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Apple Stock Hits An All-Time High

Posted by: Peter Burrows on October 21

Yes, it’s true. Apple’s stock at the moment sits at the rarified price of $205.04—higher than the former best of $202.96 set on Dec. 27, 2007. Amazing, considering the state of the economy. But understandable in many ways, given the company’s blockbuster fourth quarter and the huge runway it has for further growth in existing (Mac, iPhone) and expected (tablets) markets.

apple stock chart.gif

So where does this put Apple in terms of overall value, versus some other leading tech companies? Here’s a quick look:

Microsoft — $236 billion
Apple — $183 billion
Google — $176 billion
IBM — $162 billion
Cisco — $140 billion
HP — $115 billion
Oracle — $111 billion
Dell — $30 billion

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Reader Comments

David Steward

October 21, 2009 02:01 PM

Can't wait for positions 1 & 2 to be reversed. Perhaps Windows 7 will help with the reversal.
David

Nick

October 21, 2009 02:01 PM

So this means apple could use CASH to buy dell and scuttle the company? Eat your words Mr. Dell....

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October 21, 2009 03:39 PM

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Hells Bells

October 21, 2009 05:17 PM

How much money did Microsoft give Apple in the 90s, again, to keep them from going under?

How many times was Steve Jobs fired?

How much money does Microsoft make on Apple's success?

What percentage of the market is Mac OS?

Is it true that 80% of Apple products are bought by existing Apple customers?

anon

October 21, 2009 05:44 PM

@H.B.

Your last two are really good points. Apple still has plenty of market share to gain and each new Apple user tends to spend much more on Apple products then do PC users on MS products. It should not take too long for Apple to take over the #1 spot.

Peter

October 21, 2009 05:44 PM

@Hells Bells: to answer your questions.

1. Microsoft invested a relatively small amount of money (~100m) in non-voting Apple stock in exchange for Apple to drop litigation against Microsoft for a number of potential patent breaches. Microsoft sold this stock for a small profit a long time ago.

2. Jobs left the company once. He was never fired, but did have a rocky relationship with the CEO he hired to the company that resulted in him being sidelined.

3. Ask the Mac Business Unit at Microsoft, I expect they do very well relatively, but it's not a truly significant part of Microsoft's earnings. In reality only Windows and Office are.

4. The Mac is approaching around 10% marketshare by units. But the profitshare is estimated to be around 35%. Get that - 35% of ALL profits from the sale of computers goes to one company, Apple! Marketshare by units isn't a very good metric, Apple doesn't actually want or need most of those customers.

5. No. In fact over 50% of Mac purchasers are first time buyers.

anon

October 21, 2009 05:45 PM

@H.B.

Your last two are really good points. Apple still has plenty of market share to gain and each new Apple user tends to spend much more on Apple products then do PC users on MS products. It should not take too long for Apple to take over the #1 spot.

Bob Dylan

October 21, 2009 05:50 PM

@ Hells Bells

-Microsoft gave Apple $205 million.

-Once

-Not much at all.

-US market - almost 10%; Worldwide - around 5%

-Nope. 50% of Apple Store visitors are new to Mac and new to iPod.

Bob Dylan

October 21, 2009 05:50 PM

@ Hells Bells

-Microsoft gave Apple $205 million.

-Once

-Not much at all.

-US market - almost 10%; Worldwide - around 5%

-Nope. 50% of Apple Store visitors are new to Mac and new to iPod.

Simon

October 21, 2009 05:50 PM

Hells Bells; What is your point? Had Microsoft not temporarily invested in Apple stock back in 1998 (it's all been bought back now) they certainly would have been broken up by the DoJ. Does it matter how many times Jobs was sacked (once BTW)? In fact it was Sculley's (the CEO that sacked Jobs) biggest mistake. He may have been hard work, but Jobs clearly knows what he is doing. How much money does Microsoft make off Apples back - how many people that own Windows PC's se an iPod or iPhone as their PMP? Clearly market share financially in the computing market is an irrelevance, and so what if 80% of the products are bought by existing customers—there is a lot to be said for brand loyalty. I'm sure that Microsoft enjoy similar stats there.

Simon

October 21, 2009 05:50 PM

Hells Bells; What is your point? Had Microsoft not temporarily invested in Apple stock back in 1998 (it's all been bought back now) they certainly would have been broken up by the DoJ. Does it matter how many times Jobs was sacked (once BTW)? In facy it was Sculley's (the CEO that sacked Jobs) biggest mistake. He may have been hrd work, but Jobs clearly knows what he is doing. How much money does Microsft make off Apples back - how many people that own Windows PC's se an iPod or iPhone as their PMP? Clearly market share financially in the computing market is an irrelevance, and so what if 80% of the products are bought by existing customers—there is a lot to be said for brand loyalty. I'm sure that Microsoft enjoy similar stats there.

