Software Does Not Measure up to Hardware
With the recent release of Microsoft’s initially quarter results, for the initially time in 20 years Apple has higher revenue than Microsoft. Apple is historically a hardware company that has change the landscape of computing across the globe with the iPad, iTouch and iPhone gadgets. Microsoft is a software company that produced the most widely-used operating system, Windows.
The Grueling Electronics Industry
With this recent breakthrough by Apple, they are proving that the electronics hardware industry is hard to enter and even more hard to maintain amongst a wave of commoditization that continues to devastate sales while whittling profits.
Both Companies are significantly On the rise
Despite these impressive numbers, Microsoft is a on the rise company, just not at the speed of Apple. Microsoft did have a strong quarter, but not as a strong as Apple who leads in two major financial metrics: revenues and market value. For its monetary third quarter, Microsoft’s revenue rose to $16.4 billion from $14.5 billion, a 13 percent increase.
On the additional hand, Apple’s revenues for the quarter were at $24.7 billion up from 83 percent in the same quarter in 2010. Analysts are predicting the next quarter revenues to be approximately the same. Apple’s current market value is worth $319.5 billion while Microsoft is at $224.4 billion, nearly $100 billion more.
A Evaluation of the Two Companies
Apple is a company with a primary focus on hardware while Microsoft play the role of primarily a software developer. Apple is proving to be on the rise quicker in the hardware segment due to the leveraging of its name and image to continue building a large and loyal fan base. These buyers usually pay a premium compared to Windows users.
Apple’s Unrivaled Success
Despite their hardware focus, the company is more of a community developer providing equipment that improves the usage of electronic products for specific applications. Apple has progressed to become the largest and most valuable technology organization in the world. Therefore, success in the electronic industry is based on brilliant hardware, a phenomenal ecosystem, a community of users and software that is the glue that binds it together.
Finding a solid balance between the four aforementioned requirements will result in a successful electronics organization. As Apple and Microsoft continue to battle in the world of technology, the consumer reaps the benefits of new innovative technology that can make our lives much simpler.
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