Each Apple and Microsoft have diversified enterprise fashions.
Although every of those corporations has a core enterprise.
For Microsoft, it’s the Home windows set of merchandise. Whereas for Apple, it’s the iPhone, round which the corporate has developed a trillion-dollar cellular ecosystem.
Apple and Microsoft, whereas they may have some overlap, they’re basically totally different corporations.
Microsoft is a software-first firm, and whereas, over time, it additionally began to develop its personal line of PCs and tablets, it’s nonetheless primarily a software program firm.
Apple, on the opposite facet, combines {hardware}, software program, and market to reinforce a enterprise ecosystem by means of its App retailer and iPhone.
Microsoft has been diversifying in varied areas, additionally investing massively in new areas like AI, with the partnership with OpenAI.
Apple, on its facet, has consolidated its enterprise mannequin by means of the cellular platform whereas it has been trying to develop into different platforms like AR and blended actuality.
Learn Subsequent: Microsoft Enterprise Mannequin, Who Owns Microsoft?, Microsoft Organizational Construction, Microsoft SWOT Evaluation, Microsoft Mission Assertion, Microsoft Acquisitions, Microsoft Subsidiaries, Invoice Gates Corporations.
Table of Contents
Associated Visible Tales
Who Owns Microsoft
Main shareholders comprise co-founder Invoice Gates, who stepped down from the corporate’s board in 2020, which is why these shares are now not publicly reported. In 2019, Gates nonetheless owned a stake of 103 million shares, which accounted for 1.34% of the corporate’s possession (price over $23 billion in January 2023). Different particular person shareholders comprise Satya Nadella, the corporate’s CEO, Brad Smith (former president), Jean-Philippe Courtois (EVP), and Amy Hood (former CFO).
Microsoft Financials
In 2022, on over $198 billion in income, Microsoft generated over $72.7 billion. The corporate had over $104 billion in liquid property (which may be simply transformed into money).
Microsoft Income
Microsoft Subsidiaries
Microsoft is among the many largest corporations on earth, with a diversified portfolio. Owned by billionaire Invoice Gates, Microsoft acquired different corporations like LinkedIn, GitHub, Skype, and extra over time. Immediately, Microsoft is a tech empire that spans software program, social media, gaming, and extra.
Microsoft Income Per Worker
In 2022, Microsoft generated $928,663 in income per worker post-mass layoffs, vs. $939,668 in 2021.
Microsoft Acquisitions
Microsoft’s first acquisition in 1987, Forethought, was the developer of a presentation program that will later turn out to be PowerPoint. Since then, the corporate has made a mean of six purchases yearly, with fourteen of these exceeding the $1 billion mark. Immediately’s Microsoft enterprise mannequin spans varied segments because of an acquisition technique, which noticed Microsoft concerned in a number of acquisitions.
Microsoft Mission Assertion
Microsoft’s mission is to empower each particular person and each group on the planet to realize extra. With over $110 billion in revenues in 2018, Workplace Merchandise and Home windows are nonetheless the primary merchandise. But the corporate additionally operates in Gaming (Xbox), Search Promoting (Bing), {Hardware}, LinkedIn, Cloud, and extra.
Microsoft Enterprise Mannequin
Microsoft has a diversified enterprise mannequin, spanning from Workplace to gaming (with Xbox), LinkedIn, search (with Bing), and enterprise companies (with GitHub). In 2021, Microsoft remodeled $168 billion in revenues, of which over $52 billion got here from Server merchandise and cloud companies, and $39.8 billion got here from Workplace merchandise and cloud companies. Home windows generated over $23 billion, Gaming generated over $15 billion, LinkedIn over $10 billion, and search promoting (by means of Bing) over $8.5 billion.
Microsoft SWOT Evaluation
Based in 1975 by Invoice Gates and Paul Allen, Microsoft is a revolutionary firm on this planet of non-public computing. The corporate designs and manufactures software program, {hardware}, working programs, apps, and gadgets. Certainly, Home windows and Microsoft Workplace are staples in billions of houses worldwide.
Microsoft Organizational Construction
Microsoft has a product-type divisional organizational construction primarily based on capabilities and engineering teams. As the corporate scaled over time, it additionally grew to become extra hierarchical whereas sustaining its hybrid strategy between capabilities, engineering teams, and administration.
OpenAI Organizational Construction
OpenAI is a synthetic intelligence analysis laboratory that transitioned right into a for-profit group in 2019. The company construction is organized round two entities: OpenAI, Inc., which is a single-member Delaware LLC managed by OpenAI non-profit, And OpenAI LP, which is a capped, for-profit group. The OpenAI LP is ruled by the board of OpenAI, Inc (the muse), which acts as a Common Associate. On the similar time, Restricted Companions comprise staff of the LP, a few of the board members, and different traders like Reid Hoffman’s charitable basis, Khosla Ventures, and Microsoft, the main investor within the LP.
OpenAI Enterprise Mannequin
OpenAI has constructed the foundational layer of the AI business. With giant generative fashions like GPT-3 and DALL-E, OpenAI provides API entry to companies that need to develop functions on prime of its foundational fashions whereas with the ability to plug these fashions into their merchandise and customise these fashions with proprietary knowledge and extra AI options. Then again, OpenAI additionally launched ChatGPT, creating round a freemium mannequin. Microsoft additionally commercializes opener merchandise by means of its business partnership.
