Oops! Apple = Microsoft + Yahoo

by on August 30th, 2010

Now Apple Inc values equal to Microsoft and Yahoo combined. If you check the market cap today, Steve Jobs led Apple stands at $223B, Microsoft at B205B and Yahoo at $18B! Check figures at Google Finance here.

Surprising huh! Its equally surprising for me too. When I looked around a year back, Google and Apple both were at around $130B. Now Google is at $144B and Apple at $223B. Yahoo at that point was $50B and Microsoft was $248B.

What brought this change?

Apple’s strong performance continued from iPod to Iphone to iPad. Its iPod touch also performed well. The concept of iTunes flourished day by day, and is not one of the biggest source of regular income for Apple.

During this same time, Microsoft’s Bing and Google took share from Yahoo Search. Yahoo’s losing streak continued in Social Media space as both Flickr and Delicious continue to decline. Yahoo.com, Yahoo Mail and Yahoo Messenger are still no 1 in individual category. But they have been losing users to competitors mainly from Google.

Microsoft’s Windows Mobile 6.5 failed, Windows Vista failed. Windows 7 has shown some encouraging results but Microsoft is yet to gain momentum in SmartPhone space. Only competitor to Apple’s iPhone OS in the market now is Google’s Android.

Microsoft also failed to create a good OS for Netbooks and Tablets. HP dumped its project of launching Tablets with Windows.

Google has strengthened its position in areas like Smartphone OS and Search. But it has not been able to stop from dominating the Social Web. The company is also challenged by location tracking network like Foursquare and Facebook Locations, which are creating good competition to Web based location application like Google Maps, Google Earth and Google Streets.

Analysts believe that the biggest challenge for Google is not in Social Media, Search or Web Apps. Its in Ad Network. Facebook Ads is taking away charm of Google Adwords and Adsense. The Social Media giant after all has 500M+ users and is believed to have better targeting algorithm. This is taking away Google’s revenues in real terms.

Apple too is coming strong in advertising space particularly in Smartphones space. Google has difficulty time now.

Coming back to the Point

I believe that Microsoft and Yahoo actually deserved to be jointly equal to Apple. They have not innovated for long. These companies have always ralied behind Apple, Google and Facebook.

If this stats is to change in their favor, Microsoft and Yahoo needs to bring some good products to the market. They need to pull up their sleeves.

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