“Microsoft announced a streamlined corporate structure designed to boost growth outside its Windows monopoly; reduce the time it takes to get new products to market; and defend its turf more effectively against assaults from Google, Yahoo, Apple Computer and purveyors of free Linux operating software. Seven divisions will be reduced to three, each with its own president and more autonomy. The news, however, did nothing to lift Microsoft shares, which remain stuck in the mid-$20s, where they have been for five years,” The Washington Post reports.
Full article here.
Related articles:
Microsoft executives discuss Apple competition: preventing Apple from leveraging iPod success – September 23, 2005
Microsoft’s Ballmer: It’s true, some of Windows Vista’s features are ‘kissing cousins’ to Mac OS X – September 19, 2005
Microsoft suffers from malaise, key defections, Windows Vista struggles, lack of towels – September 16, 2005
Microsoft’s Bill Gates’ prediction of Apple iPod market share decline fails to materialize – September 18, 2005
PC World: Microsoft innovation – an oxymoron – September 15, 2005
Microsoft debuts Dashboard Widgets, er, ‘Microsoft Gadgets’ – September 13, 2005
Microsoft appropriates Apple’s ‘brushed metal’ look for Office 12 for Windows – September 13, 2005
Microsoft CEO Ballmer: Apple’s moved to Intel? Ho hum – June 07, 2005
Bill Gates: ‘I don’t believe the success of the Apple iPod is sustainable in the long run’ – May 12, 2005
Bill Gates jokes about Mac OS X ‘Tiger’ and calls Apple ‘the super-small market share guy’ – May 03, 2005
Windows czar Allchin says Apple copying Microsoft’s Windows Longhorn – April 27, 2005
Microsoft employees leaving due to (and blogging about) malaise smothering company – April 25, 2005
eWEEK Editor Coursey: Longhorn so far ‘looks shockingly like a Macintosh’ – April 25, 2005
Due in late 2006, many of Windows Longhorn’s features have been in Mac OS X since 2001 – April 25, 2005
Microsoft’s new mantra: ‘It Just Works’ ripped straight from Apple’s ‘Switch’ campaign – April 22, 2005
Apple CEO Steve Jobs on Microsoft’s Longhorn: ‘They are shamelessly copying us’ – April 21, 2005
Microsoft’s Windows Longhorn will bear more than just a passing resemblance to Apple’s Mac OS X – April 15, 2005
Microsoft CEO Ballmer: ‘Apple iPod users are music thieves’ – October 04, 2004
Microsoft CEO Ballmer on the digital home: ‘There is no way that you can get there with Apple’ – October 04, 2004
Bill Gates’ sarcasm regarding Apple iPod: ‘Oh, wow, I don’t think we can do that’ – September 07, 2004
Silicon Valley: Apple CEO Steve Jobs previews ‘Longhorn’ – June 29, 2004
Apple CEO Steve Jobs: Mac OS X Tiger ‘is going to drive the copycats crazy – June 28, 2004
Apple’s CEO Steve Jobs previews Mac OS X 10.4 ‘Tiger’ to ship in the first half of 2005 – June 28, 2004
Apple takes dead aim at Microsoft, ‘Longhorn’ with WWDC Mac OS X 10.4 ‘Tiger’ ads – June 28, 2004
PC Magazine: Microsoft ‘Longhorn’ preview shows ‘an Apple look’ – May 06, 2004
Microsoft concerned that Longhorn’s look and feel will be copied if revealed too soon – August 25, 2003
Windows ‘Longhorn’ to add translucent windows that ripple and shrink by 2005 – May 19, 2003
Apple leads; Wintel follows as usual – November 11, 2002
I’ll shed a tear for them…
…a tear of joy.
mommy I found poopoo in the sand box. . . ..o wait, that’s Microsoft. .
I could care less about M$ share price. What I do care about is Apple capitalizing on the current situation where we have clear and present advantages by advertising more and making significant market share (re)gains.
This company (unfortunately) is no where near dead, nor are they dying… at all. The restructuring will help them to a degree– ultimately, though, I hope it’s the technology that decides things.
I think one of the reasons M$ “won” the first round of OS wars is because of a generally ignorant public that were ready to “enhance” their ibms into unstable, glorified calculators. No one had expectations for what a computer should be because they really were very new and they were buying on the prospect of what COULD be. Now, more people know what to expect (though not anywhere near all)– and they are also unwilling to be saddled with pure crap.
Just because Apple is currently better, they don’t get to stay on top through divine appointment. Do I hope they win, yes! I can’t stand M$ business tactics, but it’s the technology that drives sales for most folks, not M$’s behind the scenes practices.
So there!
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Why can’t Apple advertise, even a little bit, on TV? They could easily reach 2 million macs shipped a quarter. That would be a huge boost to their bottom line and their market share, which will make it more worthwhile for the developers to stay. The only reason I can think of, which is debatably a good option, is that they will start marketing the Intel Macs when they come out.
