend over the past decade. While Apple shares began to blossom about midway through the decade, rising more than 1000 per cent, Microsoft shares have gone nowhere, rising all of 8 per cent. Total. And that includes dividends.
There's probably an investing take-away here. A lot of commentators like to point out that Apple was left for dead between 2001 and 2003, trading as low as $6.56. On the other hand, Microsoft has long been touted as a virtual monopoly, with its fingerprints on most PC operating systems.
Looking back, it might have been difficult for most investors to see Apple's potential as it transformed itself into a music and entertainment behemoth. But as for Microsoft, the signs of its stagnation have been fairly clear: Who isn't frustrated with its Windows products? What innovations has Microsoft delivered to customers over the past decade? And who sings the praises of its top leaders?
David Berman