Microsoft Corporation (MSFT), Apple Inc. (AAPL): Windows 8 Is Doing Just Fine

In fact, if it can get a respectable product out the door that looks and feels just like using a Windows based PC, it will have a material market to sell into. What Microsoft Corporation (NASDAQ:MSFT) is creating, then, seems allot like what Apple has to offer.

An Ecosystem

Apple Inc. (NASDAQ:AAPL) has seen that once a customer starts to use an Apple product, like an iPhone, iPad, or iPod, he or she gravitates toward other Apple products. Since Windows hadn’t really had a coherent product collection like Apple, it wasn’t that hard to get Windows customers to make the switch. Microsoft Corporation (NASDAQ:MSFT) is now putting up a fight.

It may take time for its mobile OS and tablet to catch on, but they start to create a comfortable world in which Windows customers can live. That’s not going to unseat Apple Inc. (NASDAQ:AAPL) or slow its growth prospects, but it may help to stave off defections and slowly build and broaden the Windows brand.

Which One?

Interestingly, Apple Inc. (NASDAQ:AAPL) and Microsoft are both seeing solid sales trends. Apple’s growth rates are far more exciting than Microsoft’s, but its top line is more likely to slow from its recent heady pace while Microsoft Corporation (NASDAQ:MSFT)’s top line will probably just keep rolling along at a healthy, though not spectacular, clip. That’s part of the reason why Apple shares are off from recent highs while Microsoft shares are trending higher.

Apple’s big problem is that it either needs to find a big source of new customers or create the next revolutionary product. If it can’t do at least one of the two, sales growth will be harder to achieve. If Microsoft’s sales muddle slowly higher, however, investors are likely to be pleased. The shares have advanced of late, but still remain within a decade long trading range. Look for a break above $40.

After coming down from recent highs, Apple Inc. (NASDAQ:AAPL) shares actually yield slightly more than Microsoft, though both sport yields in the mid-2% range.

Apple Inc. (NASDAQ:AAPL) is most appropriate for growth minded investors who think the company still has some “magic” left to share with the world. Microsoft, meanwhile, is a decent choice for those seeking a well-diversified, but slow growing, tech giant.

Reuben Brewer has no position in any stocks mentioned. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple and Microsoft.

The article Windows 8 Is Doing Just Fine originally appeared on Fool.com.

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