Sunday, February 22, 2015

Regarding that OMG insane market cap of AAPL

Just been poking around the intarwebz learning about the history of markets and so on, when I stumbled across something interesting.

General Electric's market cap in March 2001 was $477 billion.

With inflation, that would equal about $650 billion today.

Which is around the level of Apple's market cap today.

Sure, GE builds important electrical equipment and stuff, while Apple just does stupid phones. And mobile computing. And music. And stuff in general.

Then again, Apple doesn't face the competition that GE faces. Yeah, a few other companies make smartphones too, but there's a cachet in the i-phone* that there isn't in, say, GE roadway lighting luminaires: Cooper and Hubble compete in that sector quite well against GE products, while nothing really sits at an equal level with the i-phone. So there's margin at Apple that there really isn't at GE.

So just keep that in mind when you hear talking heads crowing about Apple's market cap.

* - I refuse to use camel-case in this post. Camel-case is unnatural and against god's plan.

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