The moment came when Apple surpassed Microsoft in Market Cap [*].
A few numbers:
Market Cap: Microsoft at $219 billion – Apple at $222 billion (yesterday)
Revenue: Microsoft at $58.4 billion – Apple at $42.9 billion
Net income: Microsoft at $14.6 billion – Apple at $5.7 billion
Cash: Microsoft at $39.7 billion – Apple at $23.1 billion
Microsoft is still has bigger earnings, but Apple has the momentum. Apple still sells computers, but twice as much revenue is coming from hand-held devices and music. And smartphone sales are growing faster than PCs.
Worse for Microsoft, analyst perceived that “The battle has shifted from Microsoft against Apple to Apple against Google,” as said Tim Bajarin, a technology analyst following Apple.
Via Silicon Alley Insider. The great turnaround of Apple illustrated in a chart.
Since the iPhone launch in 2007 Apple has been getting closer to Microsoft faster and faster. The iPad “effect” is closing the final gap. It is only a matter of time that Apple will surpass Microsoft in market cap. Apple’s “reinvention” of the phone is paying off.
When Microsoft announced Windows Phone 7, a newspaper headline read “Microsoft follows Apple and Google and moves into Smartphones”. It is a pity (for Microsoft) the reporter had not noticed that Microsoft had Windows Mobile phones for several years before the iPhone…
We can call it the “delayed” disruption. It has 3 phases, that can be illustrated in the chart above showing the decline of postal mail volume.
1. Hyped Prediction. End of 90s with the Internet boom, people predict that the end of mail will soon happen.
2. False Reality. A few years later in 2005, people say mail will never die, all the opposite Internet is increasing the use of postal services, as the growth in mail volume shows.
3. Disruptive change. The hyped predictions become a reality, and mail drops in free fall.
The same can be said of CD sales, newspaper and magazines, and soon will be said of ebooks.
And the same is happening on TV and Internet TV, as the recent debate on the Future of TV shows, when voices say that TV is weathering the Online Video storm better than Music or Newspapers. The good news for TV is that hey have some precedent cases they can learn from and adapt. But the disruption will come… only maybe a bit later.