Apple Business Model vs. Microsoft Business Model

Apple Business Model

Check out our other stories on Trending Thoughts. Apple Business Model vs. Microsoft Business Model. A lot of American companies, Apple, Inc. (NASDAQ: AAPL) and Microsoft Corporation (NASDAQ: MSFT) control the crossing of technology and consumer access. Even though they compete across a huge range of sub-industries, such as hardware, mobile devices, operating systems, computing software, advertising, Web browsing, and applications, each company takes its different approach from an organizational aspect.

The Apple Business Model

Apple Logo
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It is hard to recall American business so rigorously dominated by the plans and personality of an individual as Apple company was under the tuition of Steve Jobs. Jobs’ remarkable innovations propelled Apple to unprecedented heights until his passing from cancer in 2011.

During Steve Jobs’ second attempt, he was fired in 1985 and returned in 1997—Apple again revolutionized multiple sub-industries. It took over the Walkman industry from Sony and completely redefined mobile phones when the iPhone was released in 2007.

Apple easily beats its competitors in high-end gadgets and hardware sales. It was very impressive that the company’s 2000s reputation as a nonconformist Macs helped in the growth in millennials of Microsoft in large numbers. Due to the company’s brilliant integration of its products, keeping customers interested using new Apple products and very difficult to switch to a competitor’s interface; this is referred to as the “Apple Ecosystem Lock.”


The weakness of the Apple model is the historic success of the firm’s golden invention: the iPhone. Apple revenue comes from iPhone nearly three-quarters of all, and new innovation hasn’t been accountable to Apple company since its former CEO died and replaced by Tim Cook. However, Cook has been working on preserving Jobs’ legacy and has propelled Apple stock to all-time highs.

The Microsoft Business Model

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For so many years, Microsoft has been dominating this industry for its Windows software; Before the Google browser started dominating the market, Microsoft gave access to Internet Explorer for free, making Netscape and other similar companies the company’s business very low.

The first and most important is the licensing fees charged for use of the Microsoft Office suite and Windows operating system. After a few years of the race against Google and Apple, Microsoft revealed a new vision in April 2014, focused to make Windows software more compatible with the device against competitor products, such as the iPad. 

Microsoft understood that paid software is harder to sell than the age of low-cost substitutes. Phones and tablets are replacing PCs. Microsoft CEO Satya Nadella, telegraphed by telegraphed new business model, one that emphasizes product integration, a “freemium” software package, and a concentration on its cloud computing business.

For example, Microsoft wants customers to be more engaged and fixated on its products. In 2015, CMO Chris Capossela explained this concept with a simple example: “Rather than using Skype on Sunday night to phone home, you are using Skype for messaging 15, 20, 30 times every single day. That’s engagement.”

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