It was a move that was long awaited by Apple Inc., retarding the momentum of Microsoft Corp. and its products, the iPhone maker has outflanked its rival to become the world's biggest technology company in terms of market value.
The Cupertino, California-based company's market capitalization surpassed its long time competitor Microsoft on Wednesday, thus making Apple the biggest tech giant by stock market value.
At Nasdaq Stock Market trading, Apple's total share value stood at US$222.1 billion, outdoing Microsoft by nearly US$3 billion. Microsoft's share value was $219.2 billion.
While Apple's shares closed down 0.4 percent at $244.11 on Nasdaq, Microsoft's shares plunged 4 percent, closing at seven-month low of $25.01.
With the market value of US$222.1billion, the iPhone maker has become the second largest U.S. stock, behind Exxon Mobil Corp., whose market value is $278.6 billion on the New York Stock Exchange.
Also, Apple last month outdid Wal-Mart in terms of market capitalization.
With Steve Job's leadership, Apple diversified. Apart from making Macintosh personal computers, the company explored its potential in devices like Pod music player, iPhone, and now iPad tablet, which have dominated the technology market.
Apple's stock resurges
Today Apple's shares are 10 times more in value than their worth 10 years ago. If one recalls, the company was on the brink of bankruptcy when Steve Jobs took the reins of Apple in 1997.
With Steve's leadership, Apple diversified. Apart from making Macintosh personal computers, the company explored its potential in devices like Pod music player, iPhone, and now iPad tablet, which have dominated the technology market.
Apple sold more than 1 million iPads in the nation after it was launched April 3. Now the tech giant is rumored to unveil new smartphone at its Worldwide Developer’s Conference, starting June 7.
Michael Obuchowski, chief investment officer for First Empire Asset Management n Hauppauge, New York, was quoted by BusinessWeek as saying, “With their relentless pursuit of technological and design innovations -- driven largely by Steve Jobs -- Apple has become the dominant technology company of this decade.”
Is Microsoft losing grip on the technology market?
While Apple has managed to turnaround losses over the decade, Microsoft has not been able to retain the growth it witnessed in the 1990s.
Its shares are down 20 percent compared to stock value 20 years ago.
Though Microsoft is still ahead of Apple in terms of sales, its market share plummeted to 15.7 percent in January 2010 from 19.7 percent in October 2009, according to data released by comScore, a marketing research company.
Taking about Microsoft, Yair Reiner, an analyst at Oppenheimer & Co., told Los Angeles Times that the company has been the “workhorse of the PC revolution” but now it seems that “horse is running out of new tricks."