I think they should pick a region of the US, and market to it. Make sure the Apple stores are stocked in that region and start putting ads up for Macs. This will create a culture for the Mac and as more people in that area use them, they will be able to help each other out. Then keep doing that in various places.
Stock didn’t go up because nobody believes what changes did occur has changed anything. Why? Because the main issues with Microsoft is there insecure operating system which being compromised every single day.
Until that stops nothing has changed.
Quevar,
You mean like those lame “Start” commercials Microsoft did? Or that weak set of commercials they’re running now?
WHAT could Apple show in 30 seconds that will get someone out to the stores and buy? In other words, HOW exactly will advertising something as complex as an operating system that runs on specialized hardware that can do what windows can’t… in 30 seconds?
I say just keep pushing the easy sell, the iPod. It’s already selling more Macs per quarter than any other advertising ever could.
Two points: First, why Apple doesn’t advertise? It’s only a matter of when they will advertise, not if they’ll advertise. Look at the iPod. When the iPod first came out, almost 5 years ago, there was almost no advertising; because Apple knew that us — their Apple OS core user base — didn’t need to see the iPod on TV to buy it; we saw the iPod on Apple.com and on MDN and other Apple news web sites and we bought iPods. Millions of them. I bought 2 1st generation, and several of each subsequent generation without having to watch a TV commercial for iPods. Only once they got the cross-platform Windows capabilities in iTunes; when Windows users became a real potential market for iPods did Apple start to advertise the iPods, and look what happened, sales exploded. The same thing will happen with OSX, once we have intel mac in the stores — Apple will advertise intel Macs and OSX and Apple Macintosh computer sales will go up, through the roof and towards the moon. Why? Because intel macs will be the new high end Windows hardware that every Windows user will dream of having, and it will also run OSX, intel macs will be the gateway to OSX for Windows users, who will buy them to run Windows, and will suddenly discover OSX and switch. Intel Macs will be better than Sony Viao’s, and better than anything Dell or HP or anyone ever made that could run Windows.
I still have an ongoing request for my favorite OS. I run 10.2.8 on my beige g3 266 powermac at home and 10.4.2 on a dual 1.8 at work.
the continuing work apple does on this OS is amazing but no matter what i’ve tried in the past my open windows still get occasional interference with the dock. this is really the only complaint i have. i like the dock, otherwise. maybe, the dock could expand with addiontal options like making it disappear altogether leaving just the command-tab function or maybe an option to create an off-limits area to any open windows.
You don’t just advertise Apple’s OS, you advertise EVERYTHING Apple does in a more general “Apple Technology” ad. Keep assuring the general public that whatever they want to do, Apple can help them do it better. You just can’t advertise the iPod forever.
“Intel Macs will be better than Sony Viao’s, and better than anything Dell or HP or anyone ever made that could run Windows.”
Stop dreaming. The quality of Macs is going downhill fast. Apple is spending its time and attention on iPods and not much on Macs. OSX is just OK and only a little better than XP.
A common misconception is Macs are not compatible with Windows – in 30 seconds you could tell people you can open and run Word, Excel and Powerpoint.
I had a meeting last week with a friend that happens to be an IT guy. I was going over some excel files I was giving him on CD. When Excel for Mac opened on my PowerBook he was taken aback. Then he asked what he had to do to convert the files so he could read them on Windows. He didn’t believe me when I said they transfer without any issues.
The issue of having to learn something new is the other area where people think it is going to be a challenge to switch.
If you want to know the current state of M$, read Isaac Asimov’s Foundation. M$ is in exactly the same state as the Galactic Empire at the start of Foundation. Appeared to be strong and healthy to most people, but was already on the inexorable and quite irreversible path of self destruction. It didn’t die immediately, but it died nonetheless.
We are witnessing a glorious day for humankind: The beginning of the end for a beast which costs businesses (and therefore consumers) untold trillions in lost productivity due OS instability, viruses, etc. The InterNet is slowed down unnecessarily by wasted bandwidth of all the virus infested Windoze zombies looking for new victims (as my server logs can attest).
M$ can re-org all they want. It just means they know they have a problem. But they are powerless to do anything about it. Part of what is sealing M$’s fate is their corporate karma. Nobody loves this company (except monkey boy balmer/fester).
I plan to dance on M$’s grave in about 15 years; sooner if we’re lucky.
Stock stuck in the $20’s?
How ’bout thinking stuck in the ’80’s?
iDont:
I don’t know what parallel universe you’re living in, but I cannot imagine how you can even compare OS X (from Jaguar onwards) with XP.
As I stated in another thread earlier in the week, I’m currently running a Keynote presentation at a local theatre on a keyboardless/mouseless Mac mini into a 42″ NEC plasma.
As far as I know, you still can’t boot up XP without a keyboard being present. You can’t run Keynote on XP. And there’s nothing mainstream in the Intel universe that has the same form factor, especially with a DVI out.
