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How, and Why, Apple Overtook Microsoft

HughPickens.com writes James B. Stewart writes in the NYT that in 1998 Bill Gates said in an interview that he "couldn't imagine a situation in which Apple would ever be bigger and more profitable than Microsoft" but less than two decades later, Apple, with a market capitalization more than double Microsoft's, has won. The most successful companies need a vision, and both Apple and Microsoft have one. But according to Stewart, Apple's vision was more radical and, as it turns out, more farsighted. Where Microsoft foresaw a computer on every person's desk, Apple went a big step further: Its vision was a computer in every pocket. "Apple has been very visionary in creating and expanding significant new consumer electronics categories," says Toni Sacconaghi. "Unique, disruptive innovation is really hard to do. Doing it multiple times, as Apple has, is extremely difficult." According to Jobs' biographer Walter Isaacson, Microsoft seemed to have the better business for a long time. "But in the end, it didn't create products of ethereal beauty. Steve believed you had to control every brush stroke from beginning to end. Not because he was a control freak, but because he had a passion for perfection." Can Apple continue to live by Jobs's disruptive creed now that the company is as successful as Microsoft once was? According to Robert Cihra it was one thing for Apple to cannibalize its iPod or Mac businesses, but quite another to risk its iPhone juggernaut. "The question investors have is, what's the next iPhone? There's no obvious answer. It's almost impossible to think of anything that will create a $140 billion business out of nothing."

5 of 458 comments (clear)

  1. Different markets... by VendettaMF · · Score: 5, Interesting

    Microsoft sell to people who want to use computers without learning how they work.

    Apple sells to people who want to look richer than they really are.

    In reality, Apple is competing with the makers of fake jewelery.

    --
    kartune85 : Incapable of reason, observation or learning. A kind of dim, drab, flightless parrot.
  2. Re:Create a $140 billion business out of nothing? by peragrin · · Score: 5, Interesting

    right and touchscreen smart phones were widely used before the iPhone? yes you had business phones. they had shitty web browsers, could barely display one email at a time, and were a joke.

    The apple introduced the iPhone, and all those companies what had smartphones before are either gone, or fading away. So yes you are technically correct apple didn't create the smartphone sector. Apple turned a tiny niche, into a massive piece, showing companies how doing something right all the way through can lead to massive profits.

    So when you turn a few thousand units a year into a few billion units it is building it out of nothing.

    --
    i thought once I was found, but it was only a dream.
  3. Re:Create a $140 billion business out of nothing? by ohieaux · · Score: 4, Interesting

    While there's no denying Apple helped build the sector into $140B (or whatever it is), the real innovation was bringing data to users at a reasonable price.

    I had some lame windows smart flip phone prior to the iPhones coming out. But, it wasn't subsidized by my employer. The browser was garbage, and the email was rudimentary. I lived in fear that something would misbehave and I'd get slammed with $100's of dollars in data fees from AT&T. I bought an early iPhone and lost that fear. Ultimately, the closed ecosystem drove me to Android. Now, I struggle to get to 10% of my monthly data cap.

    For me, opening cell companies to reasonably priced data (by jumping in at the right time and locking in with AT&T) is what Apple did to open the market.

    --
    Where all think alike, no one thinks very much.
  4. Without Steve Jobs ... by Taco+Cowboy · · Score: 5, Interesting

    I'm sure they are working up a neurocannula down there in Cupertino...the iJack

    Without Steve Jobs Apple is just like Microsoft

    No matter how you hate Steve Jobs, that guy is the one with the radical views

    The world already got its walkmans for decades but it was Steve Jobs who knew he could do much better than the Sony Walkman (and all the copycats) and iPod was the answer

    There were already smartphones (actually what was available before iPhone should not be categorized as smartphones, they were more like featurephones than smartphones) with the a-z keyboard on the keypad

    It was Steve Jobs who moved the keyboard from the keypad to the screen

    Let's compare Bill Gates with Steve Jobs

    Bill Gates is from a very wealthy family, with a mother who knows people in high places

    Steve Jobs is adopted. His birth dad is from Lebanon, and after knocking up his birth mother, abandoned his birth mother and went back alone to the Middle East

    That is why Steve was put up for adoption because his birth mother couldn't bring up a son on her own

    Steve Job's adopted parents are middle class people. Financially stable, but in no way can be compared to the wealth of Bill Gates' family

    Bill Gates was enrolled into the first class university, and dropped out - he dropped out because he has no fear, after all, he got his wealthy family to fall back on

    Steve Jobs didn't make it to first class university - there wasn't enough $$$ anyway. His 'university' is Reed College in Portland, Oregon

    When Steve Jobs dropped out, he did not have a $$$ filled family to support him, he needed to find the money himself

    When Bill Gates created Microsoft he could afford to rent comfortable office space and hire people --- Bill Gates got so much money that he could even afford to buy a program, called QDOS, from Tim Paterson

    On the other hand, Steve Jobs started Apple with his pal, Wozniak, in a garage

    Bill Gates' successful break was from his mom's link to IBM's hotshot

    Steve Jobs' break is based on his ingenuity and determination

    Steve Jobs was kicked out of Apple once - and without Steve Jobs around, Apple Inc turned into a pool of Apple jam - they actually brought out a dud - the Apple Newton

    Only when the Apple Inc was in rock bottom that they brought Steve Jobs back --- and promptly with Steve's Macintosh Apple rebound

    Microsoft ? With or without Bill Gates Microsoft will still be Microsoft, because Bill Gates, unlike Steve Jobs, has little or no vision

    On the other hand, Apple with Steve Jobs is a jar of Apple jam

    Since the departure of Steve Jobs, Apple Inc hasn't come up with any new stuff that make sense - all it got is iteration of the same-old-shit, iPad and iPhone, that's all

    --
    Muchas Gracias, Señor Edward Snowden !
    1. Re:Without Steve Jobs ... by Plumpaquatsch · · Score: 5, Interesting
      Nice theory - but Jobs didn't actually come up with any of those ideas, but his engineers did. What Jobs did was to reject stuff like Google Glass.

      “People think focus means saying yes to the thing you’ve got to focus on. But that’s not what it means at all. It means saying no to the hundred other good ideas that there are. You have to pick carefully. I’m actually as proud of the things we haven’t done as the things I have done. Innovation is saying ‘no’ to 1,000 things.”

      And whether Apple without Steve Jobs is just like Microsoft remains to be seen - he trained enough people to say no to half-baked products.

      --
      Of course news about a fake are Fake News.