Yes, but not quite. Apple has always been a hardware and software company, though their software is mainly related to their OS. Microsoft was (at the time) almost strictly a software company (no Xbox or Surface Tablets back in those days), and only part of that was the Windows OS. Office was pretty much the only game in town, for PC or Apple. Yeah, Apple was small potatoes as far as market share, but they'd still be shooting themselves in the foot if Apple folded and they lost those customers, since die-hard Mac users are more likely to jump to Linux than the PC market. Apple got some cash and Microsoft got to pretend it was a placation to the anti-trust crowd when in reality it was nothing of the sort, since it was a software company bailing out a hardware maker that also made it's own OS.
Intel and AMD both make the same product. Direct competitors.