I read it last week somewhere, I didn't look too closely at the reason why but it may have been based on share value.
Still, with 18,000 employees and a 4% World Wide PC share they aren't doing too badly lol.
I accept that Apple ain't doing to bad for themselves - also don't do Apple down their share is more like 7-7.5% from the most reliable sources. Mind you Microsoft employ little under 80,000 people and have 92% of the PC market.
Either way, Apple are a big player, no doubt, but they are are by no means on the scale of Microsoft.
That article said that if Apple meet analysts share target of $300, then it would be worth more than Microsoft (in respect to market cap).
Do we have a source for this article?
Furthermore what is the current share value? If we go on your figures (which are better for Apple) then Apple are worth $160billion less than MS - so these shares must be either currently worth peanuts and they are expecting a huge hike, or Apple has floated billions of shares (and we must question just how valuable Apple stock is).
With revenues of $51.12billion for 2007, irrespective of how poorly the Hardware Division does, or your description of impending doom, Microsoft are going nowhere. We will see the back of your beloved Apple before we see the back of Microsoft, and neither is remotely likely.
Dave
The problem for Microsoft is that they have effectively saturated the PC market, growth is far less than Apple are experiencing. Apple make huge profits from a very small portion of the market. If they doubled what they had now just in the computer market they would be huge. Apple have massive room for growth and are proving successful in new arenas. Everything else Microsoft try is effectively subsidised by Windows and Office. Microsoft's profits/revenues do not reflect how much more market share they have.
The problem for Microsoft is that they have effectively saturated the PC market, growth is far less than Apple are experiencing. Apple make huge profits from a very small portion of the market. If they doubled what they had now just in the computer market they would be huge. Apple have massive room for growth and are proving successful in new arenas. Everything else Microsoft try is effectively subsidised by Windows and Office. Microsoft's profits/revenues do not reflect how much more market share they have.
I agree somewhat, certainly on the issue of growth - MS are a classic example of being a victim of ones own success. MS know that Windows and Office is so ubquitous and sucessful that they can try other things and accept that they can fail. It is also a worth noting that comparing MS Vs Apple in the PC market must take account of the fact Apple support both hardware and software - so its not a direct like-for-like comparison.
Furthermore what is the current share value? If we go on your figures (which are better for Apple) then Apple are worth $160billion less than MS - so these shares must be either currently worth peanuts and they are expecting a huge hike, or Apple has floated billions of shares (and we must question just how valuable Apple stock is).
This came out a few weeks ago when AAPL was at $200. The stock price has tanked since then and is at $171 right now.
Considering the shares were $80 this time last year, I wouldn't rule it out. While the current P/E ratio is high, Apple are recording extremely high growth on their Macs (way above the industry average), and have of course just introduced the iPhone. So lots of room for growth in both of these businesses
Given pretty much every legitimate legal television service in this country uses MS-DRM, I'm amazed Microsoft have never got the Zune out the door in this country and pointed out that it can play this content whereas iPods can't.
This came out a few weeks ago when AAPL was at $200. The stock price has tanked since then and is at $171 right now.
Considering the shares were $80 this time last year, I wouldn't rule it out. While the current P/E ratio is high, Apple are recording extremely high growth on their Macs (way above the industry average), and have of course just introduced the iPhone. So lots of room for growth in both of these businesses
Thanks. I see that there is both confidence and scepticism expressed; we'll say its possible. Where does it indicate the Market Capitalisation will exceed $320billion? A current share price of ~$200, a 50% increase in 12 months is not going to yeald a doubling of the capital value of Apple. That said I would expect Apple to have a good year.
There is always the risk that Apple's stock value will become overvalued (if not already), so whilst a high P/E ratio is in some respects desirable, there is the risk of Apple becoming a less desirable investment catch - we all know what happens then. Lets hope they aren't setting themselves for a fall.
Thanks. I see that there is both confidence and scepticism expressed; we'll say its possible. Where does it indicate the Market Capitalisation will exceed $320billion? A current share price of ~$200, a 50% increase in 12 months is not going to yeald a doubling of the capital value of Apple. That said I would expect Apple to have a good year.
There is always the risk that Apple's stock value will become overvalued (if not already), so whilst a high P/E ratio is in some respects desirable, there is the risk of Apple becoming a less desirable investment catch - we all know what happens then. Lets hope they aren't setting themselves for a fall.
