Also, A similar discussion could have been said about IBM 10, or 20 years ago. They made printers, keyboards, typewriters, personal computers, mainframes, etc. Now look at that them - A service oriented company. People I'm sure said their star was falling and they couldn't compete in the new world order.
IBM and Apple have an interesting history. First, Steve Jobs sought to topple their dominance in personal computers. One of my favorite pictures:
Eventually, they partnered in the
AIM alliance along with Motorola to promote PowerPC on the desktop. When that failed, IBM eventually divested most of their hardware divisions, slowly transforming into the services company that we have today. They are also one of the largest corporate buyers of Macs, perhaps
the biggest, and have often promoted the
productivity and support cost benefits that they are finding with their internal Mac users.
Companies must change or die, IBM and Microsoft are no longer the dominant forces they once were. From my perspective, Microsoft is nothing more than an over-glorified utility company. I suppose their next big market will be municipal water supply embedded systems.
Heck, Corning started off in the 1850s as a provider of glass optics, such as with headlamps, glass bowls, and ceramics. They kept up with changing technologies, and provided the glass for television picture tubes, the glass for the primary mirror in the Hubble Space Telescope, and eventually fiber-optics when the internet became a thing. Today, they are still in optics, ceramics, and glass, and are best known for Gorilla Glass, featured in the iPhone. Apple has invested nearly half a billion dollars into Corning. That's a successful company transformation over nearly two centuries.
Apple is changing too. However, I'd argue that Apple has handled their transformation far better than their rivals. Apple has stayed profitable in the mature segments. For example, growing market share each year with the Mac and hitting all-time revenue records, reinvigorating the line with Apple Silicon, while introducing compelling products into new markets. The Mac business, in isolation, would be a Fortune 100 company by itself.
Microsoft still has Windows, IBM still has mainframes, but only Apple has managed to grow traditional businesses along with introducing next generation products and services, leveraging their historical vertical integration strategy. Juggling that many plates while adding more isn't easy to do.