Having seen its market value overtaken by Apple, the company it once virtually kept alive in order to avoid a monopolies investigation, stalling software giant Microsoft is now looking over its shoulder at advertising behemoth Google.

Google's market capitalisation briefly surpassed that of Microsoft in Monday's session. Bill Gates's tech company was, however, able to regain its position at the market close with a total value of $249.49bn as Google dropped back to $248.34bn. Both companies compete in the search market, with Microsoft's Bing product going head to head with Google's eponymous search engine, and in mobile, where Microsoft's Windows operating system lags well behind Google's market leading Android system.

Thus, the two companies will continue to battle it out in the US for the position as the second most valuable tech company by market cap. They settled far behind Apple whose innovation in both the mobile market via the iPhone and its popular tablet iPad have spurred the company to a whopping market cap of $625.35bn as of yesterday's close.

Yet the company founded by Steve Jobs (who died one year ago this coming Friday) recently took a blow as the current Chief Executive Officer Tim Cook apologised for a disappointing mobile map application on the new iPhone that was meant to compete with Google Maps. "We are extremely sorry for the frustration this has caused our customers and we are doing everything we can to make Maps better," Cook said at the same time that, in an unusual move for the company, he also recommended using rival services such Google Maps or Microsoft's Bing among others.

Seeing as Apple once brought out an iPhone which, depending on how you gripped the handset, was reportedly unable to make phone calls, it is unlikely that the Maps fiasco will have much effect on the popularity of the device.

The iPhone 5 rolled out the new iOS 6 operating system update to its mobile platform but the maps application was dogged by geographical errors and gaps in information. It also disappointed users with its lack of popular Google Maps' features such as public transport directions, traffic data and street-views.

In any case, while Apple has little to fear for the moment in terms of company value, Google and Microsoft will continue to move neck-and-neck in the market cap race. All three companies are popular with analysts holding an average recommendation of overweight or buy, according to Factset Research.

JM

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