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Microsoft Exerting Authority As In Days Past

Apple vs Microsoft? The battle rages on. In the year 2010, Apple’s corporate value surpassed Microsoft’s for the first time, according to findings by the Wall Street Journal. Since then, Apple’s market capitalization has  been on the rise while Microsoft’s has been hurrying in the opposite direction. To be more specific, within a year of Apple matching Microsoft’s corporate value, it’s market capitalization rose from $223 billion to $306 billion while Microsoft’s market capitalization fell from $219 billion to $212 billion.

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Beyond this period, even though Microsoft still controls the desktop market (about 90% as compared to Apple’s 3.5-5%) Apple has continually exploded and taken command especially of the tablet and smartphone markets. Apple captured about 15.7% of the world smartphone market in 2010 and has been growing since. Microsoft on the other hand, had just about 4.2% market share that same year and has been growing a lot less as compared to Apple. Apple’s iPads and iPad minis have taken an overwhelming lead in the tablet market and Microsoft has proved to be no competition in this market.  Clearly, Apple has proved to have the most potential of growth between the two.

What Microsoft has seemed to be lacking in potential for growth, it is making up for in game theory by coming up with a best response to Apple’s growing popularity. Only this week, Microsoft announced the launch of a smartwatch – the Microsoft Band. This band is designed to match people’s needs to have a device that keeps a track of their health. The band is wearable 24/7 and it keeps track of the user’s heart rate as well as other important details such as calories consumed and burned, and sleep patterns. And what’s more is that it is compatible with the three major mobile operating systems: iOS, Android and Windows Phone.

What stands out is not so much the technology behind the device, but the timing of it’s production. In recent weeks, there has been a lot of  excitement since the announcement of the iWatch by Apple during its launch of the iphone  6. Many people have been waiting for  its production. And now Microsoft has taken advantage of this hype and produced a similar, if not better smartwatch at the opportune moment. It has beaten Apple to not only produce the Microsoft band right before the critical holiday season, but to also produce it at a consumer friendly price. Moreover, microsoft has made this band available immediately. Microsoft is drawing all the hubs pointing to Apple, a strong authority and using them to its advantage.

“Microsoft is showing consumers and Wall Street it still has tricks up its sleeve by launching its smartwatch now, beating Apple to the market for the critical holiday season.” – USA TODAY MONEY

Cited:

  1. USA TODAY, http://americasmarkets.usatoday.com/2014/10/29/hour-is-here-for-microsoft-watch/

  2. Forbes: http://www.forbes.com/sites/aarontilley/2014/10/30/microsoft-health-band/

  3. Computerworld: http://www.computerworld.com/article/2507485/vertical-it/apple-vs–microsoft-by-the-numbers.html

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