IBM overtakes Microsoft in market cap after 15 years; Apple leads

24 May 2011

International Business Machines (IBM) has edged out Microsoft Corporation in market value for the first time since April 1996, emerging as the second most valued technology company after Apple Inc, which has shot up to top slot overtaking all major technology companies.

Apple's market value stood at $309.2 billion as of Monday while IBM had a market capitalisation of $203.8 billion and Microsoft $203.7 billion, according to Reuters data.

Overall, IBM now ranks fourth in terms of market capitilisation in the US after oil giant Exxon Mobil Corp ($397.4 billion), Apple, General Electric Co ($205.6 billion).

IBM ranked No 1 in the computer industry for decades until it met its software counterpart Microsoft Corporation.

IBM, which hired Microsoft to provide operating software for its new range of personal computers in the early 1980s, ended up as second to Microsoft in market value by the later part of the 1990s.

Microsoft, powered by Bill Gates grew on the strength of software that came to dominate computer world. By the close of the 20th century, Microsoft had emerged the most valuable technology company with a market cap thrice that of IBM.