Microsoft Trust and Apple Will Not Overtake Any Time Soon

By Admin Kantor Lagu January 13, 2019 Post a Comment

Microsoft is now the most valuable company in the world? Ah, late! It's stale news a month ago. Indeed correct. But my friends need to know that I need time to read many reviews and articles from market observers and economists to ensure that this phenomenon would endure in the long period of time, not just in a matter of days (considering how his vulnerable stock market in determining the value of a particular company). Daniel Newman from Market watch has a very interesting opinion that Apple won't be in the near future to take over the title as "the most valuable company in the world"!

Mid-2018 recently, Apple appears to successfully find their title with as a company worth USD 1 trillion – Indeed they are not the first company to do it, but this year only Apple that are in the list. Shares of Apple records the highest value with USD 207.05. Uniquely, this status was achieved when profit sales of Apple's iPhone (which is the main source of its income), stagnant in numbers USD 41.3 million.

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The market participants are optimistic. The September future Apple will announce a new iPhone, and as always, this smart phone will certainly bring its own trend, luring consumers to spend their money, and of course Apple's profit will be doubled! But it turns out that all predictions wrong.

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The announcement of three new iPhone: iPhone, iPhone XS Max, and iPhone XR doesn't get traction expected Apple. Sales remained good, but not spectacular. After two months that feels flat, ultimately the end of November and then, as if witnessing something that is not real: the status of the Apple as the most valuable company in the world that has already gripped him since the year 2012, displaced by a company that presumably had already ' not cool ' again: Microsoft.

Indeed this is more due to the bad performance of the companies in the top five. Apple, Amazon, Google, and Facebook has decreased the value of the shares, probably because of the various problems that beset them. Microsoft is not great. They are only stable. The increase noted Microsoft is not great, but their performance is very stable, enough to place them as the most valuable company in the world!

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If this event happened a few years ago, maybe people will assume that this is only a temporary phenomenon. Microsoft will soon return to the ' habitat ' in the top five, while Apple will again hold a leadership position as the highest valued company in the world. But a lot of things suggests that it looks like this will not happen.

The first argument for this is: Apple in recent years have had problems in innovation. Since Apple Watch was introduced in the year 2015, Apple has not released something that shocked the world or become a forerunner of the ' dairy ' next. Okay, they release a good product, they created a smart trend – But Apple products lately, just ' completion ' of previous products. No that is a ' breakthrough ' as the first time the iPhone was introduced, or at least as Apple makes the Touch ID as an innovative bio-metric security systems, not only to open up the screen, but also to guarantee the security transactions and ensure privacy when you sign in to a particular application.

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Second, Apple had a problem peculiar to legal disputes. If the first Apple as if posting a bully demanding a variety of Samsung with patents that stated Samsung used without permission, this year's Apple get the complicated legal issues with Qualcomm. The problem between Apple and Qualcomm is not only hinder iPhone sales in some regions (Qualcomm successfully banned the iPhone sold in certain regions due to patent infringement), but also potentially inhibit their business relationships. Qualcomm in addition known as the maker of chips for smartphones, is also a company that is able to make chips for modems. The dispute with Qualcomm making Apple slower getting an even 5 g technology already embedded in some of the Android devices later this year.

Third, the issue of the sale. Here's what trigger the declining confidence of shareholders. Despite record high profits, but clearly the iPhone sales, Apple's main commodity, the decline is real. Apple did the limitation of production in order not to suffer losses due to the large number of iPhone that is not sold on the outer. For a commercial company, Apple has very high profit, but definitely not like the iPhone era 7 best-selling sold outperformed many other manufacturers two years ago.

Lastly, Apple production relies heavily on China. It is also the best-selling iPhone sold in the market of China. A trade war between Donald Trump and the Chinese Government are not helping Apple to defend her title as the most valuable company in the world.

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On the other hand, Microsoft as a challenger, not just having no problems such as Apple. Microsoft seemed to find new energy with a focus toward cloud services and since maintained by Satya Nadella’s CEO. Sales growth of Microsoft's cloud are very rapidly and even though it did not grow rapidly se years later, cloud service system which made users subscribe, of course automatically guarantee profit Microsoft for several years to future. Moreover, Microsoft's focus is Enterprise, ' customers ' of this one prefers stability and infrastructure has not changed much. If successfully captured the ' heart ' of the Enterprise, of course, Microsoft already secure income some years to come. This is the excess of the market Enterprise than general consumer moods keeps changing. Not necessarily the consumer who bought an iPhone this year will buy the iPhone again in front of him. But companies that subscribe to the service cloud this year, if satisfied of course will pay for such services in coming years. This is the fundamental difference the business style of Apple and Microsoft.

From the analogy above, unless Apple do a drastic step that makes the community in droves buying its products, it seems like Microsoft with a steady stride and definitely would retain this position. Market analysts and economists are even forecasting a rate of growth at the moment, then in the year 2019, Microsoft will also be recorded as a company worth over USD 1 trillion!