Apple vs Microsoft

Microsoft has been at the top of the heap for almost as long as people have used PCs. They’ve managed to sustain an overwhelming competitive advantage.On the other hand, Apple who had been striving hard finally surpass arch-rival Microsoft in becoming the world's biggest technology company.

Changes in the share price values of the two:- 

Value of Apple by investors is at $222bn (£154bn). 
Microsoft is now valued by investors at $219bn.

However Microsoft still enjoys higher profits than Apple. Its most recent annual net profit was $14.6bn, compared with $5.7bn for Apple. Microsoft also reported bigger full-year revenues of $58.4bn, with Apple on $36.5bn.

Is Apple really making a dent in Microsoft’s long-standing Windows monopoly? 

Are mobile devices like the iPhone and iPad taking over tasks that used to be done by PCs?

Apple is still gaining on Microsoft, thanks to iOS-based devices. 

There’s no doubt that the Mac has been a big success for Apple over the past couple of years. While Microsoft was stumbling with Vista, Apple used a very aggressive advertising campaign that resulted in considerable growth. Apple’s overall share of the Internet  continues to go up steadily, thanks to mobile devices like the iPhone and iPad. Added together, Apple’s iOS has been a clear winner. It will be interesting to look at these figures again in a year.

                          Data provided by > Net Market Share

The mobile Internet is growing at an astonishing rate. 

This was the most fascinating result that should have Microsoft most concerned. Back in 2007, Internet traffic from mobile devices was nearly nonexistent; today, mobile operating systems account for nearly 3% of all Internet traffic. The percentage of Internet usage on mobile devices has been doubling every eight months or so. Due to the trend, it is easy to imagine a world in which mobile devices consume 20% or more of total Internet usage within the next two or three years.

                          Data provided by > Net Market Share


So where is all that traffic coming from? 

Not surprisingly, Apple’s iOS-based devices (IPhones,IPads) are the leader in the mobile category, as measured by usage, accounting for 42% of the total traffic from mobile sources.

We are indeed moving rapidly into a world where mobile devices are taking over many tasks that were previously handled by PCs. This is a market that is only beginning to explode, which means things can change very quickly. For instant, the quick response of Microsoft jumping into this space so aggressively with Windows Phone 7.

Questioned on the news that Apple was now a bigger company, Microsoft's chief executive Steve Ballmer said his firm would continue to follow a long-term strategy.

"It's a long game, we have good competitors... we too are a very good competitor," he said.

"We are executing very well and that is going to lead to great products and great success."

References:

http://www.bbc.co.uk/news/10168684

http://www.zdnet.com/blog/bott/microsoft-vs-apple-whos-winning-the-numbers-dont-lie/2504