OpenAI/Microsoft
OpenAI and Microsoft partnered up from a business standpoint. The historical past of the partnership began in 2016 and consolidated in 2019, with Microsoft investing a billion {dollars} into the partnership. It’s now taking a leap ahead, with Microsoft in talks to place $10 billion into this partnership. Microsoft, by means of OpenAI, is creating its Azure AI Supercomputer whereas enhancing its Azure Enterprise Platform and integrating OpenAI’s fashions into its enterprise and shopper merchandise (GitHub, Workplace, Bing).
Stability AI Enterprise Mannequin
Stability AI is the entity behind Secure Diffusion. Stability makes cash from our AI merchandise and from offering AI consulting companies to companies. Stability AI monetizes Secure Diffusion through DreamStudio’s APIs. Whereas it additionally releases it open-source for anybody to obtain and use. Stability AI additionally makes cash through enterprise companies, the place its core improvement crew provides the prospect to enterprise prospects to service, scale, and customise Secure Diffusion or different giant generative fashions to their wants.
Stability AI Ecosystem
Associated to Apple
Who Owns Apple
As of 2023, main Apple shareholders comprised Warren Buffet’s Berkshire Hathaway with 5.73% of the corporate’s inventory (valued at over $130 billion). Adopted by different particular person shareholders like Tim Cook dinner, CEO of Apple, with about 3.3 million shares, Artur Levinson, chairman of Apple, with over 4.5 million shares, and others.
Apple Enterprise Mannequin
Apple has a enterprise mannequin that’s divided into services and products. Apple generated over $394 billion in revenues in 2022, of which $205.5 got here from iPhone gross sales, $40 billion got here from Mac gross sales, over $41 billion got here from equipment and wearables (AirPods, Apple TV, Apple Watch, Beats merchandise, HomePod, iPod contact, and equipment), $29.3 billion got here from iPad gross sales, and $78.13 billion got here from companies.
Apple vs. Android
Apple Enterprise Progress
iPhone and Companies gross sales represented the primary income drivers in 2022. Inside the service revenues, the quickest rising sub-segment was the promoting enterprise Apple constructed on prime of the App Retailer, adopted by the Mac, Equipment & Wearables, and the iPad.
Apple Earnings
Apple generated nearly 100 billion {dollars} in income in 2022, in comparison with $94.6 billion in 2021 and over $57 billion in 2020.
Apple Distribution
In 2022, most of Apple’s gross sales (62%) got here from oblique channels (comprising third-party mobile networks, wholesalers/retailers, and resellers). These channels are important for gross sales amplification, scale, and subsidies (to allow the iPhone to be bought by many individuals). As compared, the direct channel represented 38% of the overall revenues. Shops are important for buyer expertise, enabling the service enterprise, and branding at scale.
Apple Gross sales By Distribution Channel
In 2022, Apple generated 62% from oblique channels vs. 38% from its direct channel. In 2021, 64% of Apple’s gross sales got here by oblique channels vs. 36% from its direct channels in 2021.
Apple Worth Proposition
Apple is a tech large, and as such, it encompasses a set of worth propositions that make Apple’s model acknowledged, amongst shoppers. The three elementary worth propositions of Apple’s model leverage the “Suppose Totally different” motto; dependable tech gadgets for mass markets; and beginning in 2019, Apple additionally began to emphasise increasingly privateness to distinguish itself from different tech giants.
Apple Mission Assertion
Apple’s mission is “to deliver the very best person expertise to its prospects by means of its modern {hardware}, software program, and companies.” And in a manifesto dated 2019 Tim Cook dinner set the imaginative and prescient specified as “We consider that we’re on the face of the earth to make nice merchandise and that’s not altering.”
How A lot Is Apple Value?
In 2022, Apple is price two and a half trillion {dollars}. Apple generated over $205 billion from iPhone gross sales in 2022, which accounted for over 52% of its web gross sales—adopted by companies revenues at over $78 billion, wearables and equipment at over $41 billion, Mac gross sales at $40 billion, and iPad gross sales at over $29 billion.
Apple Money On Hand
Apple Staff
Apple Income Per Worker
Apple had 164000 full-time staff as of 2022, producing $2,404,439 per worker.
Income Per Worker
Apple Mission Assertion
Apple’s mission is “to deliver the very best person expertise to its prospects by means of its modern {hardware}, software program, and companies.” And in a manifesto dated 2019 Tim Cook dinner set the imaginative and prescient specified as “We consider that we’re on the face of the earth to make nice merchandise and that’s not altering.”
The Economics of The iPhone
It prices Apple $501 to make an iPhone 14 Professional Max, and the corporate sells it at a base worth of $1099. This makes Apple’s base markup on the most recent iPhone mannequin at 119% Apple is the one tech firm in a position to promote its tech merchandise at a such a premium, because of a mix of {hardware}, software program and market.
Tim Cook dinner Wage
Whereas Apple Tim Cook dinner’s wage has been $3 million since 2016, most of Tim Cook dinner’s compensation is performance-based. As an illustration, in 2022, whereas the wage of Tim Cook dinner was $3 million, he had complete compensation of over $99 million, which comprised inventory awards and different incentives and bonuses.
