I've read yesterday that for the first time in 21 years, Apple has succeeded in overtaking Microsoft in terms of Market Values. It is rather interesting how the two titans continue to fight at the top while entire nations head fast towards national bankruptcy. According to Reuters, the two MVs are $222 billions and $219 billions while the individual stocks are estimated at $224 for Apple and roughly $25 for Microsoft. In terms of revenues, Microsoft is still ahead ($14 billions to $13 billions).
So what does this mean?
• Microsoft should bear in mind that the market value of Apple has steadily grown for 10 years while their MV has been constant.
• Microsoft should find alternatives to increase the GAP between the 2 revenues flows; or at least to improve their free cash flow figures
• Microsoft still has a huge advantage - their actions are much more liquid than those of Apple; they should do something in this direction
People say that this happened because Apple has always been the "INNOVATOR" while Microsoft has done nothing else than stealing ideas, copying gadgets and mass marketing. I would say NOT. Apple has not been the only innovator. Apple is indeed cool; However, cool doesn't necessarily mean "INNOVATION". Let me give you an example: for Joe, a small financial advisor, it doesn't matter that Apple has released the IPhone 75 GS in July 2020. Joe doesn't need the Apple IPhone. Moreover, i bet that 80% of the IPhone customers don't need the IPhone. They purchased it just because it's cool. It's a trend. The same happened with the IPad.
Microsoft is sometimes innovative; this is beacuse they've always had the long tail of parteners that have developed auxiliary and complementary solutions. Their philosophy seems simple to me: reach innovation through partners; everybody has to live and eat.
In the case of Apple things are different - it is hard enough to get there. And once you are there, what are you building? Glamour.
So, as a conclusion - see what i mean in terms of Microsoft partners: Visendo Fax Server can be fully integrated with Microsoft Office 2010 or SharePoint 2010. So SMBs, for instance (joe) can use simple and effective solutions for his business; Not to mention that he will protect the environment; this is the true innovation in these hard times: affordable, easy and environment friendly. This is why i tend to think that Apple's Market Value is a bubble. Time will prove if i am right or wrong.