Apple emerged as the biggest tech company in the world on Wednesday as it leapt past Microsoft in market capitalization. The former is now in the lead with a market cap of around $222 billion. It is closely followed by Microsoft, which is valued at $219 billion after having shed 4 percent on Wednesday.
In 1997, Apple had to put up with the ignominy of being rescued by arch rival Microsoft. It goes without saying that staying afloat, and not trumping its savior on NASDAQ, was the only thing on the mind of Apple honchos (save for probably Steve Jobs) back then.
Apple may boast a greater market cap than its sworn enemy now, but not a lot has actually changed: Microsoft still is the top dog in the world computer market and the Mac seems comfortably entrenched in the perennial-runner-up-to-the-PC role.
Apple's vastly improved market capitalization and the investor confidence it reflects can be attributed to its dominance in the PMP and phone segments. What started out as a MP3 player has blossomed into a device and software ecosystem that currently spans three segments and knows no parallel.
Steve Jobs avowedly learnt a valuable lesson in 1997: “We have to let go of a few notions here. We have to let go of the notion that for Apple to win, Microsoft needs to lose.” Those words appear to have acquired a prophetic aura.
