Linked by Thom Holwerda on Mon 26th Mar 2007 22:11 UTC, submitted by anonymous
Microsoft "The word 'intense' was invented for Ballmer, who met with us in a green room that had a paper sign with his name taped to the door. While he was at first warm and engaging, a question about security features shifted his mood. His eyes, soft when he smiles, grew dark. The usually boisterous Ballmer became unexpectedly quiet and soon exited the room without saying goodbye. Still, he had a lot to say to SmartMoney senior writer Dyan Machan before he did."
Thread beginning with comment 224975
To view parent comment, click here.
To read all comments associated with this story, please click here.
RE[7]: What a dweeb!
by Umbra on Tue 27th Mar 2007 12:17 UTC in reply to "RE[5]: What a dweeb!"
Umbra
Member since:
2006-03-06

I'm not sure this is the best way to see that.

Well, do you have at better view to present?

By 2012 Apple will be bigger than Microsoft in revenue, but far behind in traditionally and (how stupidly) measured "market shares". One can see how utterly foolish it would have been for Apple to go the Microsoft route, licensing Mac OS X to trillion PC producers and Paul, Peter & Joe-garage. Revenue form this model would have been like a drop in the ocean compared with todays Apple growth potential and business model (it's the Mac that is the product, not Mac OS X)


For example, do you know which is second most-used OS? Pirated Windows. And that counts like 20-30% market share (in some regions, even 60-70%) that is pirated Windows has x10 market share than Apple itself has now. If Microsoft manages to recover a tiny fraction of these lost revenues, it will get far more money than Apple do with OS X.

Well, pirate-market-share does not do much good for Microsoft as a company. However Mac OS X is not a Product! This is the most fundamental difference between these two companies. Microsoft Windows is a Product. Mac OS X is not. It is The Macintosh that is the Apple Product. And here it is Apple that controls everything. Every details, every look, every marketing initiative. If Apple think the Mac should have a face lift in appearance & look, Apple will do just that. The rival, Microsoft, does not have this control. Today the personal computer is moving into peoples expensive fully decorated living rooms, so it better look good! No more PSC's hidden away in cellars and behind closed doors.

Todays security- and OS-maintainance problems are just baby food compared with security problems of the future. Microsoft does not compete here, because they are not in control of the products which they are set to control = the consumers personal computer. They just deliver a component, the PC OS.

Microsoft has now exploited it's market to a 95% extent on todays market size. But Apple ? Apple is just warming up! Which company has a greater growth potential ? You can guess!

The problem for "Microsoft of the future" is that Microsoft´s business model has painted the company into a corner. Microsoft can't go into hardware. They can't go the Apple route. At least not without a declaration of war from zillion so called "pc-partners" and 100% of the market legislation body. First Microsoft would have to loose some hefty weight, i.e. market shares, before that could happen.



Your are absolutely right about this market share measuring method being plain stupid. It really only measure how many Microsoft-Business-Model-Copies of Microsoft main product are being sold.



Moreover, there wasn't almost any iPod HALO effect over OS X and Intel transition didn't help that much: Apple still holds a little fraction of the market and it won't be easy to get more now that Vista is out.

This is not true.

Reply Parent Score: 1

RE[8]: What a dweeb!
by TBPrince on Tue 27th Mar 2007 16:47 in reply to "RE[7]: What a dweeb!"
TBPrince Member since:
2005-07-06

By 2012 Apple will be bigger than Microsoft in revenue, but far behind in traditionally and (how stupidly) measured "market shares".
Well, let me say this is wild speculation.

Revenue form this model would have been like a drop in the ocean compared with todays Apple growth potential and business model (it's the Mac that is the product, not Mac OS X)
Why are you people all so sure that there's just one winning business model and it's that one ALL companies must pursue? There are MANY good business models and it depends on products you sell which is the best for you. Google, Microsoft and Apple are very different companies and they have different business models. That doesn't mean one is successfull per se nor others are trash. Apple and Microsoft MUST have different business models because they sell DIFFERENT products. Saying that Microsoft business models is bad and Apple one is good is just a nonsense. In the days when Apple stocks were toilet paper, a company with the same business model (Sun) was skyrocketing (or kinda). So stop thinking it's the business model...

The rival, Microsoft, does not have this control. Today the personal computer is moving into peoples expensive fully decorated living rooms, so it better look good! No more PSC's hidden away in cellars and behind closed doors.
What does this mean? One could say that Microsoft can sell its product to millions people more than Apple can and make more profits. It's not the business model, again. Plus, I don't know if you noticed that but Apple has NO kind of product your describe (living room appliance)...! While Microsoft, Sony, Nintendo and others have. So what are we talking about?

Microsoft has now exploited it's market to a 95% extent on todays market size. But Apple ? Apple is just warming up! Which company has a greater growth potential ? You can guess!
I have yet to see that. To me, Apple is slowing down, expecially in iPod / iTunes market.

The problem for "Microsoft of the future" is that Microsoft´s business model has painted the company into a corner. Microsoft can't go into hardware. They can't go the Apple route. At least not without a declaration of war from zillion so called "pc-partners" and 100% of the market legislation body. First Microsoft would have to loose some hefty weight, i.e. market shares, before that could happen.
What are you talking about? Microsoft just entered that market! They decided to enter the console market (which is hardware) and they did. They decided to enter the MP3/sound players market and they did. They simply have no interest in entering the PC hardware market for the same reason IBM quitted. Microsoft makes almost the same profit hardware makers get by selling the software only! (Well, exaggerated but not that much if you check how much h/w makers get from a single PC sell).

You know, to me the best proof that Apple will have some problems exploiting new markets can be the fact that Jobs decided to enter Disney. Pay attention: AFAIK he entered Disney as Steve Jobs, not Apple itself, sign that Jobs was looking for investments and new chance to exploit. If he was so confident Apple could do that, he could have just brought Apple there (and save tons of money). We'll see what happens but I wouldn't be suprised when I will hear that "next year will be OS X desktop year!" ;-)

Reply Parent Score: 2