Adjusting for Inflation, Apple Still isn't More Valuable Than Microsoft Once Was

Adjusting for Inflation, Apple Still isn't More Valuable Than Microsoft Once Was

It's taken nearly 13 years, but Apple finally broke a record set by Microsoft in 1999 for having the highest market capitalization. In the weeks leading up to the much anticipated iPhone 5 launch, and amid rumors of an iPad Mini device to compete with the flurry of 7-inch Android tablets, Apple's stock on Monday closed at $665.15, an all-time high that resulted in a market capitalization of more than $624 billion.

Apple managed to keep the momentum going for a little while today as the company's stock surged to a high of $674.88, though it's currently trading at around $657. It doesn't matter though, the company is worth hundreds of billions of dollars, and bested a record set by rival Microsoft on December 30, 1999 when it was valued at $620.58 billion at the closing bell.

Apple I Computer
Image Credit: Flickr (rebelpilot)

That's mighty impressive, though there's a caveat. If you factor in inflation, Microsoft would still hold the record, and by a large margin. Adjusted for today's dollar, Microsoft's value in 1999 would have been worth somewhere in the neighborhood of $850 billion today. Microsoft benefited from the Internet boom more than Apple did at the time, and there was no such thing as an iPhone or iPad tablet back then.

Things have changed in the past 13 years, obviously. Microsoft's market cap today is around $258 billion, which is less than half of Apple's. It wouldn't be surprising to see Apple set another record following the iPhone 5 launch, assuming it's a successful one.
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Wow, what happened to Microsoft? What would have made its value drop so much in 13 years.

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Apple :)

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The reason M$ value is so low compared id because of how many times it has split since then. Really that is not that bad say 850 billion to start /2 /2 =212.50 so it is not really worth less it is just more split up. One of the big things on that front would be at the time M$ was worth $800+ billion total at $600+ per share Apple was worth $4.00 per share. SO in a companies Evolution there's started a couple of years ago financially and M$'s started 20+ years ago. 

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Man at that price, shareholders better hope that bubble doesn't pop anytime soon.

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I just cant understand how apple can be worth that much, when MS is in just about every business and home and has been on top for so much longer.

The only thing I can think of is that people that buy apple have the need to upgrade every time a new product is out, that and the markup on apple products are extremely high. When you look at Windows XP people loved it and saw no need to upgrade to window vista or windows 7. MS didnt really have much hardware other then XBOX,, in saying that XBOX is the number 1 console.

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Apple is not worth that much RiCo that is the kicker. If I owned Apple stock I would have sold today as I do not think the returns will continue for much longer if even after the iPhone 5. It might but the premium gets old when it becomes the norm and that's where we are. One of the reasons I have been quite confused about the quad core phones and tablets not hitting much (Except the Nexus 7) in the US is that would add more numbers to the market. Supposedly there will be an A6 quad core in the iPhone 5 which I find to be interesting as the processor maker and them are in court I believe. Either way I think it is at or near it's cap for a while and there is nowhere to go but down I don't think.

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Just entered into in court from Google/Motorla Mobility

The new suit targets:

iPod Touch

iPhone 3GS

iPhone 4

iPhone 4S

iPad2

"the new Apple iPad (aka the iPad3)

Mac Pro

iMac

Mac Mini

MacBook Pro

MacBook Air

It demands satisfaction in the form of a resolution within 15 months and a court-order "excluding entry into the United States of wireless communications devices, portable music and data processing devices, computers, and components thereof that infringe."

As Apple manufacturers all its products outside the U.S., this means, basically, a complete ban of all Apple's products.

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And in the Samsung Apple court room

The filing had Judge Koh inquiring whether Apple attorneys had been busy scoring some coke.

She asked Apple why they would present her the document "when unless you're smoking crack you know these witnesses aren't going to be called!" notice the quote marks I am amazed a judge actually said that, but I guess she did as it has been posted a couple of days with no retraction!

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~"Adjusting for Inflation, Apple Still isn't More Valuable Than Microsoft Once Was"~

But they seem to be doing alright,.................

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They might be but still apple wont do better than what they are now. Iphone 5 will flop.

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nicoletoledo:
They might be but still apple wont do better than what they are now. Iphone 5 will flop.

What?

Their stock is going viral just over the ~anticipation~ of the iPhone 5's release. And you honestly think that it will be a flop? Really?

I guess we'll have to let time play this one out for us, but I think that it will have record breaking sales right out of the gate, and it will continue to sell well for a long time afterward.

Will it be worth it? Who knows,.............

Will I buy one of them? Not likely,............

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I do not know about flop though there are to many iSheep for that I am pretty sure.

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I would like to see Apple donate Money to the poor and needy like Bill Gates does.hahah yeah i know it will never happen hehehe.

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