Apple surpasses Microsoft to become world’s biggest tech company, second-most-valuable U.S. company

189 Comments

In one of the clearest signs yet of the renaissance that’s finally putting a close to The Dark Age of Personal Computing, Apple Inc. (AAPL) has overtaken Microsoft (MSFT) to become the second-most-valuable U.S. company.

Microsoft spent most of the trading day fending off Apple relentless assault — sometimes by excruciatingly small amounts — but, at approximately 2:15pm EDT, shares of Apple rose $4.35, or 1.78%, to $249.57, putting Apple’s market value at $227.10 billion and finally overtaking Microsoft’s which declined $0.20, or 0.77%, to 25.87, putting their market cap at $226.72 billion.

Watching it happen in real-time and then savoring the replay on 15-minute delay was doubly satisfying!

What I can’t figure out is why he (Steve Jobs) is even trying (to be the CEO of Apple)? He knows he can’t win. – Bill Gates, June 1998

Expect the companies to trade positions back and forth in the near term, but Apple should put the derivative Microsoft in their rearview mirror soon enough.

As per NYSE, the top five U.S. publicly-traded companies, based on full market values, are:
1. Exxon Mobil (XOM) – $283.06B
2. Apple (AAPL) – $227.10B
3. Microsoft (MSFT) – $226.72B
4. Wal-Mart (WMT) – $189.57B
5. Berkshire hathaway (BRKA) – $175.76B

MacDailyNews Take: Pop the corks! Congrats, Apple, on a job very, very, very well done!

One more thing… Boom!

189 Comments

  3. Holy Rusted Metal Batman!

    Ummmm, WOW! I did not expect this to happen until mid summer at the earliest. My Apple stock is surpassing my wildest expectations.

    Thanks Apple and Steve Jobs!

    Reply

  11. Prestige des Sacres … that is the name of my Champagne bottle I’m sharing with my wife – who thinks I’m crazy by the way ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />

    Reply

  19. Champange open and down the hatch…..Hooooorayyyy congrats to Apple!
    And for those who had doubt…… You know who you are it’s time to join the party cause apple will continue to grow and grow !

    Reply

  23. SWEET. I’m been watching that valuation race for two years. Apple passed Microsoft about a year faster than I ever dreamed they would.

    What a great moment.

    The rumbling sound you hear in the distance is not thunder, just chairs crashing in Redmond.

    Reply

  24. @nicu

    I prefer a simple blanc de blanc, myself. Never tasted that champagne, though. Heck, it’s hot out, perhaps a nice gin and tonic. Work stinks when you want a nice drink. Thanks a lot, Nicu!

    Reply

  29. Wow, that happend much quicker than I thought.
    They WILL go back and fourth for a time, but we all know which directions the two are going in the long run.

    So THAT’S why Apple included the stock app in the iPhone. ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />

    Reply

  31. “We could get rid of our old PCs, some of which have outdated software such as Microsoft Word 2003,” the source told the Times. “The majority of MEPs have already got iPhones and they are very happy with them. The PC was good for its time but the iPad is a much better device.”

    Marta Andreasen, the UK Independence Party member and euro skeptic who sits on the budget committee told the Times, “We were told the iPads would actually cut costs as they are not expensive and that we would be able to stay connected while outside the office or on holidays, but many of the older MEPs don’t even know how to use the Internet properly.”

    “I am against that because it seems completely unnecessary, especially when European taxpayers are facing such difficult times.”

    Europe in Crisis, Lawmakers Get New iPads
    by: Patrick Allen
    CNBC Senior News Editor

    Reply

  34. @ Contrarian

    I just take advantage that we live in France and bought several dozens of those from the producer (without breaking the bank). And my investement style (mostly AAPL and AAPL calls, of course) is contrarian (buy when there is blood in the streets and sell when everybody is cheering).

    Anyway, congrats to Apple, Steve and all AAPL longs ” width=”19″ height=”19″ alt=”smile” style=”border:0;” />

    Reply

  48. @Jeff,

    But that means, that means, you just killed Apple and are drinking its blood?

