27 May 2010 | Author: D. Warburton Search Copywriter

Apple market cap beats Microsoft

Apple's market cap has beaten that of rival Microsoft for the first time in more than 20 years, according to Nasdaq share values at the close of business on Wednesday.

Times Online reports that Apple's shares approached $222 billion (£154 billion) yesterday, compared to Microsoft's $219b (£150b). Microsoft is still leading in net profits however, boasting $14.6b (£10b) profit at the most recent count, compared to Apple's more modest $5.7b (£3.9b).

Full-year revenues are also squarely in Microsoft's court, with the company enjoying $58.4b (£40.1b) last year, while Apple closed on $36.5b (£25.1b) - however, these figures may soon change thanks to the growing success of Apple's products.

Launching tomorrow in the UK, Apple's iPad has been a huge success for the Silicon Valley company, with unexpectedly high sales in the US delaying its international release.

Research companies are expecting the tablet computer to be eagerly received in Britain as well, with RBC Capital markets predicting that 124,000 will be sold in the first three months and more than half a million within the next 12 months. GFK NOP is even more hopeful than that, anticipating that two million iPads will be snapped up in the UK within the first year.

A basic iPad model with Wi-Fi capability will cost UK Apple fans £429 RRP, while models with 3G connections will cost up to £700, Times Online reports.

Long the underdog of the computing industry, Apple enjoyed a new lease of life in 2001 with the success of its iPod brought Apple squarely into the limelight. Prior to this, the company's shares were worth less than one tenth of what they are today, and Apple may have gone under if not for a $150 million investment from Microsoft in 1997 to ship Office products on the Macintosh.

It seems the software giant may now have reason to regret that decision.

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