Apple overtakes Microsoft to become most valuable tech company

Apple, the maker of iPods, iPhones and iPads, has overtaken the computer software giant Microsoft to become the worldÔÇÖs most valuable technology company.  As of Wednesday, Wall Street valued Apple at $222.12 billion and Microsoft at $219.18 billion. The only American company valued higher is Exxon Mobil, which has a market capitalization of $278.64 billion.  The shift marks a significant turnaround for the fortunes of Cupertino, California-based Apple, following a lengthy domination of the PC market by Redmond, Washington-based Microsoft. The two companies initiated the PC revolution in the 1970s, but Microsoft quickly outgrew Apple to become one of the most profitable businesses in the world.  As Apple struggled to get its products into the mainstream, the consensus in technology circles at that time was that the company should be given up for dead. But the return of CEO Steve Jobs in 1996ÔÇöand a $150 million investment from Microsoft in 1997ÔÇösaw Apple slowly begin to revolutionize the marketplace.  The launch of the iPod in 2001 and the iPhone six years later cemented the companyÔÇÖs position as a firm favorite among consumers. Apple has sold 50 million iPhones since the deviceÔÇÖs launch and has also now sold one million units of its latest innovation, the iPad tablet device, since its launch in April this year.  AppleÔÇÖs shares are now worth more than 10 times what they were a decade ago, while Microsoft's stock price over the past ten years has stayed more or less the same. Although its famous Windows operating system still runs on more than 90 percent of the world's personal computers, analysts say that Microsoft has had little success in attempting to move beyond either Windows or its Office software.  Although Apple still sells computers, twice as much of its revenue is now generated by hand-held devices and music. The technology industry sold a total of about 172 million smartphones last year, compared with 306 million PCsÔÇöhowever, the pace of sales growth for smartphones was five times faster than for PCs.  Microsoft still leads Apple in sales, however. In the latest quarter, Microsoft reported $14.5 billion in revenue compared with Apple's $13.5 billion.  Apple is now facing a new rival in Google, which is competing with it via mobile devices with its Android operating system and mobile advertising. Google is also driving a shift towards internet-connected televisions and a new model of computing which depends on internet applications rather than iPhone or desktop applications.  Apple is currently gearing up for another hotly anticipated launch on June 5ÔÇöthe unveiling of the fourth-generation iPhone.  Founded in 1975 in Albuquerque, New Mexico, Microsoft employs 88,180 people worldwide. Founded in 1977, Apple currently employs approximately 35,000.