Apple Vs. Business Model Microsoft

Apple Vs. Business Model Microsoft Business Model: General Review

Apple Vs. Business Model Microsoft More than other American companies, Apple, Inc. (Nasdaq: AAPL) and Microsoft Corporation (Nasdaq: MSFT) dominates the intersection of technology and consumer access. Although they compete across a large number of sub-industry, such as computing software, hardware, operating systems, mobile devices, advertisements, applications, and web search, each company takes a different approach from the perspective of organizations and philosophies.In January 2022, AAPL had a market capitalization of around $ 2.61 trillion. Microsoft briefly set aside Apple as the largest company in the world that drove strength in the growth of the cloud computing business, but MSFT has now fallen to second place at $ 2.17 trillion.

Takeaways key

In 2021, Apple and Microsoft were the two largest companies in the world, alternating the title of the most valuable company in the world.
Both companies have boasted a market capitalization of more than $ 2 trillion.
Apple’s business model is based on innovations and devices centered on consumers. They can maintain their base because of easy-to-use designs and migrate data to new product lines.
Microsoft builds its success in software licenses such as Windows and Office Suite. Their business model has shifted, and they released their own devices to compete with Apple.
Both companies are run differently with different final destinations. Both are very successful and have revolutionized their respective industries.

Apple’s business model

It is difficult to remember the modern American business which is very dominated by the ideas and personality of one individual because Apple is under the supervision of Steve Jobs. The extraordinary innovation from Jobs pushed Apple to an unprecedented altitude until their passing of cancer in 2011.

During the second reign of Steve Jobs – he was fired in 1985, back in 1997 – Apple returned to the relevance and revolutionized many sub-industries. In 2001, the company released an iPod, a pocket-sized device that could accommodate 1,000 songs, and immediately took over Sony Walkman. A few years later, Apple really redefined the cellphone when the iPhone was released in 2007.

Apple is easily the best competitor in terms of selling hardware and high-class gadgets. Thanks to the reputation of the early 2000s of the company in response that was not in accordance with Microsoft, the millennium grew using Mac in large quantities. This is supported by the company’s brilliant pressure in integrating its products, making it easier to keep using new Apple products and thus it is more difficult to switch to competitors’ interfaces; This is sometimes referred to as the “Apple ecosystem key.”

The weakness in the Apple business model lies in the historical success of the company’s gold discovery: the iPhone. Nearly half of all Apple’s income came from iPhone sales, and there were no new innovations that were comparable since the former CEO died and was replaced by Tim Cook. However, Cook has done a good job to preserve work heritage and has pushed Apple stock to the highest of all time.

Microsoft Business Model

Over the years, Microsoft dominated the computer industry with Windows software; Apple is a reflection of more than one generation of operating products. Before Google web browsing began to dominate the market, Microsoft provided internet explorer for free, encouraging Netscape and other similar companies out of business.

Microsoft’s revenue model historically only relies on some main forces. The first, and most importantly, is the license fee charged for the use of the Windows and Microsoft Office Suite operating systems. After a few years increasingly irrelevant in the race against Google and Apple, Microsoft launched a new vision in April 2014, instantly shifting focusing on making Windows software more compatible with competitor products, such as the iPad. Microsoft also has several successful products, highlighted by Microsoft Surface and Surface Pro, which fight with Apple devices such as iPad.

However, moving forward, Microsoft realizes that paid software is a more difficult sales in alternative age low -cost. In addition, tablets and cellphones replace PCs. The newer Microsoft Business model has been elegraded by CEO Satya Nadella, which emphasizes product integration, “Freemium” software package, and concentration in the cloud computing business.

For example, Microsoft wants customers to be more involved and improve in their products.

Special Consideration: Google Business Model

Not surprisingly, the heart and soul of Google’s revenue flow are search engines and web ads. Although Google is not the only company that provides free services and combines them with other items, few do it too or are as successful.

Google’s service initially did not burden any users. Google will attract users and collect their data, and then sell access to enthusiastic buyers throughout this planet. Every marketing firm in the world wants the type of information and repeatedly the use that Google enjoyed. In addition, the company continues to be better and more sophisticated in targeting consumers and businesses, synchronizing preferences, and playing economic matches. In recent years, several costs have been added for storage and other services.

This cost without cost is not only profitable, but very disturbing to Apple and especially for Microsoft. While Apple and Microsoft continue to compete to find better and more innovative products to charge costs to consumers, Google is too happy to find ways to monetize activities where users want to stop paying.

Google does not charge a fee for Android in the US, which is one of the main reasons the manufacturer is very interested in it. The Google Web application, which has a striking similarity with the Microsoft Office program, is also free. Since Google started offering a free operating system and computer software, sales for Microsoft Windows and Office have slowed down.