Why is Microsoft so afraid of Apple?
08. Feb, 2007 
5 Comments
This is something that I’ve been wondering about for the past few weeks. The more I think about it the less it makes sense. If Apple has a measly 6% market share or there about (in the US based on recent figures) why do Microsoft even care what Apple does? Statistically, Apple should be of such an insignificant level of competition that just ignoring the company would be the best response. But they don’t. In fact, Microsoft does quite the opposite. Take, for example, Vista’s license agreement that forbids you installing the Home version under virtualisation, clearly targeted at Mac users. Why would Microsoft care if people install Vista on the Mac if they weren’t worried about Apple, because a sale is a sale? (yes I know that it affects linux and other windows platforms too, but as it is the “home” version of Vista, the people most likely affected by this are potential Apple customers) This seems to be a deliberate attempt to discourage people from buying Macs to run with Parallels (From what I can tell, Bootcamp is not affected). But, as Microsoft doesn’t make hardware, and if Microsoft makes a sale either way then why would they do this? Just pure greed?
Then there’s Bill Gates’ outburst over the Mac Ads. Again, the best response would have been to just ignore it but his bitter angry response just gave endless free publicity to the topic, benefiting Apple far more than Microsoft.
Consider also the almost exact duplicating of certain aspects of OS X within Vista. Im not talking about having the same features, that’s one thing, but aspects of Vista are a complete and blatant copy of OSX. But why? Is it because Microsoft were just that unoriginal, or are they trying to prevent migration to OS X? I mean, whatever about the system features and Aero, hell, even gadgets are mild compared to the mail, calendar iPhoto and iDvd clones. They even changed “my computer” to “computer”. Once again, why? If Apple are just a tiny dot on Microsoft’s radar why do they appear to be so preoccupied with copying/defeating them?
What about the Zune? Why even compete. It’s not part of their market, and they just piss off their partners? On top of that, they plan on making a massive loss on Zune for several years, so again I ask, why bother? The only point of the Zune seems to be to try and undermine the iPod.
No one, but the most die hard of Apple fans ever expects the Mac to ever defeat Windows in terms of market share. They can certainly stand to grow considerably, but inertia alone will keep the windows market dominant for years to come. So then, I have to wonder does Microsoft have some internal data that suggests Apple is set for far stronger performance gains that anyone else has expected? Has the development process with Vista been so difficult that they are seriously concerned about the future desktop roadmap and need to quash any potential competition? Just what does Microsoft know that we don’t? Or are they simply paranoid?
This article from the Globe and Mail might provide some insight:
“The past few years have shown, however, that the best company — and by far the best investment — has been Apple. Its shares have climbed more than 700 per cent to the $83 level, and its sales have soared 150 per cent to about $21-billion. Microsoft’s sales are now only twice as large (although its stock market value is still substantially larger).
A financial blog called 10Layers.com caused a stir recently by suggesting that if current trends continue, Apple could actually surpass Microsoft in terms of sales within the next five years, hitting the $65-billion revenue mark (according to one forecast) in 2010 or 2011.”
Interesting times lie ahead. When I first read that article a few days ago about Apple potentially passing Microsoft in sales I was skeptical, but the more I think about it now, the more it seems to fit with Microsoft’s actions of late. At the end of the day, both companies exist to make money for their share holders and all the market share in the world won’t matter to Microsoft if Apple is generating more revenue from a lucrative consumer electronics and computing hardware product portfolio.
(Updated with additional commentary)
Technorati Tags: Apple, Microsoft, OS X, technology, vista, Windows, Zune
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I think if you want to write about technology and want to be taken seriously, you should learn proper grammar. Microsoft is not plural so the headline should have said this, “WHY IS MICROSOFT SO AFRAID OF APPLE?”
It’s a blog, it’s not the New York Times. Perhaps between having a day job, thinking creatively and enjoying things like, oh I don’t know sunshine and fresh air rather than spend my time trawling the internet correcting tiny typos in other peoples writing, I let the odd mistake through. Oh, and I am takes seriously.
I think Steve Jobs summed it up years ago when he said that Microsoft just didn’t have any taste.
Microsoft knows this. They also know they don’t have the technical skills to compete with Apple. This is what scares them.
The cat is out of the bag, everyone knows windows is a rip-off of OS X and by the time windows gets updated again OS X will be streets ahead again.
I think Gates got mad because he knows that Microsoft should be producing innovative products and he’s embarrassed that they can’t.
Just human nature.
Up until 1997 , Apple was “bigger” than Microsoft – where “bigger” means higher gross sales. It’s not inconceivable that MS growth could flatten or reverse, while Apple continues to grow.
1995 Sales
Apple -$11.2B
MSFT – $5.9B
1996 Sales
Apple-$9.83B
MSFT-$8.67B
1997 Sales
Apple-$7.081B
MSFT-$11.35B
This is a c|net news survey and there have been several similar ones with similar results. It’s no wonder Microsoft are shitting themselves.
The survey:
How soon do you plan to move to Microsoft’s latest OS?
I’m sticking with the Mac–or moving there soon. 50.3%
Windows XP is going to last me a good, long time. 21.4%
Whenever I buy my next PC. 20.8%
I’m standing in line right now to buy it. 7.5%
Total votes: 15040