    I still have drinking on the brain. Perhaps a martini, the drink that is civilization.

    “There is something about a Martini,
    A tingle remarkably pleasant;
    A yellow, a mellow Martini;
    I wish I had one at present.
    There is something about a Martini,
    Ere the dining and dancing begin,
    And to tell you the truth,
    It is not the vermouth—
    I think perhaps it’s the gin.”

    Reply

  51. Even though the figures will seesaw for a while yet, this news is gargantuan. I think what made this happen was HP ditching WinMo and going with webOS (snigger!). The rats are leaving the sinking ship, my friends – next up, Micky “Mouse” Dell will sell up and give the money back to the shareholders.

    BLOODBATH!!!

    =:~)

    Reply

  54. *clears throat*

    AAAHAHAHAHAHAHAHAHAHAHAHA!!!!

    LOOK! MICROSOFT’S STOCK IS TAKING A DIVE ON THIS NEWS!

    THIS IS KARMIC REVENGE FOR EVERY HAIRPULLING MOMENT I’VE EVER SPENT USING WINDOWS, YOU REDMOND BASTARDS! EVERY TECH SUPPORT CALL, EVERY MISSING DLL, EVERY WIPE AND INSTALL, EVERY INNOVATOR YOU SNUFFED OUT, EVERY ONE OF YOUR ASTROTURFING SHILLS AND BRIBED JOURNALISTS! DIE! DIE DIE DIE!!!

    Aaaaaahhh…

    MDN’s wrong, Apple and Microsoft aren’t gonna trade positions in the near term. The sheer IMPACT of this news is going to make MSFT crash(already happening) and AAPL rise to a point where Microsoft will never be able to clear the gap. That’s right. NEVER.

    And if I’m wrong you’ll have to excuse me because I’m drunk on victory right now

    MW: response. As an Steve Job’s response to Bill Gates. Starts with an F, ends with U.

    Reply

  57. memo:
    To All Apple Employees, Share Holders and Apple Fans.

    Today Apple is larger than Msft. As it has been and always will be MSFT has no class or taste and makes crappy products while we forge ahead and press technology to the limits bringing great products that we’d like to own ourselves to the world.

    Thank You all for Your Support

    Steve P. Jobs

    Reply

  64. The board at MS might have some interesting things to talk about in the next meeting. It should be interesting to see what life boats are deployed off the listing ship that is the MS Ballmer. I predict insane amounts of Win 7 Mobile ads in the next 12 months trying to convince people that their 7th official attempt at a desktop OS is perfect, and the mobile OS of a similar name is exactly the same only better.

    Reply

  66. and to think this climb to the top all started with a little mp3 player called iPod. Apple had always been around since the birth of the PC, but was only praised by fanboys, artists, and those who just wanted something different. Now everyone finally sees that there is a cure for the common PC, MP3 player, and tablet. Apple products just work.

    Reply

  69. Suh-weeeeeet!

    It’s been a long time coming. I’d love to see an interview with Ballmer right about now. If he were anything but a cheap-jack used-car-salesman he’d show a bit of humility about all the mistakes he’s made and all the years of trash-talk about Apple. But that will never, ever happen. Humility and reality are simply not in the Microsoft DNA.

    Reply

  82. Come writers and critics
    Who prophesize with your pen
    And keep your eyes wide
    The chance won’t come again
    And don’t speak too soon
    For the wheel’s still in spin
    And there’s no tellin’ who
    That it’s namin’
    For the loser now
    Will be later to win
    For the times they are a-changin’.

    Reply

  83. Go team go! With a coach like Steve the dream lives on.

    NOW! Don’t get too cocky or complacent. Keep all those innovative products coming and I’ll keep buying them.

    Reply

  87. All this on a day when I can’t update my software on my Windows computer because my Norton anti-virus software thinks my update software is malware and keeps deleting parts of it.

    Wish the software I use was ported to the Mac. It never will be, but I wish it was.

