Microsoft's dominance as the tech industry's most valuable player has ended

Apple topples Microsoft's throne

Microsoft's dominance as the tech industry's most valuable player has ended.

On Wednesday, Apple's market capitalization edged past its longtime rival's as investors made official what consumers have long suggested: Microsoft is no longer the industry's alpha dog.

Just last month, Microsoft's market cap exceeded Apple's by about $25 billion, but now Apple is in the lead by nearly $3 billion.

Microsoft's consumer products business is struggling to compete as Apple's hot new items like iPad and iPhone capture the attention of customers.

Microsoft (MSFT, Fortune 500) fell 4% to close at $25.01 on Wednesday, while Apple (AAPL, Fortune 500) lost 0.45%, closing at $244.11.

Shares of Microsoft have dipped more than 15% in the past couple weeks, while Apple's stock is down just over 6%, despite recent market volatility.

"What this really means is that Wall Street has more confidence in Apple's growth prospects than it does in Microsoft's growth prospects," said Matt Rosoff, lead analyst at Directions on Microsoft, an independent firm.

"Apple is showing high growth, with the launch of its iPad and its new iPhone coming out, and while Windows is a great competitor versus the Mac, Microsoft just hasn't come up with new areas of growth."

Microsoft's reputation as a market leader took another hit Tuesday when the company announced that it plans to shake up its management structure.

Amid the shuffle, Robbie Bach, who was in charge of years-long effort to turn Microsoft into more of a threat to Apple by heading the entertainment and devices group and overseeing innovative consumer products like Xbox and Zune, will retire from Microsoft in the fall.

"This just means those efforts didn't work out," said Roger Kay, president of analyst firm Endpoint Technologies. "It's sort of like Japanese samurai ethic, which says you need to fall on your sword to maintain your honor."

Toe the line or keep up with the Joneses?

Part of Microsoft's problem is that, instead of finding its own audience, it has fallen into a game of catch-up and is focusing too much energy on finding products to directly rival Apple's, said Kay.

"I don't know if they have to compete," he said. "What seems to be working for Microsoft is its serious applications for businesses, education institutions and other enterprises, and if they stay focused on their commercial business that gives them a lot."

While Microsoft's first quarter earnings were boosted by the success of its new operating system, Windows 7, Apple's record profit and revenue in the first quarter was driven by iPhone sales.

And many of Microsoft's efforts to branch out have been met with little success. For example, the company's Zune music player, meant to rival the iPod, has failed to create the same buzz as Apple's device, with sales dropping significantly in 2009.

Microsoft even looked into creating a tablet computer that would have competed directly with the iPad, which Apple introduced at the beginning of April, selling more than 1 million in the first 28 days of release. But Microsoft CEO Steve Ballmer ended up pulling the plug on the project before the tablet ever made it to market.

"Zune hasn't gone anywhere, their tablet is dead, their phones are having trouble establishing a market position -- but consumers still use Office and Windows," said Kay.

Other experts say that Microsoft shouldn't stop at its core business, and that it simply needs to innovate more -- and faster -- in order to stay competitive.

"They have to continue to try to find other businesses, otherwise growth is always going to be bound by the PC market," said Rosoff.

Until Microsoft develops a clear direction and finds new ways to innovate, Apple will continue to push ahead, he said.

"Wall Street believes in Apple because Apple continues to put out new products that capture the imaginations of the press and tech pundits," said Rosoff. "Microsoft just hasn't been able to come up with a new multi billion dollar business like Apple."

source:
http://money.cnn.com/2010/05/26/technology/apple_microsoft/index.htm?cnn=yes&hpt=Sbin

Bai, kamusta? I saw some screenshots on Acad for Mac, maybe soon we will have 3dsmax for Mac.

hehehe.Lagi naman ganyan e. But we'll see. Magaling talaga sila steve jobs sa marketing. Yung IPAD nga nila rated as 5 stars sa states and a lot of people was crazy about it.Including my sister.hehehe..Pero the last time i tried it, i dont think its worth it. But its really cool looking. Quite disappointed lang na naka lock sa AT&T yung 3G nila. Kala ko you can use it anywhere as long as may nasasagap na connections,hindi pala.
One more good exampl is the iphone. Everyone knows that its really crap,as a phone,compared to nokia and sony ericson. Me too i can say na talgang nakakainis gamitin,but a lot of people has it.Here in the office halos 80% naka iphone. Ewan ko pero talgang iba ang branding ng apple.

hotrod wrote:Bai, kamusta? I saw some screenshots on Acad for Mac, maybe soon we will have 3dsmax for Mac.

I think 3dsmax 2010 can runs also on Mac? Sir Eric can you confirm this..

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Glad to see you around Rod...

that is true for a while....Im still thinking how big microsoft is and the line of computers they still need to sell for the next 5 years.

Think they also have the same tech as mac....its no brainy for people and thousand of employee of microsoft to think the same way apple have.

they need to sell all their product lines befor jumping into something very new...

steve job says...3rd generation machine (bill says-is that the best idea you can come up with)

Sir sobrang busy natin mga time na to ah, daming information mo ngayon ah.

well, there's no doubt apple has many products than microsoft..
microsoft focuses on softwares, partnering with other computer company to have there softwares installed as the basic for each other;s product (because of the open system of the microsoft which is really convenient to use, specially on business things..)
at the other hand, apple is more on products which really give a whole new experience (like the world's thinnest notebook), there are really betterand more convenient to use products than apple,
Apple are really not more on the ordinary, its about user experience and the statement..

ARCHITHEKTHURA wrote:Magaling talaga sila steve jobs sa marketing.

plus dumami ang fanboys ng apple. tingin ko parang trend lang yan, parang twilight.

para sakin...

Microsoft = functionality
Apple = Design/Fashion

fpj999 wrote:para sakin...

Microsoft = functionality
Apple = Design/Fashion

-dagdagan ko pa bro.,
Microsoft - business talaga "PC on every desk",Bil Gates Vision
Apple - Innovation, Creativity "think different"