Apple Vs Microsoft

Introduction

Microsoft and Apple are in the electronic equipment industry, and have a NAICS code of 334111. Microsoft participates in the provision of developing and marketing software and hardware services. These products include, computers, phones, and intelligent devices. They also specialize in everyday software products such as Excel, Word, and PowerPoint. Microsoft’s target market is expansive. The Microsoft Suite is aimed for anyone that can use a computer. According to Yahoo Finance, Apple is considered to be one of Microsoft’s main competitors and allies in this industry. Apple engages in the design and manufacture of cell phones, media devices and computers. Some of the products designed and manufactured by Apple includes the iPhone, iPad, Mac and Apple watch.They also have consumer and professional software applications under the iOS, OS, and X brands. However, Apple also implements many of Microsoft’s software like Word and Excel in their products. Apple’s target market is very broad. They make their products for people of all ages that are consumer involved with simple innovative technology.

As a business, not only is Apple Inc. (AAPL) significantly bigger than Microsoft Corporation (MSFT), but also has been growing at a fast pace. However, looking into investment opportunities, Microsoft has been outstanding. While the forecasts mention increase in growth for Microsoft Corporation over the next few years as indicated below, Apple Inc. is forecasted to decrease in earnings of growth, because of the fall in sales the company had recently experienced as shown in its September Balance Sheet. This decline as mentioned by Mozur & Perlez in 2016, growth in the smartphone market is reaching its limit and China is not enough to maintain Apple Inc.’s growth.While Apple Inc. reported to be one of the most profitable companies in the United States, the market is slowing down and so is growth. Many economies around the globe are facing symptoms of a recession. The U.S. dollar’s strength is contributing to fall in revenue for US-based organizations, such as Apple Inc. and Microsoft Corporation.

Current News

We decided to choose Apple and Microsoft because they are two big companies in the electronic equipment/business software industry. An article on Zacks states that Apple has a grade ‘A’ for value and growth. Although Apple did not have a desirable last half of 2015, Zacks states that Apple is predicted to heavily grow in next upcoming years in many different areas. First of all, Apple increased to 16.2% in 2015 from 14.8% in 2014. Not only that, but in the smartphone market Apple is also catering to cost conscious customers by introducing the iPhone SE. Apart from the iPhone, Zacks states that Apple is introducing and growing in their different products such as Apple Watch, Apple Pay, Homekit, Healthkit, Apple TV,