Why Apple Is More Valuable Than Google

A look at what's behind the Mac and iPhone maker's now firm market-cap edge on the Web-search leader, and how it could one day challenge Microsoft

Now that Apple (AAPL) has once again passed Google (GOOG) in market value, can the consumer-electronics maker maintain its lead?

While Apple's capitalization has risen above that of Google for short bursts in the past, it has remained higher since July 22. As of Aug. 11, Apple was worth $145.87 billion, compared with Google's $143.40 billion. This could be a momentary shift in Wall Street's whims—like when Cisco Systems (CSCO) briefly surpassed Microsoft (MSFT) to become the world's most valuable company in 2000.

More likely, Apple has more solidly unseated Google as tech's No. 2 powerhouse and is now on track to one day challenge Microsoft for the crown. While both Apple and Google are likely to remain highly valuable in the coming years, there's reason to believe that Apple may outshine Google in the eyes of investors.

Read the full story at Business Week by Peter Burrows