# The turning point in Apple's historic rivalry with Microsoft The story of Microsoft's critical victory against Apple in the 1990s - **Source:** [Cult of Mac](https://brifing.si/source/7e2968d9-bc24-4286-8f9e-146807f06336) - **Published:** 2026-08-14 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/52b284f2-21fd-4af1-9da9-4c544ff5a890 ## The beginning of the rivalry In the early 1980s, Apple and Microsoft emerged as pioneers of the personal computer revolution. While Apple's Macintosh stood out with its graphical interface, Microsoft began dominating the market with MS-DOS and later Windows. The tension between the two companies escalated in 1988 when Apple sued Microsoft, claiming Windows looked too similar to Mac OS. ## Legal battles Apple's copyright lawsuit against Microsoft continued until 1994. The court ultimately ruled that Windows used licensed visual elements and didn't support Apple's claims. This decision strengthened Microsoft's position in the operating system market while pushing Apple into a difficult period. ## Market share struggle By the mid-1990s, Windows had captured about 90% of the operating system market, while Mac OS held just 5%. Microsoft's aggressive licensing strategy and strong relationships with hardware manufacturers severely eroded Apple's market share. During this time, Apple began experiencing financial difficulties. ## Software strategy difference Apple's closed-system approach, developing software that only worked on its own hardware, limited its market share. Microsoft grew rapidly with its open platform strategy, licensing to all PC manufacturers. This strategic difference became one of the most important factors determining the two companies' fates. ## Apple's crisis period In 1996, Apple reported losses exceeding $1 billion and its stock value dropped by 70%. The company had to withdraw from various product lines. During this period, Apple's competitive strength against Microsoft seriously declined, and even the company's bankruptcy was discussed. ## Microsoft's investment In 1997, Microsoft invested $150 million to keep Apple afloat. The deal also ensured Microsoft would continue offering Office software for Mac. Ironically, it was the rival company that helped Apple survive. ## Steve Jobs' return In 1997, co-founder Steve Jobs' return to Apple marked a turning point. Jobs simplified product lines and began revitalizing the company with innovative products like the iMac. These moves helped Apple regain competitive strength against Microsoft. ## Shift in competitive balance With the success of the iPod in the early 2000s and later the introduction of the iPhone, Apple began regaining technological leadership over Microsoft. The mobile revolution turned Apple's closed-system approach into an advantage this time, shifting the competitive balance. ## Historical perspective While Microsoft's 1990s victory provided temporary dominance in the operating system market, both companies maintained leadership in different areas long-term. Microsoft remained strong in enterprise software while Apple excelled in consumer electronics. This rivalry played a critical role in shaping the technology industry. ## Marketing strategies Microsoft's 'a computer on every desktop' vision reached broad audiences, while Apple's 'think different' approach targeted creative professionals. These different marketing philosophies appealed to different customer segments, contributing to the diversification of the technology market. ## Software ecosystems Microsoft's investments in developer tools created a vast software library for Windows. Apple later gained similar advantage in the mobile ecosystem with the App Store. Both companies demonstrated visionary approaches by recognizing the importance of software ecosystems early. ## The rivalry's legacy The Apple-Microsoft rivalry became a driving force for innovation in the technology industry. Without this competition, many technological advancements we use today might not have happened. The two companies' different approaches provided consumers with more choices and accelerated technological progress. ## Sources covering this story - https://www.cultofmac.com/apple-history/apple-copyright-lawsuit-aginst-microsoft — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._