Microsoft Overtakes Apple as World's Most Valuable Company

[MacBH928]

Why is Microsoft so valued?
They hardly sell hardware, their Windows is sold at OEM prices, desktop sales are declining, I am guessing its their cloud services?

meanwhile Apple has high margins or airpods, iphones, all macs, M1, itunes sales, apple watch, ipads, Apple music... i just dont see that much from Microsoft?!

 

[Abazigal]

Why is Microsoft so valued?
They hardly sell hardware, their Windows is sold at OEM prices, desktop sales are declining, I am guessing its their cloud services?

meanwhile Apple has high margins or airpods, iphones, all macs, M1, itunes sales, apple watch, ipads, Apple music... i just dont see that much from Microsoft?!

I think it's because Microsoft is basically selling a recurring subscription (office, cloud services), which is a more predictable source of income that makes it easier for investors and analysts to analyse. It's clear the world isn't moving away from windows or from office software anytime soon.

In contrast, it's always more challenging to estimate how well a new Apple product will do, how profitable it is, or whether it will be subject to supply constraints. For some reason, Apple is perennially an iPhone flop away from doom, or people are going to wake up one day realising that apple products are nothing special, or some other contrived doomsday scenario.

So in a sense, Apple's finances are way more volatile than Microsoft's, and that's what the market hates. Though it constantly annoys me how this type of news is constantly being spun as Apple missing analysts expectations, and not the analysts failing to do their jobs properly. Imagine running a financial company, and the companies you invest in constantly fail to meet your analysts predictions, and so you blame the companies! What a joke!

 

[JimmyHook]

Market capitalization and share prices are rarely rational, sober reflections of reality. Don’t read too much into this, even when Apple is on top (which I expect them and MS to trade places frequently)

 

[Hjack2111]

But isn't Microsoft bolstered by its web services division?

Money still spends, the surface line still a billion dollar business actually and Xbox makes money off services

 

[Hjack2111]

I think it's because Microsoft is basically selling a recurring subscription (office, cloud services), which is a more predictable source of income that makes it easier for investors and analysts to analyse. It's clear the world isn't moving away from windows or from office software anytime soon.

In contrast, it's always more challenging to estimate how well a new Apple product will do, how profitable it is, or whether it will be subject to supply constraints. For some reason, Apple is perennially an iPhone flop away from doom, or people are going to wake up one day realising that apple products are nothing special, or some other contrived doomsday scenario.

So in a sense, Apple's finances are way more volatile than Microsoft's, and that's what the market hates. Though it constantly annoys me how this type of news is constantly being spun as Apple missing analysts expectations, and not the analysts failing to do their jobs properly. Imagine running a financial company, and the companies you invest in constantly fail to meet your analysts predictions, and so you blame the companies! What a joke!

Surface division is a 1.5 billion dollar business alone, perception is not reality the iPhone and iPad may be big business but windows is the dominant pc operating system by a large margin and they make profit off every PC sold by the biggest PC manufacturers before you get to billions off of ms365 subscriptions and then their biggest business which is Azure which makes an absurd amount of money in cloud computing.

 

[Abazigal]

Surface division is a 1.5 billion dollar business alone, perception is not reality the iPhone and iPad may be big business but windows is the dominant pc operating system by a large margin and they make profit off every PC sold by the biggest PC manufacturers before you get to billions off of ms365 subscriptions and then their biggest business which is Azure which makes an absurd amount of money in cloud computing.

Apple makes a billion dollars a day. For a company the size of Apple or Microsoft, surface revenue is basically a rounding error.

I would still continue to bet on Apple every time because Microsoft hasn’t really shown that they are able to leverage on their windows monopoly to gain a foothold in any other market. Conversely, Apple should be able to use their iPhone market share to get a strong share of the wearables market, which is where I believe their next major source of growth is going to come from.

Apple’s just a more exciting, dynamic company all round.

 

[Skewlovevism]

I've been using Win11 for a little while now, it's lovely.

Actually in my experience Windows has been rock solid over the last few years. More-so than the MacOS and now that it's pretty much just as nice.
I have the best of all worlds, Apple hardware, MacOS and Windows in Parallels when I want it.

Glad you have great windows experience for years. I wish I could say the same thing, as I am starting to lose my hair, while using windows 10 in our office.

