I, Cringely » Blog Archive » Masters Tournament - Cringely on technology

I, Cringely » Blog Archive » Masters Tournament - Cringely on technology

“What I can’t figure out is why he (Steve Jobs) is even trying (to be the CEO of Apple)? ” wondered Bill. “He knows he can’t win.”

It is easy to see what Gates meant if you look at a comparison of the two companies in June, 1998. Microsoft stock was around $29 with a market capitalization of $250 billion. Apple’s stock was at $7.25, triple what it had been a year before when Microsoft had stepped-in to bolster Apple with a $150 million investment, but still worth a market cap of only $6 billion. In terms of products, market share, cash flow, and general strategy Microsoft had it all over Apple in 1998 and the idea that Jobs would ever catch up to Gates was, at the time, ludicrous.