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Market value of Google surges ahead of Microsoft

Market value of Google surges ahead of Microsoft

Monday 1st October 2012 was a memorable day for Google as the company’s market value surged ahead of Microsoft. This is the first time that Google has had a greater market value than Microsoft, with a closing value of $249.9 billion. Microsoft ended Monday with a market value of $247.2 billion.

This increase in value for Google could be another indication that mobile technology and online ads are leading the way for the technology sector, rather than hardware. However, the company with the largest market value is still Apple, with a value of $618.1 billion thanks to the popularity of the iPad, iPod and iPhone. According to analysts, Google may have enjoyed massive success due to its mobile market share, with two thirds of all smartphones which are sold around the world having the Android operating system. At the lower end of the market, Windows is responsible for four per cent of the mobile market. Google has also been a leader of the computing market and web-based software, which has contributed to its success.

In 2011, Microsoft had sales of $30 billion for Microsoft Office and Windows. However, Google predicts that its mobile sector will earn that same amount of revenue on its own. The main business of Google is its search and targeted ads. The search engine is responsible for 66 per cent of search traffic across the globe, while Microsoft Bing comes in second place with 16 per cent of the search market. The success of Google ensures its place in the search engine optimisation of many companies. Bing and other search engines also feature in the SEO campaign of companies.

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