Boeing's Decline and the Rise of Tech Giants
Evaluating the Changing Dynamics of Aerospace and Technology Industries
Boeing was founded almost a century ago, whereas Microsoft and Apple, the current leading companies, were founded more than seventy years later. Despite Boeing's earlier establishment, Microsoft and Apple have surged far ahead of it.
As of June 2024, market cap:
-Apple - $3,285 Billion
-Microsoft- $3,218 Billion
-Airbus - $121.35 Billion
-Boeing - $110.92 Billion
This makes Apple the most valuable company by market cap, Microsoft the second, Airbus the 121st, and Boeing the world's 137th most valuable company.
Once a titan in the aerospace industry, Boeing now lags way behind. This decline is particularly striking compared to the meteoric rise of tech giants such as Microsoft and Apple. The rate of growth has been the most striking phenomenon.
The comparison between Boeing and Microsoft's valuations over the past two decades showcases a striking contrast in their growth trajectories. In 2001, Microsoft held a significant lead over Boeing, with a market capitalisation of $358 billion compared to Boeing's $30.94 billion. However, by 2024, the gap had widened considerably, with Microsoft's worth soaring to an astonishing $3.5 trillion, while Boeing's valuation stood at a mere $115 billion.
Apple, Microsoft, Boeing, and Airbus trajectories diverge significantly when plotted on a graphical line chart. They do not even compare. Microsoft and Apple have experienced a substantial surge, while Boeing has lagged behind.
Apple and Microsoft are closely competing in their respective domains, while Airbus and Boeing seem on unequal footing. Despite Airbus's steady growth, Boeing's fortunes have been declining. This discrepancy raises the question of whether investing in Boeing is prudent.
This paper attempts to analyse this situation: Boeing's Current Situation: Etiologies, Remedial Measures, and Future Direction.
Some recovered quickly during the 2021-22 pandemic, while others struggled.