    Reply

  95. Micros**t you forking bastidges. You’ve kept people sucking on your teats for so long most of them are mindless drones with no sense of taste or style. I hope you collapse under your own weight.
    I spend days tearing out my hair over your stupid dumb*ss bullsh*t excuse for an OS. If I could sue you for loss of my time I would.

    I know so many people who have switched to Mac it’s not funny. The latest was just yesterday, he bought a MBP after years of making do with POS PCs.

    I have spent the last few years without touching the hideous carbuncle that is Winblows and I’ll never go back to it.
    I run my own business and have done so WITHOUT the blight of viruses and trojans and worms.

    May the *sswipe Ballmer remain in charge for the next 20 years.

    I feel like buying an iPad just to help Apple widen the gap.

    Reply

  98. Maybe MS will one day get out of the OS business the way that IBM got out of hardware. They will retreat to enterprise software like IBM.

    Interesting about HP divorcing from MS with the Palm purchase. Will others follow? Now may be the time for Apple to provide limited licences.

    Reply

  99. @jax44:

    Beat ’em like they stole something. Oh, wait….

    Here’s to the crazy ones. Congratulations, Apple & Steve. I knew this would happen someday and today was that day.

    Keep it coming.

    Peace.
    Olmecmystic ” width=”19″ height=”19″ alt=”cool smile” style=”border:0;” />

    Reply

  100. Been with Apple since 1982 and my first Apple ][. Seen great innovation from them only to have it be stolen and bastardized. Have been patiently waiting for this day for 20 years.

    Thanks Steve for making such significant contributions to all of our lives.

    Reply

  102. It closed higher!

    What’s amazing about this is that Apple has so much room to grow. The P/E ratio isn’t that high for APPL…20.69. Sure it’s higher than Microsoft at 12.96, but the revenue and earnings *growth* has been incredible and isn’t showing signs of slowing down. The Price to Future Earnings based on existing business for APPL still makes it undervalued by the market.

    To put some context in P/E look at:
    Amazon 53.69
    Adobe 46.0
    Verizon 31.68
    Yahoo 27.74
    Google 21.64
    Apple 20.69
    Cisco 19.38
    Intel 18.94
    Exxon 13.52
    Dell 18.15
    Walmart 13.12
    Microsoft 12.96
    HP 12.96
    AT&T;12.02

    If the market thought Apple was going to grow more than Adobe right now, and bought stock accordingly, Apple would be a half-trillion dollar company.

    But growth in earnings each quarter is making things out of whack for Apple. If you look at earnings annually instead of as quarterly growth, they don’t look nearly as stellar. That’s what you get with a company that’s experiencing 90% quarterly year over year growth in earnings.

    Very soon we’ll see Apple with greater revenue and greater profit than Microsoft, and still growing very rapidly.

    Exxon Mobile will be a blur as Apple passes by to be the first company ever to hit the trillion dollar mark.

    Reply

  105. Awww, MDN: use the original Death Star image–not the digitally redone one.

    Aside from that, I can stop my $X billion and counting messages ” width=”19″ height=”19″ alt=”smile” style=”border:0;” />

    Reply

  108. Reading this site all these years has brought me comfort through the dark times. Nothing beats the feeling of this monumental feat. Thank you MDN and posters for keeping the humor and hope alive. May Apple continue to greater achievements.

    Reply

  110. If I were Steve Jobs, I would go to WWDC and show the Michael Dell quote: “What would I do? I’d shut it down and give the money back to the shareholders.” Followed by a new Jobs quote: “Suck it, Michael!”

    Reply

  116. I’m overwhelmed in joy as we speak as a single drops from my right eye! congrats Apple thank you for showing me the light ” width=”19″ height=”19″ alt=”smile” style=”border:0;” />

    Reply

  123. Macslut wrote:
    To put some context in P/E look at:
    Amazon 53.69
    Adobe 46.0
    Verizon 31.68
    Yahoo 27.74
    Google 21.64
    Apple 20.69
    Cisco 19.38
    Intel 18.94
    Exxon 13.52
    Dell 18.15
    Walmart 13.12
    Microsoft 12.96
    HP 12.96
    AT&T;12.02

    Given that Apple is on pace to earn $14 to $15 this year, the forward PE is only only 16 to 17.

