Apple Inc's phoenix-like rise from the ashes has propelled its market value to USD 180 billion, raising the possibility that it could challenge Microsoft Corp for the technology crown.

Microsoft is now the world's most valuable tech company with a commanding market capitalization of USD 250 billion. Its Windows software is in nine out of 10 personal computers.

It would take impressive execution for any company to unseat Microsoft at the top of the technology heap. But Apple, flush with cash and fat margins, has catalysts in the iPhone, the Mac PC and a highly anticipated but unconfirmed tablet device expected to launch next year, analysts and investors say.

"Apple's revenue growth continues to outpace, driven by market-changing innovation and sticky software offerings that lead to repeat purchases," said David Dillon, a portfolio manager at HighMark Capital Management, which owns both Apple and Microsoft shares.

He said Microsoft is more of a value-based play, with "a strong product cycle coming with Windows 7."

Apple's revenue is still far smaller than that of its arch nemesis, but it is growing at a more rapid rate. Apple's annual revenue has more than doubled since 2005 to USD 36.5 billion, with earnings per share up more than four-fold to USD 6.29.

Over the same period, Microsoft's revenue has risen 47% to USD 58.4 billion, with EPS up 45% to USD 1.62.

Barton Hooper, an analyst with Weitz Funds, which owns shares of Microsoft but not Apple, called the giant software company a "moderate growth story" with a strong balance sheet.

"The rate of growth of Microsoft isn't happening nearly as fast as it is for Apple," he said. But he noted that Microsoft still has solid growth drivers, such as the corporate PC refresh cycle and its server and tools business.

Apple trades at around 24 times forward earnings estimates, as does Google Inc, which has a similar market capitalization and is viewed as another potential challenger to Microsoft. Microsoft trades at roughly 16 times forward earnings.
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