Technology Rivals Oil in Market Capitalization

Apple Computer, Inc. has continued its innovation-based revenue generating momentum, since replacing Microsoft as the most valuable technology company.  Apple reported net income of $5.99 billion for the first quarter of 2011.  Apple is now the second most valuable company, next to Exxon-Mobil Corp.  With rising fuel prices and significant oil-related profits, this is a significant accomplishment for Apple.

After overtaking Microsoft in market capitalization last year, it passed Microsoft in quarterly revenue last fall, and now has surpassed Microsoft in net revenue.  Technology companies, including Microsoft, Research In Motion, and Nokia, all have become victims of superior innovation and marketing. 

It is notable that, in the case of high technology, disruptive innovation is paramount to continued growth.  If paradigms are considered to be unchangeable and exploitation of “cash cows” is pursued too long, more nimble and innovative companies (Apple and Google for example) can and will take over leadership in the marketplace.

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