The plan was simple but agreed upon but all parties present at the meeting. Steve Jobs represented the interests of Apple (AAPL) and Bill Gates, meticulously taking notes on a legal pad, was prepared to speak on behalf of Microsoft (MSFT).
FADE IN, INT. Somewhere in Silicon Valley
Jobs: Okay, can we please get this over with so I can go home to my wi-fi
Gates: I agree, I personally need time to update my nightly journal in Microsoft Word
Jobs: (jokingly coughs through each word)…Pages..is..better
Gates: Why you son of a…?
Bezos: Now, now, everyone settle down. Alright, so let’s settle this once and for all. Microsoft (MSFT) you’ll be the computer used by all major banking institutions, gamer nerds, and edgy hipsters in Seattle, does that sound okay?
Gates: (sighs) I guess
Bezos: And Steve…Steve…STEVE
Jobs: (wakes up from comical snoring) I’m awake, relax!
Bezos: Apple (AAPL) will always be more expensive, every Ivy League student will receive a MacBook with their admission letter, iTunes will be the preferred online music platform, and everyone will want an iPhone, despite the fact that other smartphones have had the features, that each iPhone announces as revolutionary, several years earlier
Jobs: Okay, sounds good.
(Jobs and Gates shake hands.)
Ignoring the nuts and bytes of how I was able to transcribe, and be present, at the completely real meeting, Microsoft (MSFT) and Apple (AAPL) entered the tech industry at a time when the technology involved in manufacturing computers was still in its infancy. It’s been nearly forty-five years since both companies were founded, and each brand has secured itself in the hearts and minds of tech consumers for different reasons.
Traditionally, computers manufactured by Microsoft (MSFT) tend to be significantly cheaper than Apple (AAPL) products, and have all of the same features, but Apple (AAPL), over the years, has perfected their aesthetic, and no computer will ever compete with the design aesthetic of a MacBook or iPhone. Each product is so sleek, with defined curves and perfect edges, cut by the Gods, but with great aesthetic comes great financial responsibility. Apple’s (AAPL) laptops are typically far more costly than purchasing a Microsoft (MSFT) computer, and for this, and many other reasons, Microsoft (MSFT) products are used in most businesses around the world.
Apple (AAPL) has, in its trophy case, the award for the largest company, by market capitalization, for the last seven years, but on Tuesday, Microsoft (MSFT) achieved the impossible. Even if for a moment, the company surpassed Apple on a stock market value basis early this week. Eventually, the two companies evened out and Apple (AAPL) took over, but this event caused quite a stir for investors and consumers in the space. Some analysts believe Microsoft (MSFT) may give the fruit-themed tech monster a run for its money in the coming months.
“I used to think of Apple when someone mentioned innovation but the problem is they’ve forgotten how to innovate. Their MacBooks still don’t have a touchscreen option, and that’s probably to prevent cannibalization of iPad sales but, to be honest, who does any real work on an iPad? I think it’s a huge miss”
–Mark Tepper, President, and Chief Executive Officer, Strategic Wealth Partners
Suffice to say Apple (AAPL) hasn’t had the easiest time as of recent, with a steep sell-off earlier in the month, and the company’s recent quarterly earnings report indicating lower-than-expected sales for the iPhone family, specifically the iPhone XR. According to several reports, Foxconn, a China-based manufacturer of iPhones, is just using 45 production lines to manufacture the iPhone XR, despite originally planning on using 60. Additionally this week, Apple (AAPL) will speak in front of the US Supreme Court to plead their case against an antitrust lawsuit regarding the company’s App Store terms and conditions.
In the corner on the other side of the ring, Microsoft (MSFT) has shown tremendous promise in the market over the past few months. At the tail end of October, Microsoft (MSFT) announced that it had finalized plans to snag GitHub, the SF-based collaborative platform built for developers around the world to share code, discover innovative approaches to solving issues and, ultimately, develop better software for consumers, for $7.5 billion in stock options. The acquisition was meant to show the industry that, after years of evading and shutting down open-source software and programs, Microsoft (MSFT) decided it was high time to join the party.
Additionally, Microsoft (MSFT) continues to enjoy success in a highly profitable offshoot from the tech industry and that, my friends, is the world of video games. Madden, Fortnite, Call of Duty, think of any video game you’ve seen on a bus bench ad and I’ll guarantee you can play the game on an Xbox, Microsoft’s (MSFT) gaming console.
“I don’t think everyone realizes how real this industry is. There are more people watching ‘League of Legends’ than the NBA Finals and the Olympics. To put that into perspective, the ‘League of Legends’ will sell out the Barclays center for four-straight nights. The Nets can’t do it for one night.”
–Mark Tepper, President, and Chief Executive Officer, Strategic Wealth Partners
Tepper is speaking on the craze surrounding esports, a global phenomenon in which competitive gamers play against each other with screens set up in arenas and coliseums, and spectators pay hard-earned money to watch these kids play video games.
Only time will tell if Microsoft (MSFT) has the clout to overtake Apple (AAPL) as the leader of the industry. Frank Cappelleri, chief market technician at Instinct, believes that Apple (AAPL) may bounce back soon, but I suggest Tim Cook start advocating for an iGame console.
