26 July 2007

Apple Overtakes Hewlett Packard

A quick observation following the market today digesting Apple's Q3 results announced last night.

Apple has now overtaken HP in terms of market capitalisation (as of 26th July at 14:45 GMT). (Market Capitalisation is the figure that represents the total enterprise value attached to that company by the stock market). That is quite an achievement, as it was little more than than a year ago that it overtook Dell Computer. Apple is now close to double Dell's market capitalisation. To match HP, Apple has done very well indeed. It's not as if HP has had a bad time either - taking significant business from Dell in recent quarters.

Apple has also overtaken Oracle in the last year. The next target, ironically, is Intel - currently around $141bn. Then Google at $158bn, closely behind Cisco and IBM each in the $170bn range. Overhauling any of these companies could happen with a good year or two for Apple, though it would also require comparative stagnation for those companies. I certainly wouldn't bet against Google!

Microsoft is still a long way ahead of the rest of the IT industry with a market cap of around $280bn. We'll have to wait a while longer before that is even a possibility.

As always with such numbers, there is a lot of variation from hour to hour and day to day. Apple and HP will no doubt each be trying to push ahead of each other over the coming few months before a clear trend emerges. But for now, we've got a 1-1 draw in the first match of a long season.

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