Introduction
Apple and Microsoft are the two major companies and competitors in a computer industry. Today, an Apple versus Microsoft topic is a common debate among customers, who ask the following questions: Which computer is better: Mac or PC? What are their advantages and disadvantages? Therefore, it is important to compare and contrast these two companies to better understand their position in the market. While Microsoft focuses on the development of software applications and licenses, Apple is more engaged in the presentation of products with unique design and value.
Profit Sources, Products, and Business Approaches
Being developed and motivated by genius persons, both Apple and Microsoft are American electronics companies, providing great products. Bill Gates, a co-founder of Microsoft, managed to implement an idea of offering personal computers to every person. Steve Jobs, a pioneer of Apple, proved to be successful in transforming his small company into a global leader of electronic communications (Payne, 2017). Another similarity between these competitors is their approach to producing smartphones and media players. Microsoft has Zune HD that competes with Apple’s iPod Touch. As for tablet devices, Apple’s iPad and Microsoft’s Surface have similar gadget characteristics and belong to a premium category. Experts believe that Microsoft will overtake Apple in the smartphone market (Ibarra & Rattan, 2018). However, compared to more than 500 stores of Apple all over the world, Microsoft had about 100 stores, but it was decided to move to a digital-only model because of COVID-19.
Microsoft’s main source of profit is not the sale of the Windows operating system, the best years of which seem to be behind. For this company, a more important role is played by the sale of software for business, as well as for working with networks. In combination, they account for more than half of Microsoft’s total revenue (Ibarra & Rattan, 2018). At the same time, a significant part of personal computers sold earlier runs under Windows, and it is this part of the market that ensures a constant influx of customers to the Microsoft Business Division. This division holds the responsibility for the design and sale of software programs. In turn, the Server and Tools division produces and releases tools for networking, service applications, and other related areas.
Although office software is also produced by Apple, this company does not yet have such a wide client base. Therefore, software tools are not sold in such impressive volumes as those of Microsoft. On the other hand, Payne (2017) stresses that selling application software is not a priority for Apple. The company’s policy is aimed specifically at the implementation of various devices, and software development is a way to maintain an interest from customers. Apple attracts more investors than Microsoft, even though the latter is larger in size and continues to dominate the electronics market (Payne, 2017). Before the conclusion, it should be stated that Apple’s ability to create a special, innovative category of devices, like the iPhone and iPad, carries far more market weight than Microsoft’s steady stream of revenue from an already mature market.
Conclusion
To conclude, Apple and Microsoft are the two leading companies that operate in the electronics industry. Even they have similar products in such categories as smartphones, personal computers, media players, and software, the companies differ in their focus on development and the outlook regarding the future. Microsoft has the highest profits from software for businesses, and Apple’s unique technology and design allow it to be a leader in selling devices. The strong competition between Microsoft and Apple motivates them constantly develop and implement new ideas in their products, which is beneficial for customers and these companies.
References
Ibarra, H., & Rattan, A. (2018). Microsoft: Instilling a growth mindset. London Business School Review, 29(3), 50-53.
Payne, B. (2017). Brand positioning and its usefulness for brand management: The Case of Apple Inc. Newcastle Business School Student Journal, 1(1), 51-57.