I am European, living in Japan. When I switch windows from Japanese to English, most of the software (including build in calendar) stays in Japanese. Then I switch back to Japanese, and couple days later, calendar becomes English!?!
Keyboard inputs randomly locks, cannot which keyboard by key or shortcuts, update starts without me confirming them, so I cannot use machine for many minutes, starting a computer takes ages, …
Endless problems.
I understand it might be setting or firewall … and other stuff, but this is far from ideal or even normal, user friendly.

So, I quite often bring my Air to office, to manage most of my workflow.
I wish our company would allow us to have Mac instead, but they don’t.

 

[grkm3]

Microsoft is a software company and doesn't have to worry about supply chain. If the US dollar inflates then they just raise the price of their software / services by a corresponding amount. Apple doesn't have that luxury.

Really try finding a new Xbox in a store lol

 

[danielsutton]

Microsoft has overtaken Apple as the world's most valuable company, making the Cupertino tech giant the second most valuable in the world, followed by Saudi oil giant Aramco.

Microsoft now sits at a market value of $2.46 trillion, while Apple stands at $2.43 trillion. Apple's drop in market value follows what Wall Street analysts and experts call disappointing quarterly earnings results yesterday, despite solid growth in product categories.

A report earlier in May highlighted some of the ways that Microsoft and Apple will become increasingly more competitive against each other. As both companies continue to invest heavily in augmented reality and artificial intelligence, the rivalry is expected to grow in the years to come.

Article Link: Microsoft Overtakes Apple as World's Most Valuable Company

Apple needs to start growing its installed base of Macs. They have consciously decided for decades that profit margins are more important than sales numbers, and this has been a big barrier to greater adoption. Now that Apple is transitioning away from Intel processors, they are able to save a deal of money, which they could pass on to customers in the form of lower prices. They don't need to sacrifice much of anything, and in fact, they would end up making even more money because unit sales would increase. More sales plus more money would please Wall Street, and it would lead to greater valuation. Apple needs to stop selling only to creatives. Enterprises can benefit tremendously from Apple's ethos. Apple needs to sell to businesses as well as to consumers! There is room for Apple in the enterprise as well as in the home.

 

[BanjoDudeAhoy]

When was the last time that you handed money over to Microsoft, and it wasn’t done reluctantly? Maybe xbox/games?

Office 365 and game pass, technically every month because they’re subscriptions. Both rather good value in my book.

I then choose to use Office on my Apple hardware because (like others have noted) it is possible to like products from multiple companies.

 

[Brandon916]

Apple makes a billion dollars a day. For a company the size of Apple or Microsoft, surface revenue is basically a rounding error.

I would still continue to bet on Apple every time because Microsoft hasn’t really shown that they are able to leverage on their windows monopoly to gain a foothold in any other market. Conversely, Apple should be able to use their iPhone market share to get a strong share of the wearables market, which is where I believe their next major source of growth is going to come from.

Apple’s just a more exciting, dynamic company all round.

MS stocks has been beating apple for this past yr easily. MS is the 2nd leader in cloud. Business accounts for huge revenue VS just day to day consumers. That's like saying all Google does is ads but they are making billions from it.

Apple next growth isn't wearable. It's the car business. They're trying to get into streaming but is way way way behind.

 

[Abazigal]

MS stocks has been beating apple for this past yr easily. MS is the 2nd leader in cloud. Business accounts for huge revenue VS just day to day consumers. That's like saying all Google does is ads but they are making billions from it.

Apple next growth isn't wearable. It's the car business. They're trying to get into streaming but is way way way behind.

No doubt their core business is extremely profitable but they are just not making much waves these days. What other company do you think can command headlines simply by announcing a cleaning cloth? Google is shuttering services left and right, Microsoft's smartphone foray failed, and neither of them really has an ecosystem in the same breath and depth that Apple does.

These companies will be around for many years to come, and I don't wish for any of their early demise. I just don't feel any passion for Microsoft products when I am all in on the Apple ecosystem and my work-issued windows laptop runs like crap. Office works but it just feels so bloated compared to google docs, and I feel like half the time is spent grappling with alignment and formatting issues. In contrast, iWork's has like maybe 10% of the functionality of Office, and that's really the 10% that I will likely ever need, but I will never be able to make it work in a windows dominated work environment. Google has these few core products (chrome, drive, search, maps, YouTube), but everything else feels like it's perpetually in beta stage, and I really only use those for work (use maps, DuckDuckGo and safari on my apple devices).

