Apple Is the New Microsoft, Part 2 (Updated)

Apple surpassed Microsoft two months ago as the world’s most highly valued tech company, and is now challenging the Redmond giant on another key metric: In a blowout third quarter, AAPL posted record revenue of $15.7 billion, which should be close to or exceed what Microsoft reports on Thursday.
Apple’s quarter easily surpassed consensus expectations, per Thomson Reuters, posting net income of $3.25 billion, or $3.51 per diluted share. Gross margins were down slightly year over year — 39.1 percent compared to 40.9 percent — and international sales accounted for more than half of all business, 52 percent.
The Thomson Reuters consensus for Microsoft’s revenue is $15.27 billion. Among the 29 analysts polled, the highest estimate was only a tad above what Apple has actually reported, at $15.74 billion. As of today Apple still has a higher market capitalization than Microsoft, but not by much.
Apple’s hardware story in the 3rd quarter is equally impressive:

Apple Passes Microsoft as World’s Largest Tech Company

What a long, strange trip it’s been.
Apple’s market capitalization officially passed Microsoft’s Wednesday afternoon, making the Cupertino, California, company — for the first time — the largest technology company in the world.
With a market cap of $241.5 billion versus Microsoft’s $239.5 billion, Apple also became the second-largest company on the S&P 500, according to Standard & Poor’s analyst Howard Silverblatt. At the moment, only Exxon Mobil is bigger.

Apple shares slide as iPhone 4 concerns grow

A customer looks at an iPhone 4 at the Apple Store 5th Avenue in New York, in this June 24, 2010 file photo.

Credit: Reuters/Eric Thayer/Files

By Carolina Madrid and Gabriel Madway

LOS ANGELES/SAN FRANCISCO | Tue Jul 13, 2010 3:05pm EDT

LOS ANGELES/SAN FRANCISCO (Reuters) - Shares of Apple Inc slid more than 4 percent on Tuesday after a poor review for its iPhone 4 from an influential consumer guide underpinned mounting complaints about the hot-selling device's reception and spurred speculation about a product recall.
Analysts thought a recall unlikely but said the world's most valuable tech company needs need to move quickly to avert longer-term damage to its widely respected brand, which allows it to charge a premium for products like the iPad and iPod. The stock should recover on Wednesday, some said.
Consumer Reports said on Monday it could not recommend the iPhone 4 -- which sold 1.7 million units worldwide in its first three days -- after its tests confirmed concerns about signal loss when the device is held in a certain way.