Its been a good growth year for Apple, and 2008 looks to be a good financial year for them too. However they must be careful of a P/E ratio currently in the mid-40s - on the one hand it shows the growth potential of Apple (as should be expected from a company that is introducing new products like Apple is at the moment where they are not the main players in those markets, e.g. operating systems, mobile phones etc), but on the other there is a very real risk of Apple becoming overvalued and hence less if an investment option as the stock returns diminish. Remember the shareholders have very little care for Apple the company, they care about their money.
I got my Zune 80 on Friday. Though from a UK seller on eBay, brand new at £149. I'm loving it so far, miles better than my iRiver PMP 140 (i can't believe i actually used that thing for 2 years). But it's a pity the Zune Marketplace and Social isn't available here, hopefully that will change soon.
The problem with importing a Zune is you lack content delivery from the likes of iTunes.
With iTunes you can get TV shows, music, videos, podcasts and soon movies to buy and rent as well which can also be used on your iPod, computer, iPhone or Apple TV. The Zune in this coutry offers none of that and even if it was officially available it still would only offer a smaller music catalogue. Why people bother with t I don't know.
Comments
I accept that Apple ain't doing to bad for themselves - also don't do Apple down their share is more like 7-7.5% from the most reliable sources. Mind you Microsoft employ little under 80,000 people and have 92% of the PC market.
Either way, Apple are a big player, no doubt, but they are are by no means on the scale of Microsoft.
Dave
Do we have a source for this article?
Furthermore what is the current share value? If we go on your figures (which are better for Apple) then Apple are worth $160billion less than MS - so these shares must be either currently worth peanuts and they are expecting a huge hike, or Apple has floated billions of shares (and we must question just how valuable Apple stock is).
Dave
The problem for Microsoft is that they have effectively saturated the PC market, growth is far less than Apple are experiencing. Apple make huge profits from a very small portion of the market. If they doubled what they had now just in the computer market they would be huge. Apple have massive room for growth and are proving successful in new arenas. Everything else Microsoft try is effectively subsidised by Windows and Office. Microsoft's profits/revenues do not reflect how much more market share they have.
I agree somewhat, certainly on the issue of growth - MS are a classic example of being a victim of ones own success. MS know that Windows and Office is so ubquitous and sucessful that they can try other things and accept that they can fail. It is also a worth noting that comparing MS Vs Apple in the PC market must take account of the fact Apple support both hardware and software - so its not a direct like-for-like comparison.
Dave
http://seekingalpha.com/article/58415-is-apple-going-to-300
This came out a few weeks ago when AAPL was at $200. The stock price has tanked since then and is at $171 right now.
Considering the shares were $80 this time last year, I wouldn't rule it out. While the current P/E ratio is high, Apple are recording extremely high growth on their Macs (way above the industry average), and have of course just introduced the iPhone. So lots of room for growth in both of these businesses
Phazer
Thanks. I see that there is both confidence and scepticism expressed; we'll say its possible. Where does it indicate the Market Capitalisation will exceed $320billion? A current share price of ~$200, a 50% increase in 12 months is not going to yeald a doubling of the capital value of Apple. That said I would expect Apple to have a good year.
There is always the risk that Apple's stock value will become overvalued (if not already), so whilst a high P/E ratio is in some respects desirable, there is the risk of Apple becoming a less desirable investment catch - we all know what happens then. Lets hope they aren't setting themselves for a fall.
Dave
AAPL currently is trading @ $171, not $200.
The ~ implies "in the region" "approximately". So I had a 14.5% error
The net result is Apple must increase their stock value by 64.5% in 12 months.
Dave
Year on year stoke growth for 2007:
Microsoft 19%
Google 50%
Apple 133%
Its been a good growth year for Apple, and 2008 looks to be a good financial year for them too. However they must be careful of a P/E ratio currently in the mid-40s - on the one hand it shows the growth potential of Apple (as should be expected from a company that is introducing new products like Apple is at the moment where they are not the main players in those markets, e.g. operating systems, mobile phones etc), but on the other there is a very real risk of Apple becoming overvalued and hence less if an investment option as the stock returns diminish. Remember the shareholders have very little care for Apple the company, they care about their money.
Dave
I got my Zune 80 on Friday. Though from a UK seller on eBay, brand new at £149. I'm loving it so far, miles better than my iRiver PMP 140 (i can't believe i actually used that thing for 2 years). But it's a pity the Zune Marketplace and Social isn't available here, hopefully that will change soon.
With iTunes you can get TV shows, music, videos, podcasts and soon movies to buy and rent as well which can also be used on your iPod, computer, iPhone or Apple TV. The Zune in this coutry offers none of that and even if it was officially available it still would only offer a smaller music catalogue. Why people bother with t I don't know.