I have spent close to the last decade teaching from an iPad in the classroom, because windows tablets were crap. Since then, I have gone all in with the apple ecosystem and not looked back since. It ultimately comes down to me using apple products because I want to, and using everything else because I have to.

I also wish Apple would bring more of their services to my country. I would love to apply for an apple credit card, and sign up for Fitness+, and use Siri on my Apple TV.

 

[Hjack2111]

Apple makes a billion dollars a day. For a company the size of Apple or Microsoft, surface revenue is basically a rounding error.

I would still continue to bet on Apple every time because Microsoft hasn’t really shown that they are able to leverage on their windows monopoly to gain a foothold in any other market. Conversely, Apple should be able to use their iPhone market share to get a strong share of the wearables market, which is where I believe their next major source of growth is going to come from.

Apple’s just a more exciting, dynamic company all round.

 

[alien3dx]

Why is Microsoft so valued?
They hardly sell hardware, their Windows is sold at OEM prices, desktop sales are declining, I am guessing its their cloud services?

meanwhile Apple has high margins or airpods, iphones, all macs, M1, itunes sales, apple watch, ipads, Apple music... i just dont see that much from Microsoft?!

lol. Microsoft not targeting hardware selling but services

cloud service - azure / icloud (apple) not freee
office - 365 office / page (apple) (free)
vsstudio(microsoft) / xcode (apple)(free)
enterprise os (microsoft) / apple nada
microsoft phone ? / iphone
xbox ( gaming ) / apple arcade ( hmm aaa )

the good of microft they get lots of vendor and support while apple software pretty limited even m1 not all is compile to universal apps.
** my apps is universal so m1 existed.

microsoft more on enterprise everywhere. while apple more only major on usa consumer .

 

[Hjack2111]

They may be more exciting or dynamic but the dollars spend the same. Microsoft dominates the enterprise/backend infrastructure/cloud computing and apple is consumer hardware/mobile services but the money spend the same who cares I’m sure neither is crying over that trillion dollars they don’t pay taxes on

 

[Hjack2111]

No doubt their core business is extremely profitable but they are just not making much waves these days. What other company do you think can command headlines simply by announcing a cleaning cloth? Google is shuttering services left and right, Microsoft's smartphone foray failed, and neither of them really has an ecosystem in the same breath and depth that Apple does.

These companies will be around for many years to come, and I don't wish for any of their early demise. I just don't feel any passion for Microsoft products when I am all in on the Apple ecosystem and my work-issued windows laptop runs like crap. Office works but it just feels so bloated compared to google docs, and I feel like half the time is spent grappling with alignment and formatting issues. In contrast, iWork's has like maybe 10% of the functionality of Office, and that's really the 10% that I will likely ever need, but I will never be able to make it work in a windows dominated work environment. Google has these few core products (chrome, drive, search, maps, YouTube), but everything else feels like it's perpetually in beta stage, and I really only use those for work (use maps, DuckDuckGo and safari on my apple devices).

I have spent close to the last decade teaching from an iPad in the classroom, because windows tablets were crap. Since then, I have gone all in with the apple ecosystem and not looked back since. It ultimately comes down to me using apple products because I want to, and using everything else because I have to.

I also wish Apple would bring more of their services to my country. I would love to apply for an apple credit card, and sign up for Fitness+, and use Siri on my Apple TV.

Who cares about the perception from the consumer market when you make the same money these are businesses I think your forgetting that, stop being romantic about corporations I’m sure Microsoft is happy letting apple be the brand with all the mindshare of consumers if they are making just as much profits form the enterprise which is actually more stable. Somebody has to run the servers even apple has to use Some google/aws server for iCloud. They’re all sharks in the water

 

[philstubbington]

Apple this year brings the best rock solid devices and microsoft brings an windows 10.5 with a surface double laptop studio mess and takes the first place )
Now you know how Wall Street analysts and experts think

Ah, but Microsoft is primarily a services company and Apple isn’t. That’s the biggest difference. I’ve got the best of both worlds - I own stock in both, have only Apple kit at home and work, and run a Microsoft Partner business. If I need Windows I run it in Parallels.

 

[H2SO4]

Glad you have great windows experience for years. I wish I could say the same thing, as I am starting to lose my hair, while using windows 10 in our office.

