Sep 13, 2019 (IAM Newswire via COMTEX) -- An update meant to fix Windows Desktop Search has failed to resolve the problem for all of the affected users. Not so long ago, in August, Microsoft released an update to its Surface devices aimed at improving Wi-Fi and Bluetooth performance. Instead, the update prevented those devices from connecting to 5 GHz networks. But surprisingly, Microsoft is doing great despite these quite embarrassing bugs that are annoying its users a great deal.
Users have been cursing Microsoft for its inability to release a bug-free product. And they have been doing it loudly across Twitter /zigman2/quotes/203180645/composite TWTR +1.25% and other platforms for the whole world to hear. Yet, while Apple /zigman2/quotes/202934861/composite AAPL +1.19% has an innovation problem, Microsoft is still growing at quite a momentum. Share-wise, Microsoft is still on top with the current market capitalization of around $1.4 trillion. On the other hand, Apple just reclaimed its trillion-dollar company status in 2019 on Wednesday after the unveiling of its iPhones. But it is just a bit above the $1 trillion benchmark, $1.01 trillion to be precise. Apple shares have increased 40% this year. But besides rebranding with changes in pricing, there was no actual change in the user experience Apple is set to provide. It remains to be seen whether this shift in strategy is sufficient to make a positive impact on Apple's financials.
Unlike Apple, Microsoft does seem well-positioned and its revenue sources are growing. Microsoft Azzure has seen 60% growth in each of the past four quarters. Its Dynamics 465 CRM Business is also growing over 40%. There is not the slightest doubt that Microsoft is at the centre of the AI revolution thanks to these two which seem to be right tools to power up its future and automation.
On the other hand, Apple now has semi-outdated yet overpriced products and therefore, its future sales largely depend on brand-affinity.
Microsoft has already made up its services business while Apple is still on the path of transformation. Moreover, Apple is still testing the waters with its Credit Card and TV+. And it has some strong competitors such as Netflix /zigman2/quotes/202353025/composite NFLX +1.87% , Spotify /zigman2/quotes/207488629/composite SPOT -0.84% and let's not forget, Amazon /zigman2/quotes/210331248/composite AMZN -0.86% and soon Disney /zigman2/quotes/203410047/composite DIS -1.69% . And they are all far ahead when it comes to growth and their product portfolio.
Spotify just acquired a music production market place for artists, producers and musicians. It's part of its efforts to build out services for artists so the company can diversify away from a business model that is based on paying music streaming rights to labels. Since its launch, the company paid $14.3 billion to obtain these rights. The deal is a signal that the company is going to continue investing in more behind-the-scenes services for artists and others in the music ecosystem. Diversifying will also take some pressure of the streaming business, but also hopefully decrease the loss the company is still operating at due to the weaknesses of its core business model.
Disney is also diving deeper into the subscription box game as it just launched the Disney Backstage Collection. The company's package of delights is delivered every month and includes a variety of items for those adults who aren’t afraid to show their love for all things Disney, allowing the company to honor its long and iconic history. And Disney sure has abundant material to create the sensation of surprise and magic to its never-ending customer base.
Yet, it was Apple TV+'s low subscription price that caught the attention of investors. Netflix and Disney's shares dropped upon this announcement. Netflix down over 2% around $288, while Disney lost more than 2% to $136. But Apple's debut is bound to have far less cards up its sleeve during its debut than Netflix's more than admirable portfolio. And luckily for Netflix, its shares were up 0.7% to $290.10 Wednesday morning, in line with gains in the NASDAQ Composite Index. It'll take more than the news of the show staring Aquaman and GOT's star Jason Momoa to disrupt its fortified position.
Apple is playing it safe, something Steve Jobs never did. Tim Cook is adjusting prices but simply selling products he knows Apple can sell. On the other side, Microsoft is still a dynamic risk taker with Satya Nadella challenging the status quo the moment he boarded the boat by switching from software licencing to the cloud business.
Apple will surely need a revolutionary invention to keep its position but Microsoft needs far less to stay on top. First and foremost, any fit for the top company needs to have an exemplary customer service. But Microsoft really needs to improve fast to break the trend of those embarrassing bugs and show its customers more respect. Maybe we'll get an answer on its special event scheduled for October 2nd. Details are slim, but we do know that the fall event is going to be not only about devices and services, but also experiences, so it does sound promising. Amazon has also announced a hardware event on September 25th, and knowing Amazon and its track record, there will be plenty of surprises and novelties, as opposed to a simple and refreshed version of previous products that Apple has treated us with.
The post Microsoft Is All About Taking Risks While Apple is Playing It Safe appeared first on .