World’s Most Valuable Company on August 20, 2012

As the day dawned and stock markets opened, Apple shares went up by $16 to $647 and made it the most valuable company worth $623 billion. It beat its next rival Exxon Mobile. Towards the end of 1999, Microsoft was worth $616B, but its value now is $257B, less than half of Apple’s value. Who could have imagined this ten years ago? Apple was derided as the company that paints PC’s (multiple color workstations) for a living. I have written before on Apple’s rapid growth and success. After Steve Jobs returned to Apple the second time, he revived the sinking ship and then started new categories that became market leaders. The new MacBook Air started a new trend in light-weight, sleek design with its ultra-fast operating system. No longer one has to wait minutes for the system to boot up. Then came the iPod that turned the music business upside down. Then followed the new leader in smartphone – iPhone which saw huge success year after year, contributing almost half of the revenue. Then Jobs introduced the iPad, the first tablet with touch interface. In spite of critics who doubted its success, it defied gravity in terms of sales and profit.

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