The market success of iPhone and iPad has facilitated Apple to add yet another landmark to its victory voyage. The recent market evidently indicates the success story of tech giant, Apple Inc. as it has surpassed Microsoft in market capitalization and become most valuable tech firm. Apple has tried and built an ecosystem and has arrived as an undisputed leader in technology sphere.
After three long decades of rivalry with its contender, Apple is lastly leading at Nasdaq. The recent statistics point out that the current valuation for Apple capitalization stood at $222 billion against Microsoft's valuation of $219 billion.
Apple actually started out as a much larger module than Microsoft, but was taken over in 1989 and until now; people generally assumed when the two companies compete head to head, Microsoft is going to taste victory. But, in May 2010, Apple's market capital has exceeded that of Microsoft for the first time ever.
Numerous reasons can be cited for the same!
Where Apple has focus on the high-end of the consumer market and building an excellent consumer product; Microsoft's focus is highly on the products largely meant for large businesses which don't drive valuation. The disparities in the view point and perception however has helped Apple to mark a stunning comeback over Microsoft. Let's explore this in more depth.
Why Apple Succeeded
Close look on key drivers of market and then bringing the focused products for the same are quintessential for any company to taste success and this is what has largely helped Apple. When Smartphone was emerging as the buzzword, Apple brought its iPhone with distinctive features and excellent quality to bang the market. The design was not only unique but the gadget eventually emerged as a luxury symbol.
Apple has a wide spectrum of its products catering to different segments and excel in bringing the products that eventually charm the users. Let it be iPhone or iPad, vendor excels in bringing the product that raise the bar of performance for everyone else in the competition. iPad's success stories even made users to forget the milestone achieved by iPhone.
Why Microsoft Slipped
Contrary to Apple's approach, Microsoft was not really focusing any consumer oriented product. Due to lack of innovation and some mistakes, Microsoft is losing its market monopoly. While Apple is concentrating on end users who buy their technology, Microsoft is increasingly split between OEMs (those that built PCs), retailers, IT buyers, and users who all often have conflicting needs.
Conclusion:
Though Microsoft is still profitable, Apple's profit margins are wider. Microsoft should focus on its user products. Moreover, with the development of touch operating system, the company can rejuvenate the appeal of Windows, gaming experience on Xbox and utility of tablet PCs. It's time for Microsoft to amend its market strategies and policies and transform it in a tech visionary company and to rule as a leader in technology gamut.
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