Monday, August 20, 2012
My first post on the subject of Apple vs. Microsoft was in October '08, when I predicted that AAPL would surpass MSFT in market cap within a few years (AAPL was trading around 100 then). Well, they did that in mid-2010, and now they have achieved yet another milestone: Apple's market cap ($621 billion as of this writing) now exceeds Microsoft's all-time high, which at the time (late 1999) was the highest market cap ever achieved. Apple is now the most valuable company of all time. This has got to be the greatest David vs. Goliath corporate story of all time. The chart tells it all.
I have made numerous posts on Apple over the years, always of the bullish variety. I remain bullish on AAPL, but have cut the size of my position for reasons of prudence and diversification. Obviously, AAPL can't continue to post such outsized gains forever. But I don't see why it can't continue to grow, especially since Apple's share of the PC market is still relatively small. Morever, although Apple has a very healthy share of the global smartphone market, smartphones still represent only a relatively small share of the global mobile phone market. There is lots of room to grow, and Apple still has the best products in its class and can still claim the mantle of world's most innovative company. New products are in the pipeline and it will be very exciting to see whether and how Apple can revolutionize TV as we know it.
I'm looking forward to upgrading to an iPhone 5 next month, and will be receiving a new MacBook Pro with Retina Display later this week.
Posted by Scott Grannis at 9:44 AM