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What Microsoft results may tell us about Apple's business

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Microsoft’s results confirm that the company continues to slowly and steadily pivot to build its business around high-value enterprise services, but is a brother of the more star-studded PC industry. Apple has a unique role in the proliferation of platforms.

What did we learn when we reached the earnings week of both companies?

What’s happening on Mac vs. PC?

Here you can find out more about what’s happening at Microsoft. PC sales and license revenues continue to decline prior to the COVID-19 pandemic, while take-out appears to be an increase in service revenues (especially cloud and SaaS).

When it comes to selling PCs, Microsoft has accused the weak consequences of COVID-related production suspensions in China. It states that it has lowered the overall PC market and reduced Windows sales. (In the related section, it’s interesting to note the big difference between IDC and Gartner’s current forecasts for PC sales.)

What Microsoft doesn’t say is that PC sales are also being affected by growing interest in what Apple offers. The introduction of Macs running Apple Silicon has undoubtedly created a huge spike in the company’s fate, with consumers and business customers investing in Apple’s new notebooks rather than PCs.

The inconvenient truth is that the strength of the iPhone, partly due to the traditional resistance to deploying the Mac in the enterprise, has evaporated over the years. Yes, there are still enthusiastic PC users who claim that the Mac is not a computer, but when it comes to getting the job done without costly technical support and accessing cloud-based services from Microsoft and others, The Mac clearly acts as a peer platform today.

“As demand grows and expectations for the younger generation join the workforce, Apple devices will become number one. [enterprise] It will be an endpoint by 2030, “said Linh Lam of Jamf CIO recently.

The PC market is so competitive for Microsoft’s Windows partners that increasing Mac market share poses additional challenges. Margins are slim as manufacturers are trying to compete for price. Apple’s newly introduced M2 MacBook Air poses a real challenge to PC makers given its computational performance per watt and sticker price of around $ 1,200. I’m urging Apple to upgrade its entire fleet to M2 over the next 12 months, getting ready for the Mac’s Next Big Thing, and a few more notches of 3nm chips to take over Apple’s current power / performance. I expect it.

Apple supplier TSMC knows that it plans to start manufacturing 3nm chips (probably for Apple) next year. This in itself represents a steady roadmap for future Mac development.

What’s happening in the clouds?

Cloud services are another big factor in Microsoft’s business. There’s also data from Google, confirming a 35.6% increase in Google Cloud revenue this week. This is in contrast to Microsoft’s own cloud services (including Azure), which grew 20% this quarter compared to 26% in the previous quarter.

Given the increasing adoption of cloud services, this suggests that competition among vendors in the enterprise cloud space is intensifying. Given how much market share large companies occupy, this can cause ongoing problems for small vendors.

[Also read: Everything-as-a-service, Apple, and the future of business]

Apple also has a cloud service presence, but from a non-corporate perspective. Already, these range from consumer-friendly products like Apple Music to primarily business-focused products like Apple Business Essentials.

Apple released its latest financial results on Thursday, July 28, claiming that much of the industry considers it a product-driven company that is forever exposed to fluctuations in hardware sales, but the success and platform of the transition to services. As a core strength, some people point out the robust nature of.

Citing Apple’s industry-leading retention rate and expanding ecosystem of hardware and services, Morgan Stanley hasn’t been investigated yet as Apple has recently surged its own services1 Proposed a trillion dollar profit.

What’s happening with digital transformation?

The App Store also provides Apple with a strong position to generate revenue from the company’s ongoing digital transformation. According to a recent report based on a survey of C-suite executives, Gartner is moving to enterprise technology as it understands the need for business users to adapt to digital changes to improve efficiency and scalability. He says he does not expect to slow down his spending.

“We will need to implement digital in a way that makes workers, assets and working capital more productive,” Gartner’s Vice President of Research, Landeep Latindran, said in a statement.

Gain clearer insights into how future platform sales could grow when Apple removes its data. Metaverse is waiting for Apple’s life kiss in 2023. Apple executives want history to repeat, like the iPod, iPad, and iPhone. Metalless Yes.

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