Is Microsoft Copying Apple?

Conventional wisdom held it as a given that Microsoft's hold in the realm of technology and especially software was almost unassailable. In the last decade, it has become very clear that this assumption was not neither well informed nor justifiable. In the last decade, both Google and Apple have gained substantial recognition through innovation and emerged not only as Microsoft's primary competitors but also the leaders in the industry. Part of the evidence for this is seen in reports such as this in the Irish Times, which showed that Google surpassed Microsoft in the equity markets. Certainly, stock market valuations alone do not mean  that one corporation is more innovative than another but valuation is a sensible barometer by stock buyers about the expected revenues of one corporation.

Notably, the leading corporation has been Apple, whose valuation has been rising and is the recognized leader in the technology industry. Microsoft's CEO, announced in this article in the Irish times that it is changing strategy and will commence reorient itself to go into production of gadgets in addition to software. As argued, this will involve the integration of software and gadgets in order to compatibility in products with high margins and huge demand. Any person who follows the industry understands that that path is one that Apple has taken with spectacular results. This state of affairs is empirical demonstration of the fact that competition is  a major driver of innovation.

To my mind, this entry of a large firm with a great background in innovation into the integrated gadget and software business forebodes further innovation and efficiency. That means that the consumer surplus will only expand. Competition makes capitalism and capitalism thrives on competition.