Apple’s (AAPL) rise to heaven

By: ispeculatornew
Date posted: 03.31.2010 (5:00 am) | Write a Comment  (0 Comments)

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To think that only a decade ago or so, Apple (AAPL) seemed like a unworth competitor for the PC systems which were backed by might Microsoft. Now, with a new decade that started about 4 months ago, Apple is almost ready to officially take over Microsoft (MSFT) in terms of market cap!! About 9 years ago, Microsoft had a market share over 30 times higher than Apple and the Mac line looked very weak compared with the monopoly that Microsoft had for both its operating system (Windows) and its Office Suite.

How things have changed

Both parties are probably responsible but nowadays, you can find a significant portion of users that prefer buying Mac computers and either are doing so or they are saving up to do it. Why? Because Apple charges significantly more for its computers than any PC company, both because of the high quality of its product but also because Mac consumers are generally willing to pay the price.

How Apple did it

Unless you have been on another planet, you know that Apple’s comeback did not happen because of the Mac line. It all started off with the launch of the Ipod, the first mainstream MP3 player, which remains to this day known as the one used by almost everyone. Competitors have come and gone, trying every single tactic without coming close to being significant competition. How dominant is it? It currently has 73.8% of the market share with competitors such as Sony, Microsoft, Dell and others all sharing the rest. That is with little spent on marketing, and comparable pricing; truly amazing.

Then came the Iphone, which targets the very important smartphone market. It came a bit later in the game with rival Research in Motion already in the lead with a significant market share.  But Apple produced a high quality product targeting consumers instead of businesses and has exceeded all expectations very quickly.  The Iphone has close to 20% of market share, a very significant portion in such a short time period.

And now, it is time for the Ipad. There are very high expectations for the new product but as we approach the deadline, analysts have been impressed with the previews and have helped Apple shares to move to all time highs in recent days. How high can it go? Difficult to say of course, but given its momentum, I would say that taking over Microsoft does not look like a huge challenge!

The best part about it

Thanks to its product designs and its multiplying fans, Apple has been able to generate such a strong user base that it can count on millions of users of almost any product it would launch as well as get millions more to try its mac line. This makes it easy for developers and content producers to work on their visibility on Apple’s Itunes store which in turn makes Apple’s products even better. I personally do not see an end in sight and already the Ipad is looking more promising than it was initially when it was officially announced in January…

How high can Apple go? Difficult to say, but I would remain a buyer for now…

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