Apple And Microsoft, More Than Any Other American Company, Have A Common Vision Of Technology And Customer Access.

Business Model Of Apple, Although they compete in a wide range of sub-industries such as computing software, hardware, operating systems, mobile devices, advertising, applications, and web browsers, each company takes a different approach from an organizational and philosophical perspective.

As of August 2021, the stock market value of Apple Shares (AAPL) was about $ 2.43 trillion. Relying on its strength to grow its cloud computing business, Microsoft overtook the world’s largest company for a short time, but Microsoft’s stock symbol (MSFT) has now dropped to second place with $ 2.15 trillion.

Important Notes

• Apple and Microsoft are the two largest companies globally, which alternately carry the title of the most valuable company in the world.
• The market value of both companies is more than $ 1 trillion.
• Apple’s business model is based on innovation and customer-centric devices. These devices can maintain their base due to the ease of designing and transferring data to the new product line.
• Microsoft has achieved its success by licensing software such as Windows and Office Suite. The company’s business model has changed, and they are launching their devices to compete with Apple.
• Both companies are run with different end goals. Both are very successful and have revolutionized their respective industries.

Apple Business Model

It is hard to imagine a modern American business dominated by the ideas and personality of one person as Apple under Steve Jobs. Jobs’ amazing innovations took Apple to an all-time high until he died of cancer in 2011.

During the second term of Steve Jobs – he was fired in 1977 and returned to the company in 1985 – Apple regained its former position and transformed several sub-industries. Apple took over the management of Sony’s Walkman industry, and when the iPhone was introduced in 2007, it came up with a completely different definition of a mobile phone.

Apple easily outperforms its competitors in terms of sales of high-end hardware and gadgets. Thanks to its reputation in the early 2000s in an inconsistent reaction to Microsoft, the company greatly contributed to the growth and development of the millennial generation with the introduction of the Macintosh operating system.

This was strengthened by the company’s clever insistence on integrating its products, making it easier to use Apple’s new products, making it more difficult to switch to competitors; This is sometimes referred to as the “Apple ecosystem lock.”

The downside of Apple’s business model lies in its historic success and golden initiative, the iPhone. About three-quarters of Apple’s total revenue comes from iPhone sales, and no comparable innovations have been made since the death of its former CEO and the replacement of Tim Cook. However, Cook has done a good job preserving Jobs’s legacy, pushing Apple shares to the top.

Microsoft Business Model

For years, Microsoft dominated the computer industry with its Windows software. Take control of the market before Google web browser; Microsoft released Internet Explorer for free, shutting down Netscape and other similar companies.

Microsoft’s revenue model has historically relied on only a few key strengths. The first and most important of these is the cost of licensing the Windows operating system and the Microsoft Office suite.

Microsoft unveiled a new perspective in April 2014 and immediately shifted its focus to making Windows software more compatible with competing products, such as the iPad. Microsoft also has several successful products, such as Microsoft Surface and Surface Pro, competing with the iPad.

Though Microsoft has come to realize that selling paid software in the age of low-cost alternatives is difficult. In addition, tablets and phones are replacing personal computers. Microsoft’s newer business model has been announced by Microsoft CEO Satya Nadella, emphasizing product integration, freemium, and a focus on the cloud computing business. For example, Microsoft wants to get customers more involved with its products.

 Google Business Model

As expected, Google’s main revenue stream is its search engine and web ads. While Google is not the only company that offers free services and combines them with other products, some companies do it well and successfully. From the beginning, Google services did not cost the user anything. Google attracts and entices users, collects their data, and then sells access to this information to avid buyers worldwide.

In addition, the company is getting better and more sophisticated in targeting customers and businesses, synchronizing priorities, and delivering business. In recent years, costs for storage and other services have increased.

This free model is not only profitable but also very destructive for Apple and especially Microsoft. While Apple and Microsoft continue to compete for better and more innovative products to get paid by customers, Google is pleased to make money from activities that users are reluctant to pay for.

Google does not charge any fees for Android in the United States, which is why manufacturers are interested in it. Google Web Apps, which are very similar to Microsoft Office apps, are also free. Sales of Microsoft Windows and Office have slowed since Google began offering free PC operating systems and software.