Abhi Beckert

October 21, 2009 05:54 PM

Hells Bells:

$150 million

Once

I don't think that's documented anywhere, but i'm sure it's pennies

"percentage of the market" depends how you measure it. It's somewhere between 3% and 25%.

About 50% of macs sold are to people who never owned a mac before.

Zaph

October 21, 2009 05:59 PM

@ Hells Bells

"Sour grapes" or just scared?

Hells Whistles

October 21, 2009 06:06 PM

Answers to Hells Bells' questions:

1. Microsoft gave Apple $150 million in 1997 to settle disputes between their operating systems.

2. Steve Jobs was never fired from Apple.

3. Microsoft makes -$320 per customer off of Apple's success.

4. Mac OS makes up anywhere from 100% to 0% of the market share depending on your criteria.

5. No.

K. Akil

October 21, 2009 06:52 PM

In Response to Hells Bells... You have your facts confused. I'll respond to your inaccurate comments point by point.

1. Microsoft gave Apple $100 million. It was essentially a payoff to Apple so that Apple would drop the patent dispute over Microsoft STEALING the Mac OS look and Feel for Windows 95. It was called an investment so that MS could hide the fact that they settled with Apple.

2. Steve Jobs was never fired from Apple. He was essentially pushed out of Apple through a series of events, but he was not "Fired". And this happened ONLY ONCE.

I'm not sure what your point is here.

3. Currently the Mac OS accounts for 8-9% of the computer market, but accounts for a STAGGERING 35% of the profits made by computer manufacturers!

Apple is not competing with MS. That stopped when Jobs came back in 1997. Jobs declared the PC Wars over in 1997.

Jobs decided that he did not want to play a game that Apple could not win. So Apple reinvented the game and now they play by their own rules. And it's a Game that Apple can Win, and THEY WIN BIG!

Apple is providing extremely high value at great prices. HP, Dell, and Microsoft are providing Low cost, and low value. This equals high sales and small profits!

If you don't believe it you should read Michael Dell's recent comments about finally having an OS (Win 7) that PC users can again be proud of.

4. No it is not true that 80% of Apple's products are bought by existing customers. Jobs is a smart guy and he figured out long ago that he doesn't have to sell to the base. The base is going to buy anyway. Since the iMac was introduced Apple has been selling to those who have never owned a Mac.

50% of all customers in the Apple Retail stores stated that they were making their first Mac purchase. Also more than 50% of iPod customers are buying iPods for the first time.

The US Military is now buying Macs in bulk because of their security!

A survey of teenagers found that 25% of them already owned an iPhone and that about 25% of the rest were planning to buy one soon.

If you don't think that that iPhones and iPod touches will turn in to sales of Macs you're crazy.

Also don't forget about all of the MS developers and companies that are buying Macs to make apps for the iPhone.

Apple is not interested in Market Share for market share's sake. Apple is interested in the HIGH END computer buyer's market share, because High end buyers mean higher profit margins and higher profit margins mean higher profits per quarter.

Ask Michael Dell how the low end, bulk PC sales strategy is working for him.

Joseph

October 21, 2009 06:57 PM

Microsoft has no innovation, they are merely an H1b shop that produces low quality software.

Sam

October 21, 2009 08:25 PM

@Joseph

You think MS has no innovation? Heard of AJAX? That all come about because circa 1999, MS put the "Microsoft.XMLHTTP" ActiveX object in IE (which has since been renamed to XMLHttpRequest as a native object to the browser). AJAX existence is entirely predicated on this object and perhaps the most defining aspect of "web 2.0" Also, heard of things like Natal, or Surface? Those seem pretty innovative.

Joseph

October 21, 2009 09:20 PM

AJAX is basically JavaScript. Let me guess, Microsoft innovated zeros and ones too.

Andrew

October 21, 2009 09:21 PM

@Sam

Right, MS did create an XMLHttpRequest object, but no one took advantage of it until Google came around with Google Suggest. Even before that, AJAX-like functionality was hacked together by keeping the connection alive (that's how GIF-like animated pictures worked pre-GIF support).

Saying that MS somehow invented AJAX isn't really true. That created an object that made it easier to techniques previously done, but it wasn't until someone else came along and actually saw a use for it that AJAX as a technique was invented.

