It replaced Exxon Mobil as the most valuable company for a while until their places were interchanged due to the day’s trading. In valuation terms, Apple is way ahead of tech giants like Microsoft and Google.
Microsoft is valued at $249 billion, while Google is at a much lower $146 billion. That means if the valuations of Microsoft and Google were combined it would be $395 billion. That is still below Apple’s $413 billion.
Apple’s Incredible Year
- Apple has continued its good performance from last year, when it overtook Microsoft in terms of profitability.
- More than just the market valuation, Apple also has cash reserves of almost a $100 billion. That means if tomorrow the Apple board decides it could buy out Dell and HP together and still have some money left.
- It also has enough money to completely buy out the social network Facebook. As Facebook has not had a IPO, its market value cannot be easily calculated but it is estimated to be valued around $90 billion.
Less is more
- The most amazing part of Apple’s growth in the past 2 years has been that it does not have a host of products and services. Products like iPhone, iPod, iPads and their App store is what is driving all this revenues.
- Also considering it sells devices which are considered expensive and a bit of a luxury, it still has grown despite the economic recession in the US and Europe. It seems Apple is recession proof.
It seems Steve Job’s philosophy of concentrating on a handful of products instead of several, has paid off BIG. Also with iPhone 5 and iPad 3 expected in the year 2012, it could mean there is no stopping Apple at least for the next couple of years.