So arguably more stable, indisputably more secure, more flexible, better specified and better packaged. And better software: no, you’re right – I should be using a Dell with a noisy fan or power supply with Powerpoint.
As for Apple’s iPod focus, you need to understand that the iPod platform in all its forms is the best advertisement for Apple and its approach at the moment. Additionally, with Apple likely to shift some $2.5 billion worth of iPods in the coming holiday quarter generating around $450 million of gross profit, why should they not give the product that has the ability to generate nearly 50% of sales and gross profit equal priority.
And on topic, the worries for MSFT shareholders should be as follows: –
a) Declining market capitalisation: on the 5th September ’04, MSFT was worth $292.75 billion; at the close of standard business on Friday that value had declined to $273.03 billion – a reduction of over 6.7%. Five years ago, MSFT was pitching over $30 (adjusted for splits et al) and they’ve lost nearly 16% of their value. This is going to hurt.
b) A deflating market cap brings a problem in the software industry, namely that share options – the weapon of choice in recruiting and keeping stellar talent – cease to have any attraction.
Combine that with engineers complaining about a lack of vision and direction and former employees like Bruce Chizen apparently being dragged into criticising the “spirit” of the company and MSFT is seemingly starting to publicly suffer from intertia whilst drifting rudderless.
c) A lack of focus: Apple’s real focus can be abstracted as follows – Mac OS X, computers, iPods, content [iTMS], professional applications (Final Cut et al). Every single bit of it profitable.
Try doing that with MSFT: computers, peripherals, phones, PDA, software development, business software, games, consoles, TV, and God only know what else. And most of these side issues simply don’t make any money.
So MSFT could make more money by trimming some unprofitable businesses, which might help the company show some direction and increase profits. And that might help the share price which should help the morale issue. But hubris won’t let them.
If I was a shareholder, I’d be worried.
MCCFR: OK, OK, OK, I’ll be good! Please, don’t spank my bare bottom anymore. Please!!!
I’m reminded of what Fidelity Magellan’s Founder, Peter Lynch, once wrote. One of the major errors a company can make is to over-diversify. Lynch called it “deWORSEfication”.
It will be interesting to see how Microsoft’s new graphic editing programs will work out. I wonder if Microsoft will try on Adobe the tactics they used on WordPerfect: give away or under price a product to drive the competitor out of business, and then, one they control the market, raise the prices with impunity.
Who needs a computer – soon you can do all your computing via your cell phone. (Just add monitor and keyboard.)
Maybe that´s what the Apple iPhone should be.
Read here:
http://philip.greenspun.com/business/mobile-phone-as-home-computer
Microsoft is now beleaguered.
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This is simply re-arranging the deck chairs on the Titantic !!!
I love an overused cliche`!!!
Microsoft beleaguered? Not likely. Get used to it, folks. Windows will always be around. It’s the toilet paper of computing.
“This company (unfortunately) is no where near dead, nor are they dying… at all.”
MS, however, is not the ideal model of health.
From the Wall Street Journal’s (US edition) Sept. 23rd front-page article, “Battling Google, Microsoft Changes How It Builds Software”:
– In late 2003, Jim Allchin tapped a top computer scientist to map out Windows’ architecture (they didn’t have a map before?!?). The map “was eight feet tall and 11 feet wide and looked like a haphazard train map with hundreds of tracks crisscrossing each other”.
– In July 2004, Allchin told Bill Gates personally that Longhorn is “not going to work”. Around Sept. 1 2004, Allchin was at a conference where he suggested Longhorn be “reset” (i.e. scrapped and started from scratch) because it had become such a morass (can anyone say “Copland”?).
– Allchin knew Longhorn was a wreck from day one. Bill Gates himself authorized the shipping delays, and MS’ culture fought any changes at improving release schedules.
– “The mass of patches and agglomerations that made up Windows turned it into an easy target for viruses and other Web-based attacks”. No kidding. With 4000 engineers writing Windows in loose fashion, it’s a miracle Windows works at all.
Is this a company and product that 90%+ of computer users really entrust their data and businesses to?? YIKES! If MS’ problems are only half as bad and deep-rooted as they’re beginning to appear, why would anyone consider their stock or products? MS has become a huge blob that’ll take years to turn around; if there’s a safe bet it’s that there’ll be more reorganizations to come.
As for Apple, DON’T sit on your laurels! This is a golden chance to work your butts off and put Mac OS X permanently ahead of anything from Redmond.
I would love to be as beleagured as M$! Tghey may be stumbling a bit, but even if they didn’t sell a single new product for several years, they have enough cash to sustain themselves! It’s like a roach that can live for weeks without it’s head.
I do love thinking that the above post is right– advertising once Mactels can “absorb” windows. Apple’s new strategy is not to compete head to head with Windows, but instead to assimilate it into the borg through dual-booting machines. I love it.