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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

The empire strikes back: Microsoft returns to top

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Microsoft is back at the top of the technology world to close the gap with Apple, some three years into a transformation of the onetime leader by chief executive Satya Nadella. Microsoft regained its title as the world’s most valuable company when it closed on Friday at a higher market value than Apple for the first time since 2010. At Friday’s close, Microsoft’s market capitalisation was $851.2 billion, having tripled in value since Nadella took over in early 2014.


Apple’s valuation stood at $847.4 billion, having dropped some 20 per cent in the past eight weeks. Not far behind were Amazon ($826 billion) and Google parent Alphabet ($763 billion).


In the 1990s, Microsoft held the crown as the top tech firm and most valuable company as it powered the revolution in personal computers with its Windows operating system.


In recent years, it appeared headed to obscurity after failures in mobile computing, while Apple, Google and Amazon saw their fortunes rise.


Analysts say patience, diversification and the willingness to jettison failing ventures helped fuel Microsoft’s surge.


“Microsoft is firing on all cylinders right now,” said Jack Gold, technology analyst with J. Gold Associates.


“Satya Nadella has been doing a fantastic job in leading them away from dead-end areas and being more innovative.”


Microsoft still draws considerable revenue from Windows, the software that powers the vast majority of PCs.


But it has leveraged its position to bring business customers to its cloud computing platform known as Azure, and has developed a steadier revenue stream from its Office software suite.


“Azure has been really big for Microsoft,” Gold said.


Microsoft has become far less dependent on a single product than in the past, with strong growth from its cloud services and revenues from its Xbox gaming business, Bing search, Surface tablets and PCs, as well as the professional social network LinkedIn acquired in 2016.


A big part of Microsoft’s transformation came when it decided to throw in the towel on its Windows mobile phone business after acquiring the device business of Nokia but failing to get a foothold in the sector dominated by Apple and Google-powered Android smartphones. “I think Satya Nadella exercised extraordinarily good judgment,” said Roger Kay, a consultant and analyst at Endpoint Technologies Associates. —AFP


Rob Lever


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