Bill Gates

October 21, 2009 09:58 PM

Microsoft did invent zeros and ones. Don't forget to buy Windows 7.

nfr

October 21, 2009 10:47 PM

wow - Aside from all the bias here, just look at the innovations of each company and you can truly see what both have accomplished versus what one has not. I'm sorry to say but Apple wins on innovative products here. Obviously, investors tend to agree. Microsoft's stock has been stagnate for years, for good reason. Look at Access 2007, it's the same Access as version 95 except it has a different look. This is slow progress and unfornately Steve Ballmer only cares about selling anything rather than wow'ing it's buyers with greatness. It's a typical car salesman attitude. They don't really care about the car, they just want to sell it to you to make a sale.

I do think Windows 7 is a great product but I also tend to think their was so much more opportunity that Microsoft could have improved and innovated on but missed the opportunity. I don't hate Microsoft, I just think they can do better but right now they don't see it.

Marketing Dept. Inc.

October 22, 2009 12:59 AM

Yes, Apple has a 10% market share in the overall PC market. But.
Apple don't compete in the crapbook and low end computer segment. Focusing on the high end market where Apple actually competes (margin 36%).

What is interesting to note is, that the high end part is apperently growing faster than the low end market. Apples Mac sales increased by 17% (laptops +37%) in Q3 so the market movement is a fact.

fredonas

October 22, 2009 01:40 AM

Apple arguable made M$ what it is by contracting them to write software for the new Mac platform and thus enabling them to use this knowledge to create Windoze and Office. Before that M$ didn't make user apps just DOS and BASIC.

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SkateNY

October 22, 2009 03:28 AM

FYI...MSFT "gave" Apple a settlement over a lawsuit in which MSFT blatantly stole Apple's UI. With all their resources, MSFT would have trampled Apple had they believed they had even have a chance with a jury.

Secondly, Microsoft is Apple's largest and lucrative software developer.

Think about this before writing something stupid.

SkateNY

October 22, 2009 03:29 AM

FYI...MSFT "gave" Apple a settlement over a lawsuit in which MSFT blatantly stole Apple's UI. With all their resources, MSFT would have trampled Apple had they believed they had even have a chance with a jury.

Secondly, Microsoft is Apple's largest and most lucrative software developer.

Think about this before writing something stupid.

ads

October 22, 2009 04:05 AM

@ Hells Bells

- How many times have you defragmented your PC's HD?
- How many times have you rebooted?
- How many times have you reformatted and reinstalled?
- How much more expensive did you pay for your Windows software?
- How many years were you stuck with Windows XP?

Enlightenment

October 22, 2009 06:13 AM

Remember the Apple III.
Remember the Apple Newton.

Only suckers and idiots buy stock at the top!

There were 1 BILLION phones sold last year worldwide and Apple was only a tiny percentage of it.

Long live Android!

Enlightenment

October 22, 2009 06:13 AM

Remember the Apple III.
Remember the Apple Newton.

Only suckers and idiots buy stock at the top!

There were 1 BILLION phones sold last year worldwide and Apple was only a tiny percentage of it.

Long live Android!

Enlightenment

October 22, 2009 06:14 AM

Remember the Apple III.
Remember the Apple Newton.

Only suckers and idiots buy stock at the top!

There were 1 BILLION phones sold last year worldwide and Apple was only a tiny percentage of it.

Long live Android!

LongMemory

October 22, 2009 10:08 AM

@Hells Bells:

It was Apple the first one to help Microsoft when it needed a BASIC interpreter in the 70s.

@ Enlightenment:

Also remember the Cube.

Ask Nokia about how good 2009 have been.

And what percentage of Android-based phones?

And Apple and RIM take 35% of the ENTIRE phone market profits (expected to grow to 58%)

http://www.businessinsider.com/apple-and-rim-have-3-of-cell-phone-market-but-35-of-profits-2009-7

Jaded Consumer

November 2, 2009 05:48 PM

Apple's improvement in share is in part a likely result of MSFT decreasing the competitiveness of competing OEMs' products through increased licensing costs. Apple's appetite for high-end parts has made following it tricky at least since the 1.8" hard drive shortage it caused with the introduction of the iPod. Copying Apple's behavior isn't the same as duplicating its strategy. Apple is likely to increase its dominance.


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A blog on the daily doings of Apple and the many companies in its orbit, with insight and analysis by two longtime Apple-watchers BusinessWeek Senior Writer Peter Burrows and BusinessWeek.com Senior Technology Writer Arik Hesseldahl.

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