Melissa Conlon

The loyalty amongst Microsoft and Apple customers runs deep and so does the competition. The close competition between the two leading, innovative tech companies goes neck-to-neck as they’ve both reached a market cap of 1.5 trillion in 2020. Microsoft took Apple’s year-long position at number one for the world’s most valuable company in late October, Reuters recently shared. This happened after a drop in Apple’s stock and at the same time, an increase in Microsoft’s. In the fall, Apple reported low sales earnings for quarter 3, and predicted a $6 billion loss in revenue due to supply chain constraints.

Both Apple and Microsoft came from similar backgrounds. It was the 1970s when two young, aspiring entrepreneurs began what would become Apple and Microsoft after attending university didn’t work out. They didn’t know each other, and they weren’t working together. But Steve Jobs and Bill Gates were almost simultaneously starting companies that would eventually be at the forefront of technology and innovation, creating the tech-savvy world we live in today. 

And today, there are still a lot of similar characteristics between Microsoft and Apple. They offer immersive in-store shopping in exclusive store locations and from authorized dealers (ex. cell phone providers). They both use promotions, sales and exclusive offers for their loyal consumers. They also both have vast target audiences, but they both focus on students and young professionals in urban and rural areas.

Apple aims to create personal, simple gadgets (with a recent emphasis on health and exercise) with seamless compatibility versus Microsoft, which primarily focuses on creating and selling software, products and even gaming consoles like XBox. The gaming industry is a great advantage that Microsoft has on Apple. One (rather large) recommendation I would have for Apple is tapping into the gaming industry and potentially creating gadgets that can be used by gamers. PR and news around a company has an influence on stock price, this could be another thing for Apple to keep in mind. A marketing campaign that gives back to a cause could be another opportunity.

Since Satya Nadella became CEO of Microsoft in 2014, Microsoft’s messaging, branding and communication have evolved. They have found the ability to evoke emotion in their advertising and connect with their audience in an authentic way and strengthen their brand loyalty. The introduction of Microsoft Teams (a fantastic multi-use platform that’s great for communication efforts in a workplace) before the pandemic and Microsoft’s increased advertising around Teams throughout the pandemic has had profound effects on it’s usage numbers, totaling to 250 million monthly users in 2021. Teams was a great step for Microsoft, as it combined all their previous software and platforms (Skype, Microsoft Classroom) into one place. Apple falls short in this department and does not focus on platforms like Teams or Google Drive.

There is beauty in the simplicity of Apple’s branding – and it’s something that they thrive on. They understand that people seek the simplicity of Apple’s hardware and software. They tend to focus more on the visual elements in their branding versus Microsoft, which focuses on advertising the effectiveness of their products and how it will be beneficial to the consumer’s life. 

I would absolutely love to see more tear-jerking commercials from Apple to humanize their brand more. It almost feels that they’ve steered away from that. To this day, I can still remember the Apple Christmas TV commercials of the young boy who always sits on his phone while his family enjoys the holidays and looks at him solemnly, only to find out the entire time he was creating a video of his family’s festivities to share on Christmas mornings. I no longer feel as loyal to Apple without that human element to it. 

There will always be an underdog, no matter if both companies do everything right or even the exact same way. This emphasizes the importance of branding and establishing brand loyalty. Apple and Microsoft each have their own unique marketing strategies that truly resonate with their target audiences. I think I am more inclined to side with Apple and the products they offer. The only smartphone I’ve ever had is an iPhone and the compatibility of all my Apple products is incredible. However, more recently I’ve been using Microsoft Teams and more of their services and products that I’m thoroughly enjoying, so I’m becoming more open to using what they have to offer. I love the seamless communication and collaboration that can be done through Microsoft Teams and Outlook.

Sources:

Adamska, M. (2019, May 25). The positioning of the four most valuable brands in the world – 2019 update | BrandStruck: Brand Strategy / Positioning Case Studies. BrandStruck. Retrieved November 26, 2021, from https://brandstruck.co/blog-post/positioning-three-valuable-brands-world/

Klebnikov, S. (2021, November 1). Microsoft Is Now The World’s Most Valuable Company After Apple Falls On Earnings. Forbes. Retrieved November 26, 2021, from https://www.forbes.com/sites/sergeiklebnikov/2021/10/29/microsoft-is-now-the-worlds-most-valuable-company-after-apple-falls-on-earnings/?sh=3669653e1d84

Patnaik, S. (2021, October 30). Move over Apple, Microsoft now the world’s most valuable company. Reuters. Retrieved November 26, 2021, from https://www.reuters.com/technology/apple-set-hand-crown-worlds-most-valuable-company-microsoft-2021-10-29/

Vyshnavi, P. V. (2021, February 12). Apple Vs. Microsoft: Analysis Of Their Marketing Strategy. StartupTalky. Retrieved November 27, 2021, from https://startuptalky.com/apple-vs-microsoft-marketing-strategy/