San Diego-Tech

What a long, strange trip it’s been.

Apple’s market capitalization officially passed Microsoft’s Wednesday afternoon, making the Cupertino, California, company — for the first time — the largest technology company in the world.

With a market cap of $241.5 billion versus Microsoft’s $239.5 billion, Apple also became the second-largest company on the S&P 500, according to Standard & Poor’s analyst Howard Silverblatt. At the moment, only Exxon Mobil is bigger.

Market cap is a measure of the total value of all the outstanding shares of a company, and it’s a proxy for what investors think the company is worth, taking into account future earnings and future growth. As such, it’s a measure of expectations, not reality: Apple’s annual revenue was $42.9 billion in the most recent fiscal year, versus Microsoft’s $58.4 billion. Both look puny next to Exxon Mobil’s $301.5 billion in annual revenue.

Market cap is also a fickle mistress, and fluctuates wildly depending on stock price, so Apple’s position as the king of the hill may be short lived.

But it’s a significant milestone for a company that looked like a has-been just one decade ago.

Ten years ago, Apple was all but written off by most expert commentators. An also-ran computer company that once dominated geeks’ hearts and minds with the Apple II and the Macintosh, Apple made serious missteps in the 1990s that relegated it to a tiny niche of the overall computer market, with market share in the low single digits. It was all but certain that its share would continue dwindling until the company faded away entirely, like Commodore, Atari, Tandy and dozens of other computer makers before it.

What the commentators didn’t count on was the string of hits Apple would deliver over the next 10 years. Founder Steve Jobs returned to Apple in 1996 and removed then-CEO Gil Amelio in 1997, making himself interim CEO (and then eventually dropping the interim title).

Jobs then instituted what can now clearly been seen as a far-reaching strategy to consolidate and simplify Apple’s product line, while gradually leveraging the company’s strengths (ease of use, consumer-friendly branding, attractive design, and high margins) to expand into new areas of consumer technology.

Jobs also carefully created a new company culture, one that’s centered on innovation, control and secrecy. That approach has alienated many people — and runs counter to Silicon Valley received wisdom about the value of openness and sharing — but the proof is in the pudding. With a CEO of Jobs’ caliber, at least, that kind of top-down control works.