Apple Now Worth more than IBM

Mon, 10/22/2007 - 17:04 — Quincy Pince-Nez

After the good news today Apple's stock price is going up, up, up into the $186 range - putting its market cap($161 Billion) above IBM ($156.45 Billion) for the first time in history.

Not bad Apple.  Not bad.

 

Thanks to Wired or reminding us of this image:

and Apple 2.0 for reminding us who is the big brother now!

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Comments

Wow. That is amazing. Its so

Wow. That is amazing. Its so hard for IBM to make any money. So hard to grow any revenue. But look at Apple!

the last time i checked, IBM

the last time i checked, IBM still makes more money than Apple, much much more

revenue? yes? Not a 33%

revenue? yes? Not a 33% margin tho. and profits of a billion a quarter.

and market share is about future growth potential. The market has spoken

IBM's gross margin is over

IBM's gross margin is over 40% (and net profits 2.4 billion a quarter). Anticipated growth is the only thing that Apple is trading on.

Well, what I see is U$ 151

Well, what I see is U$ 151 billion, not U$ 161 billion... maybe I am wrong.

Yes you're wrong. Market cap

Yes you're wrong.
Market cap is $151 billion at the closing price of $174. The stock is up $12 in after hours, hence the $161 billion.

Hopefully, if Apple gains

Hopefully, if Apple gains more market-share, the price of their electronics will go down. Or will the opposite happen?

There is nothing wrong with

There is nothing wrong with Apple's pricing.  Its fair and competitive.  If it wasn't, people wouldn't buy it.

Whether people are likely to

Whether people are likely to buy a product does not really correlate with its competitive pricing, but rather with its perceived value.  I would not really call Mac computer pricing "competitive" considering its competitors sell similar-spec'd systems for 50-75% of the price.  But people believe that Mac computers have a high value and are willing to pay a premium as a result.

 

>> I would not really call

>> I would not really call Mac computer pricing "competitive" considering its competitors sell similar-spec'd systems for 50-75% of the price.

I used to mistakenly make such assumptions too. But upon closer examination, er, nope. That isn't actually the situation at all. Seriously, what comparison are you holding up? Not that there are a lot of products that compare straight across to the Mac line. But where they do, the Macs are clearly cheaper. Bizzare but true. *shrug*

if you think this you don't

if you think this you don't understand apple, they are still a luxury brand and that's the way they want it. Products before shareholders as Steve put it.

does ibm still make pc's?

does ibm still make pc's? dah! strip away the products and you have two totally different companies. exxon makes a lot of money, too. but they do it differently. apple has three things: the best computers, the best phone and the best music player. they have a lot of other stuff, too.

until i can find something better, i will stick with apple.

Who remembers when Jobs came

Who remembers when Jobs came back to Apple and stated "whoever wins the digital home, wins the war". He was very smart pushing the iPod to the next gen because they are the future buyers.  He is an incredible strategist and whether you like Apple products or not, considering where he brought them from in the 90s, he is doing well. I have been involved with Apple and worked as a service manager for apple in the late 80s and without him, they wouldn't be around today.

I think that as mesh networking starts to become mainstream, with the eventual displacement of major servers on the backbone, you will see Apple start to see logarithmic growth.  If Jobs keeps this up, Apple will take back higher education and become a player in the corp space.   Who would have believed it would have originated from a mp3 player.

 

You're right, they do make

You're right, they do make different products.  IBM sold their laptop devision to the chinese based company Lenovo.  Now IBM just fucuses on business solutions, like servers and the such.  Different companies.  BTW i had a harddrive failure on an IBM at the airport.  Dropped if off at an IBM authorized dealer in the airport before my flight.  When i got off the plane, there was an IBM representative waiting for me outside my gate with fixed computer in hand with no loss of data.  He apologized for inconvenience too.  Tell me thats not customer service.  Lets see mac do that (genius bar doesnt count, cause it just flat out sucks.)

I blame virtualization and

I blame virtualization and the Internet, with some liberal seasoning of style.

Microsoft better be looking over their shoulder too:

 

Cheers!

BW

This is interesting from a

This is interesting from a 1984 perspective, but since about 1990 the real question has been can Apple ever pass Microsoft

Markets aren't infallible in

Markets aren't infallible in their estimates.  Look at Enron.  That said, for the record, Google's market cap is $210.93B.  For all intents and purposes, they make a website.  By the way, they're also less than 10 years old. 

Here's another article along

Here's another article along the same lines: http://fishtrain.com/2007/10/23/apples-stock-28x-in-45-years/

To counter Apple's wildly

To counter Apple's wildly sucessful iPhone, IBM has announced the development of the IBMphone. It will weigh five pounds and have a rotary dial.

Why all the focus on market

Why all the focus on market cap? Enterprise value is the accurate measure of what a company is worth. IBM still has AAPL by a lot in that metric. I love Apple products but with their hardware -driven margins and current EV it is hard to paint a picture of valuation sustainability...

http://finance.yahoo.com/q/ks?s=IBM

 

 

All i know or care about is

All i know or care about is that i bought 4000 shares of APPLE when it was 16.95 or so a share....and im laughing all the way to the bank...BOOOYA!

Information businesses

Information businesses generate profits primarily from the resale of intellectual property and include movie studios, publishers and packaged software companies.

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