    Reply

  130. Text on Apple’s rearview mirror reads,
    “Objects in mirror are receding faster than one might think.”

    Well, Apple fans and MDN fans, it’s been a great ride so far, and the good news is, this fun journey has only just begun.

    *clink* *clink*

    Reply

  133. Steve Jobs should call Bill Gates and let him know how appreciative he is for Bill’s 1997 150 million dollar investment in Apple and should Microsoft ever need any money… call! ” width=”19″ height=”19″ alt=”red face” style=”border:0;” />

    Reply

  134. Let us all bow our heads in a moment of silence for Microsoft…………. Ballmer may want to reorganize the rest of Microsoft by removing himself. ” width=”19″ height=”19″ alt=”smile” style=”border:0;” />

    Reply

  135. Never seen 7 pages of comments on MDN before… Anyone would think this was unexpected or something!
    Well done MDN – you have created something with this site over all these long suffering years, so hats off to you.
    ” width=”19″ height=”19″ alt=”smile” style=”border:0;” />

    Reply

  139. @Mactony –NO! Balmer must never remove himself from Microsoft. He is our key assist in this whole deal. He’s too good to be true as CEO.

    May Ballmer remain CEO as long as it takes—and it’s going faster than I thought. Hope it gains it’s downward momentum as it rolls to the bottom.

    Anyone think Bill Gates might feel so guilty and inferior about duping the public with all MS’s inferior products that he left buffoon Ballmer in charge on purpose? Bill knew Monkey Boy could kill off Microsoft and the dirty deed would be done long after Bill had ridden off into the sunset. Ballmer’s clueless reign then makes Bill’s years as CEO look mistakenly brilliant by comparison.

    Reply

  140. As a charter Mac user since 1984, I’m in tears Steve returned and triumphed like the humble tortise over the cocky hair. May he continue to live and lead us into the future for many more years to come. Can’t wait to see his victory speech June 7th. Wouldn’t be surprised to see a 5 minute or longer standing ovation.

    Reply

  143. Ten years ago, working at a company that used Macs, a manager there told me not to buy myself a Mac because Apple was going out of business and they would never amount to anything. That manager and the company she worked at are long gone and the Mac that I bought back then still works.

    Reply

  144. Sam Jaffe – Business Week Online
    DECEMBER 11, 2000

    ” Investors may be asking themselves what Apple can do to revive its fortunes. The likely answer, unfortunately, is that Steve Jobs has no white rabbits left in his hat. Apple appears to be facing a dead end in its business growth, the victim of mismanagement and unmitigated hubris. Apple lovers are a loyal bunch, and they’ll probably stick with the company. But Jobs’s dream of becoming the world’s biggest computer-maker will likely remain just that — a dream.”

    Oops.

    Reply

  147. Oh how SWEEEETTT IT IS!!!

    Steve may be the captain of the ship, but he put together a kick-ass crew who all worked together to make this moment happen. The entire Apple ship has the right to be proud of what they’ve done; and they aren’t even close to being done yet.

    Congratulations Steve and crew! 😀

    Reply

  153. I simply couldn’t let this occasion go by without comment.

    I can’t wait to gloat over this with the many MS users I have had to tolerate over the years.

    Mind you, there are a helluva lot fewer of them around these days!!!!!! ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

    Reply

  154. So when is AAPL going to become a DJIA component? It is way overdue at this point. That action would instantly push AAPL higher and also make its price less volatile, as index-based funds will be required to own it.

    Reply

  157. I worked with a guy years ago who regularly hurled taunts like “crApple lover” and “Macs are overpriced, useless toys” and seemingly endless predictions of Apple’s imminent demise. He was a real pain in the ass. He died a couple of years ago.
    That’s o.k. I’ve got a decent shovel and the cover of darkness.

    It’s never too late to gloat. Poor Yorick.

