Microsoft and Apple Rumble Into Middle Age

Hugh Pickens writes "Bill Briggs writes on MSNBC that the two tech titans are rumbling into middle age as Microsoft marked its 35th birthday on Sunday and Apple turned 34 late last week. But while Microsoft, to some, appears a tad flabby in the middle — a Chrysler Town & Country driver with a 9 pm bedtime — Apple, in some eyes, looks sleeker and younger — a hipster in a ragtop Beemer packed with chic friends sporting mobile toys. 'The difference between the two companies is that Apple has been fearless about transformational change while Microsoft has been reluctant to leave its past behind,' says Casey Ayers, president of MegatonApps. 'Microsoft has always been loath to change and risk alienating some of its customers, but its inability to leave the past behind has left their product line bloated and dysfunctional.' On current accounting ledgers, Microsoft overshadows Apple: Microsoft's market cap is $255.75 billion; Apple's is $213.98 billion. But Apple is getting awfully big — awfully fast — in Microsoft's rearview mirror. Consider that a decade ago Microsoft's market cap was almost $590 billion and Apple's was about $16 billion. So while Apple cheered its opening weekend of iPad sales, what wish should Microsoft have made when it blew out its birthday candles Sunday? 'More than anything, Microsoft's birthday wish should be for fearless leadership,' says Ayers. 'Without someone at the top who feels an urgency to constantly innovate in meaningful ways, Microsoft will shrink and become less relevant with each birthday to come.'"

Comments

Not as much competition as you'd think...

[Angst Badger]

Apple has basically avoided the corporate market, which is where most of Microsoft's money is made, however much ground they are gaining in the home market. Toes are being stepped on, to be sure, but I just don't see Microsoft and Apple as being on a collision course for the most part. Given the conservative nature of the corporate market, what's much more likely is that Apple will end up as the dominant home player, at least for a while, and Microsoft will follow IBM into being solely a corporate player.

The danger to Apple is that very large enterprises always ossify, and the market they are coming to dominate in the short term -- which is basically home entertainment electronics -- is vastly more competitive and unstable than the PC market has ever been (or likely ever will be). When much of your appeal is driven by current fashion trends, you're vulnerable in a way that a vendor of business software seldom faces.

Note that I'm not saying Apple is doomed or any similar nonsense. Apple is doing very well and probably will continue to do so for some time, and Microsoft will probably continue its slow decline. What I'm saying is that Microsoft and Apple are less and less in competition with each other. Apple will probably spend a lot more time in the future competing with companies like Sony and JVC and LG than it does with Microsoft, and they'll most likely do very well, at least as long as Jobs is at the helm. After Jobs, I'm rather less sanguine about Apple's future because people like Jobs (or, for that matter, Gates) tend not to groom their successors very well.