APPLE INC & MICROSOFT

Comparing and Contrasting Apple Inc & Microsoft



Apple and Microsoft

Over view of the Apple Inc

Apple Computers is considered to be the creator of the personal computer and much more. One relegated to a niche, hobbyist computer manufacturer, Apple Computers has matured into a media powerhouse with its long tentacles in every aspect of the business. Apple Computers plays a major role in the consumption (iPod and Mac) and distribution (iTunes Store) of music, once thought to be the exclusive domain of giant record tables. Since January 2010, the company operates through its 284 retail stores in ten countries, and through an online store selling both hardware and software. Among the products of hardware known to the company has teams Macintosh, the iPod, the iPhone and the iPad.

Among the software Apple deal with operating system Mac OS X, the operating system IOS, the media browser iTunes, the suite iLife (multimedia and creativity software), the suite iWork (productivity software), Final Cut Studio (a suite of professional video editing), Logic Studio (audio editing software on audio tracks) Xsan (software for exchanging data between servers), Aperture (RAW image editing software), and the web browser Safari (zt.blogchina.com).

Over view of the Microsoft Corporation

The competitor which has been chosen is Microsoft Corporation. Microsoft develops, manufactures, licenses and produces software and electronics, these products used in operating Microsoft Windows system and the suite Microsoft Office, which have an important position among personal computers. With a market share approaching 90% for Office 2003 and Windows in 2006, following the strategy of Bill Gates to “have a workstation that runs our software on every desktop and in every home”.

Microsoft strengthened its position in other markets such as operating systems and office suites, with resources such as cable television network MSNBC, the premier Internet MSN and multimedia encyclopaedia Microsoft Encarta, product and service cancelled by the company in early 2009 due to competition from the free Wikipedia. The company also sells hardware like mouse Microsoft and home entertainment products such as Xbox, Xbox 360, Zune and MSN TV Microsoft has given support to its users through Usenet newsgroups and on the Internet also rewarded with the status of Microsoft MVP (Most Valuable Professional) to those volunteers who prove to be useful in assisting customers (www.microsoft.com).

Reason to choose these companies

The reason to selecting these companies is due to the highest generating revenue in their industry and because of the following reasons which made them successful across the world:

Apple Inc

Microsoft

Ability to quickly adopt new technology

User friendly products

Effective advertising and branding

Development of new products

Effective cost controls

Large instalment base

Strength in export markets

Intellectual property protection

Offering a “one-stop shop”

Having a diverse range of clients

Financial Statements Comparison

Ratios Analysis

In order to see financial position health of Apple Inc we have calculate Ratios which is considers a good way to evaluate the performance of the business and identify problems. The following ratios have been compared the ratio of Microsoft corporation.

Profitability Ratios

Apple Inc

Microsoft

Ratios

Profitability Ratios

2011

2010

ROA % (Net)

27.14

21.78

ROA % ...