Microsoft executives acknowledge Apple’s ‘iPod Halo Effect’

21 years ago

“Microsoft’s chief executive, Steven A. Ballmer, made a concerted effort [yesterday] to persuade Wall Street analysts that the world’s largest software publisher will again become a growth stock,” John Markoff reports for The New York Times. “Microsoft’s top executives have become increasingly frustrated over the last five years as the company’s stock first declined and then remained flat while some of its competitors’ shares have soared. Several analysts said today that Microsoft would be hard-pressed to make the case for growth prospects until it established a positive market reception for new versions of its Windows and Office programs, due in the second half of next year.”

“On Wednesday, the company shipped the first public test copies of the next version of the Windows operating system, now known as Windows Vista, to outside software developers. The program, which is roughly three years late to market, by some estimates, will go through two long test programs before being commercially available in the second half of 2006,” Markoff reports. “Today, Microsoft gave an extended demonstration of the program to the financial analysts, pointing to advantages like a unified version for corporate users – rather than multiple versions to address various needs within a company – simplifying the job of corporate information technology managers.”

Markoff reports, “Many features shown today are ones already introduced in Apple Computer’s OS X Tiger operating system. During today’s briefing, Microsoft executives acknowledged that the popularity of Apple Computer’s iPod music player had indirectly helped sales of Macintosh computers. ‘The halo effect enabled them to go after PC users and sell them Apple products,’ said Will Poole, the Microsoft executive in charge of desktop operating system products.”

Full article here.

MacDailyNews Take: The halo effect enabled Apple to go after PC users and sell them Macs, Will. Come on now, you can say it: Mac-in-tosh. Try “podcasting,” too, while you’re at it. Microsoft’s stock chart looks like a Zamboni drove over it. We’re not doctors, but to us that chart says one thing: flatline. It’s smoother and flatter than even Ballmer’s head. Compare it to Apple’s over the last three years here; it’s Everest vs. the parking lot. Monkey Boy Ballmer dances while Redmond burns.

[Updated article layout 7/29, 9:34am EDT]