Are you surprised that Apple is now the world’s largest technology company, and has overtaken Microsoft in market capitalization?The financial scorecard on May 26 – a $222.1-billion (U.S.) market value for Apple versus $219.2-billion for Microsoft – marks a symbolic changing of the guard. Apple's shares are now worth 10 times more than they were 10 years ago.
According to Barrie McKenna for the Globe and Mail, "It parallels a remarkable reversal of fortunes for the two U.S. technology titans – one who wooed consumers, the other who chased Big Business.
The consumer won. Apple, which once relied on one-hit wonder computers, has transformed itself into a consumer electronics giant by cleverly linking its trendy devices – including the iPod, iPhone and its latest iPad – to lucrative sales of songs, books, photos and movies.
Microsoft, meanwhile, has become a stagnating giant, content to be a technology follower, too reliant on pushing its Windows operating system on business customers."
It’s been a remarkable comeback for Apple and its founder Steven Jobs, who presided over the launch of the Macintosh computer in 1984.
In years since, the computer company almost crashed as Microsoft’s operating systems dominated the industry. For a while, Mr. Jobs was exiled from his own company. And rivals suggested Apple should be wound down and the cash handed back to shareholders.
But Mr. Jobs came back in 1997. "He reinvented Apple, and himself, as a purveyor of must-have computers and tech gadgets, with enticing designs that made technology fashionable and easy to use."
Take the classic iPod, for example, which can store a lifetime of music. "It looked more like a white soap dish than a sophisticated piece of electronics. But consumers loved the functionality and convenience of the device, launching Apple’s transformation into a digital media giant."
To what extent do you enjoy Apple products? Will you be purchasing an iPad? It seems like Apple right now has mastered the art of digital convergence.
