Microsoft’s gamble on technologies like cloud computing has paid off as the company has surpassed Apple’s stock market value.
Market capitalization Microsoft
The prospects of the software company founded by Bill Gates and Paul Allen looked bleak just a few years ago, as demand for the Windows system plummeted, as did sales of personal computers. But under the leadership of CEO Satya Nadella, Microsoft has gained momentum by turning to software, services, and cloud computing, leading to significant long-term contracts with companies.
Giant personal computers have enjoyed glory in the 1990s and then go through a more turbulent period, Microsoft is going through a period of rebirth, eclipsing Facebook, Google, Amazon and other techies of the last decade.
Apple ranked as most profitable US company
Apple was the most successful company in the world after pioneering Exxon Mobil at the beginning of the decade. Microsoft doubled Apple a few times during the week, but the company finished Friday’s session with a higher market value than the Apple logo giant. The market value of Microsoft was the US $ 851 billion, compared to the US $ 847 billion for Apple. Microsoft had not reached this level since the peak of the tech bubble in the early 2000s.
Microsoft was able to catch up with Apple since it saw its action fall by 20 percent in November, while the title of Microsoft has remained stable. But the fact that Microsoft has not posted a bad performance in recent years shows the success of its turn.
The giant, headquartered in Washington State, had lost its luster while consumers decided to turn to smartphones rather than personal computers. In 2013, personal computer sales plunged 10 percent to about 315 million units, the worst year-over-year decline, according to Gartner and IDC.
However, this trend was reversed when the company entrusted the management to Nadella in 2014. The latter took the place of Steve Ballmer, who at first mocked the idea that people would be willing to pay US $ 500 or more for Apple iPhones.
This bet worked. Windows is only a small part of Microsoft’s business.
Even though the giant still owns consumer brands, such as the Bing and Xbox search engine, it has decided to focus on business services, such as the Office suite and other enterprise software, as well as new ones. additions like LinkedIn and Skype.
However, it is the Azure cloud platform that allows Microsoft to reach new heights. This segment now accounts for almost a quarter of Microsoft’s revenue.