I am European, living in Japan. When I switch windows from Japanese to English, most of the software (including build in calendar) stays in Japanese. Then I switch back to Japanese, and couple days later, calendar becomes English!?!
Keyboard inputs randomly locks, cannot which keyboard by key or shortcuts, update starts without me confirming them, so I cannot use machine for many minutes, starting a computer takes ages, …
Endless problems.
I understand it might be setting or firewall … and other stuff, but this is far from ideal or even normal, user friendly.

So, I quite often bring my Air to office, to manage most of my workflow.
I wish our company would allow us to have Mac instead, but they don’t.

I have never switched the language on any of my computers and I suspect most have not so can't speak of your troubles.
All I was getting at is that a lot of people seem to have Windows hangovers from waaaaaay back in the day. We still hear the 'blue screen of death' phrase and that kind of thing seems to happen far more in Mac OS and they take ages to fix it.
I had a time for months where my mini would crash on sleep or on power down after an update and because Apple make it very difficult, (if not impossible) to regress it becomes even more of an issue. These forum are pretty good but he official ones are an awful place to ask for advice.
Still now it won't start properly with a 3rd party monitor where my Windows machines, (and older Macs), are fine.

 

[Timur]

The world will stop working if Microsoft stops Azure tomorrow. The world will keep turning if Apple stops selling iPhones tomorrow.

I would choose a dishwasher over a smartphone if I had to only keep one of these.

 

[mabhatter]

Apple this year brings the best rock solid devices and microsoft brings an windows 10.5 with a surface double laptop studio mess and takes the first place )
Now you know how Wall Street analysts and experts think

Think how many people have to start buying Windows 11 compatible devices, servers, services, upgraded, etc... windows runs on 85%+ of all desktop computers.

 

[mabhatter]

Well you’ll have to think outside your upgrading an iPhone every year bubble and realize Azure and corporate licensing is where Microsoft makes its money. It definitely isn’t from its consumer hardware.

Realize that every desktop computer sold that isn't a Mac is Windows. Linux doesn't count for more that 2% of installs. Windows 11 abandons hardware that's only about 4 years old... there will be a massive upgrade for businesses coming... and all the other software has to be updated too.

 

[Thebrochure]

You know, this probably isn't such a bad thing. As a matter of fact, maybe it would be good if Apple slipped even further. Why? Because they seem at their best when they're the underdogs, "fighting" against the system. After Jobs died and they became the system, things got a little... what shall he call it? Derivative? And that's me putting it nicely. Yes, the value of the company is just great, and I'm sure stock holders are as happy as vegans at a tree-hugging ceremony.

But is it still Jobs-era exciting? Is it... really?

 

[nebojsak]

These forum are pretty good but he official ones are an awful place to ask for advice.

This got pretty annoying these years. Back in the day, Apple discussions was way more helpful, and now it's a bot dominated place, with automated answers "did you restart your Mac" "did you reset PRAM" and so on. Or simply ignoring or deleting the posts. There are plenty of well documented bugs that occur for years and through many OS versions, like with Mail.app or external displays, they simply ignore it.

I miss old Macosxhints, now we have OSXdaily with expert hints how to sync your photos to your iPhone. With big bold fonts in headlines.

 

[BreakYurAnkles]

Apple and Microsoft are technology companies that generate revenues and profits from a different strategy.

Apple - Profits by hardware + Software + Services (wants to grow them moving forward)

Microsoft - Profits from Software + Services (as a service MS OFFICE monthly/yr etc.). They don't make a lot of profit (if any) on their hardware, the hardware leads users to MS services which makes them profits.

There are pro's and con's to each company's strategy, and us as consumers need to accept that there are "different strokes for different folk's" and not try to justify one's personal subjective use case for each.

 

[Skewlovevism]

I have never switched the language on any of my computers and I suspect most have not so can't speak of your troubles.
All I was getting at is that a lot of people seem to have Windows hangovers from waaaaaay back in the day. We still hear the 'blue screen of death' phrase and that kind of thing seems to happen far more in Mac OS and they take ages to fix it.
I had a time for months where my mini would crash on sleep or on power down after an update and because Apple make it very difficult, (if not impossible) to regress it becomes even more of an issue. These forum are pretty good but he official ones are an awful place to ask for advice.
Still now it won't start properly with a 3rd party monitor where my Windows machines, (and older Macs), are fine.

I guess it depends on settings, usage and luck
I have used Mac for 16 years now, had about handful of non-serious issues over that period of time.
At my work in Japan, 5 years of windows, I am on a verge of throwing the Windows machine out of window