Apple has passed Microsoft in terms of market capitalization, with a value of roughly $222 billion, about $3 billion ahead of Microsoft, as of trading near the end of the day on Wednesday.
Apple had been flirting with the milestone for days and had already passed Microsoft by another measure — a valuation known as enterprise value, which adds in debt and other factors.
As for Microsoft, the company remains highly profitable, but investors and analysts alike are concerned that Microsoft remains dependent on its Office and Windows franchises for the lion's share of its profits. The company has poured billions into its mobile phone, online advertising and other new businesses that have yet to really help the company's balance sheet.
For more on this story, see Apple passes Microsoft in valuation on CNET News.