    Reply

  163. Walked into the sales office today brandishing my iphone.
    “Well, it’s official. Apple surpassed Microsoft, and is now the 2nd largest company in US (market cap).”

    “…what… you’re on crack…Google WAY bigger….Dell TEN TIMES BIGGER…bla bla bla…”

    Then I whip out the MDN page 1. Exxon 2. Apple 3. Microsoft 4. Walmart ….

    STUNNED SILENCE.

    Then, “Sam” says, ‘bigger than WALMART?”

    Later- customer service girl comes up to me…. “is it true there aren’t any virus’ for ‘Apple’ “.

    (I rub hands together, lick lips)
    Yeah, she’s cute, but that’s not what I mean.

    Ok, yes it is. NO IT’S NOT. yes it is. NO IT’S NOT….

    Reply

  164. Revenge is a dish best served cold.

    This one’s for you Steve and for all you’ve done to set an example of excellence and conviction, in a mediocre world.

    To the moon apple to the moon!

    Reply

  171. Where the hell is Zune Tang?

    What, no snappy comebacks? Oh wait…

    Your computer crashed at a most inopportune time, didn’t it?
    ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />

    Anyway, congrats to Apple for putting Microsoft in its place; the rearview mirror.

    Long may Ballmer reign.

    Reply

  175. Reason wins over sarcasm. Users in focus instead of the battle of being biggest. “It just works” wins over “One can do almost everything – if one knows how”. Beauty wins over Cheap, but maybe most importantly – the battle for perfections wins over settling for less.

    Thank you Steve Jobs. You are a shining star in our times and your company and its employees are amazingly great.

    Reply

  176. Ten years ago, working at a company that used Macs, a manager there told me not to buy myself a Mac because Apple was going out of business and they would never amount to anything. That manager and the company she worked at are long gone and the Mac that I bought back then still works.

    Similar experience. Was told by my mentor that I should stop pushing Macs as they were “dead technology”. And yet here I sit, surrounded by two MBPs, a venerable G5 PowerMac, multiple iPods (all running their own versions of the same OS) and an Airport Extreme.

    Tony (AJ) Farrington is probably now well into retirement, but if anyone knows him, please send him my regards.

    Reply

  179. I’ve been a Apple user as a child of the ’80s using a IIE in grade school, a IIGS(still working) at home, and my first Power Mac 7500 as a college student in 1995. During the dark years of the mid-late ’90s, I could never have envisioned this day.

    Steve Jobs did.

    Thank you Steve, for making my emotional investment in Apple worth something today. As I watch my 3 year old use my iPad to practice learning her letters and numbers, I am thankful for your leadership and genius over the last 34 years.

    Congratulations and Thanks.

    Reply

  180. Steve Ballmer…you know that bitter taste in your throat, that’s kind of wrapped around your uvula? That’s what’s left of your pride. ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />

    Reply

  181. You market cap weenies just don’t get it. Market cap is meaningless, unless you’ve got good products, a good pipeline, loyal customers, great execution and excellent management.

    Oh, wait.

    Reply

  184. Stay unconcerned, Franken-ballmer.

    Microsoft CEO Unconcerned With Apple Market Cap

    “My focus is on … what we should be doing to our product line, where do we go, how do we make products more innovative,” [Ballmer] said in response to a question on Apple racing past it in market value.

    “It’s a long game, we have good competitors … we too are a very good competitor,” Ballmer said. “We are executing very well and that is going to lead to great products and great success.”

    http://abcnews.go.com/Business/wireStory?id=10757795

    That’s priceless. Pun intended.

    Reply

  185. @ampar – thanks for the link. Ballmer seems… Subdued. He’s not laughing derisively or making cracks about “rounding errors” today, just talking about how great things WILL BE for Microsoft. You know… Later on.

    @ always right – great “core a apple” reference. Always loved that bit.

    Reply

  186. Thursday update: Judging by this morning’s MSFT trading volume it looks like the institutions have stepped in big time to stem the avalanche. Protecting their portfolios I guess but it’s not going to be sustainable.

    Reply

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