International Business Machines Corp passed Microsoft Corp to become the world's second-most valuable technology company, a reflection of industry changes including the shift away from the personal computer.
IBM's market value rose to $214 billion today, while Microsoft's fell to $213.2 billion, the first time IBM has exceeded its software rival based on closing prices since 1996, according toBloomberg data. IBM is now the fourth-largest company by market value and, in technology, trails only Apple Inc, the world's most valuable company.
Chief Executive Officer Sam Palmisano sold IBM's PC business six years ago to focus on corporate software and services. Though Microsoft has expanded into online advertising and games, it gets most of its revenue and earnings from the Windows and Office software used primarily on PCs.
"IBM went beyond technology," said Ted Schadler, an analyst with Forrester Research Inc. "They were early to recognize that computing was moving way beyond these boxes on our desks."
IBM, based in Armonk, New York, has gained 22 per cent this year, while Microsoft, based in Redmond, Washington, has dropped 8.8 per cent. IBM rose $1.62 to $179.17 at 4 pm in New York Stock Exchange composite trading, and Microsoft fell 13 cents to $25.45 in Nasdaq Stock Market trading.
Apple, which long competed against IBM and Microsoft in the PC business, passed Microsoft in market value last year, on rising sales of iPhones, iPods and iPads. Apple's market capitalization is now $362.1 billion.
IBM's market value rose to $214 billion today, while Microsoft's fell to $213.2 billion, the first time IBM has exceeded its software rival based on closing prices since 1996, according toBloomberg data. IBM is now the fourth-largest company by market value and, in technology, trails only Apple Inc, the world's most valuable company.
Chief Executive Officer Sam Palmisano sold IBM's PC business six years ago to focus on corporate software and services. Though Microsoft has expanded into online advertising and games, it gets most of its revenue and earnings from the Windows and Office software used primarily on PCs.
"IBM went beyond technology," said Ted Schadler, an analyst with Forrester Research Inc. "They were early to recognize that computing was moving way beyond these boxes on our desks."
IBM, based in Armonk, New York, has gained 22 per cent this year, while Microsoft, based in Redmond, Washington, has dropped 8.8 per cent. IBM rose $1.62 to $179.17 at 4 pm in New York Stock Exchange composite trading, and Microsoft fell 13 cents to $25.45 in Nasdaq Stock Market trading.
Apple, which long competed against IBM and Microsoft in the PC business, passed Microsoft in market value last year, on rising sales of iPhones, iPods and iPads. Apple's market capitalization is now $362.1 billion.
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