Apple Market Share and Value

Posted: May 31, 2010 in Apple, computers, Windows
Tags: , ,

It was a little uplifting and gave me a bit of nose-thumb-moment to Microsoft when Apple’s value surpassed theirs late last week. Call me a fanboy if you want, but I happen to like most of what Apple does and feel a sense of pride in them doing it so well.  (I wish I had enough Apple stock so that the profits from it would at least offset the amount of money I spend on their products every year)

But lets remember what it all really means, Apple may have the highest value of tech companies right now, but its just a simple valuation based on how many shares the company has times the current trading price of the shares, and that can fluctuate a lot very quickly.

Apple has a good chunk of the portable music player market (about 75% depending upon where you look), some may say it owns the market, but lets be realistic here.  Innovation got them where they are and if they rest on their laurels and stop innovating, they could very quickly see that market move on, at least in part.  Every tech device has a lifespan, and those iPods that are the main source of income for Apple right now are forever getting worn out or broken and then replaced.  If someone else comes along with a product that can compete with the iPod and works basically the same way that market share could become divided.  I’m not sure who that could be, since a few have tried and failed, but thats not to say everyone has given up.  It’s a huge market and many companies have their eye on it and the method of delivering purchased music to them.

Being number one is a nice place to be, but you have to keep working to stay there.  Microsoft was there for a long time and really isn’t that far behind – what’s a few billion dollars between friends.   If they can just make an OS that everyone can agree on works well, they could easily regain the crown.  The installed userbase of Windows is still a huge percentage of the computers out there (still around 90% of market vs Apple’s approx 5%) and while Apple may have the portable music/video player market cornered, Microsoft is still dominating in the OS market, and Google who is trying to compete in every tech market is not far behind in value.

Staying number one is gonna be hard. You’ve come a long way Apple, you should be proud, but don’t let it go to your head.  Remember your past, your failures and triumphs and above all, remember consumers are a very fickle lot always looking for the next-best-must-have-thing.


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