“Microsoft reported solid earnings on Thursday, but the results won’t necessarily help the world’s biggest software company shake its recent image problem as the stodgy veteran in the age of Internet software youngsters,” Dean Takahashi reports for The Mercury News. “The company reported earnings of $3.65 billion, up 5 percent from $3.46 billion a year earlier. Revenues were $11.8 billion, up 9 percent from $10.8 billion a year earlier. Analysts had expected 33 cents a share, according to Thomson First Call.”
“Though the numbers and outlook are good, the company’s single-digit growth and stagnant stock price have some analysts worried. ‘It’s been languishing quite a bit and is reminiscent of the old IBM,’ said Rob Enderle, an analyst at the Enderle Group in San Jose. ‘As a company reaches a certain size, it loses its edge.’ Microsoft’s slower growth comes amid a number of larger concerns. Critics have said that while Microsoft bogged down in antitrust litigation, it fell behind Internet companies such as eBay, Yahoo and Google. Those companies have becomes such financial powerhouses that they can invest more heavily in sectors such as Internet search than Microsoft itself can,” Takahashi reports. “Google was able to score a major search partnership with AOL despite Microsoft’s best efforts. AOL still leads in instant messenger software, while Apple is far ahead in digital music.”
Takahashi reports, “The company is betting that its Windows Vista operating system debuting in the fall will revive consumer interest in new computers, similar to the waves of buying that occurred when Microsoft launched Windows 95 and Windows XP. But it isn’t clear if consumers are even aware of the new operating system and what it can do for them, Doherty said. Most Vista sales are likely to be replacements, rather than brand new PC buyers, Enderle said.”
Full article here.
Betcha Microsoft will advertise their Windows Vista in television ads when they finally release the thing. And then the great unwashed will think Microsoft invented it all because Apple once again blew their chance with insipid stupidity like their current Intel ad/music video rip-off that insults the very audience that they’re trying to entice. Brilliant, Apple. When people everywhere proclaim Windows Vista to be the greatest thing since sliced bread (just like they did with the putrid Windows 95), CEO Steve Jobs and other Apple executives (who can’t or won’t open their mouths to talk some sense to him) can sit around screening iPod ads and congratulating themselves for having such a great secret platform while looking down upon Microsoft Windows and the rest of the world with all their dull little boxes that they didn’t buy from Apple. Fools.
Why does Apple insist on dooming us Mac users to years (decades now, come to think of it) of telling Windows sufferers, “We’ve been doing that on our Macs for years,” only to be met with incredulous stares? What’s the big secret, Apple?
Advertisements:
• MacBook Pro. The first Mac notebook built upon Intel Core Duo with iLife ’06, Front Row and built-in iSight. Starting at $1999. Free shipping.
• iMac. Twice as amazing — Intel Core Duo, iLife ’06, Front Row media experience, Apple Remote, built-in iSight. Starting at $1299. Free shipping.
• iMac and MacBook Pro owners: Apple USB Modem. Easily connect to the Internet using dial-up service. $49.00.
• iPod Radio Remote. Listen to FM radio on your iPod and control everything with a convenient wired remote. Just $49.
• iPod. 15,000 songs. 25,000 photos. 150 hours of video. The new iPod. 30GB and 60GB models start at just $299. Free shipping.
• Connect iPod to your television set with the iPod AV Cable. Just $19.
Related articles:
Microsoft aims to beat Apple in race to living room; an opportunity bigger than Windows – January 24, 2006
Apple’s in the best position to lead Americans into digital living room – January 24, 2006
Apple, Intel, Microsoft plan living room assault in 2006 – December 16, 2005
iPod accessories now surpass $300 million annually as iPod paves Apple’s path into living room – December 12, 2005
RUMOR: Apple to employ Intel’s ‘Robson’ NAND flash tech to create ‘instant-on’ Macs – November 22, 2005
NY Times’ Pogue: Apple’s iMac G5 with sleek, virus-free, spyware-free OS earns place in living room – October 19, 2005
Apple’s shift to Intel really all about Hollywood, owning the living room, and Transitive – June 05, 2005
Apple and Microsoft battle for control of future living rooms – June 01, 2005
Apple Computer will own the living room, not Microsoft – January 10, 2005
Can Apple crack the living-room conundrum before Microsoft? – December 30, 2004
NY Times: Can Steve Jobs put Apple in the center of your living room? – March 22, 2004
Uh-oh, Enderle sees Microsoft “languishing.”
Buy MS stock!
Uh-oh, Enderle sees Microsoft “languishing.”
Buy MS stock!
Uh-oh, Enderle sees Microsoft “languishing.”
Buy MS stock!
Uh-oh, Enderle sees Microsoft “languishing.”
Buy MS stock!
“But it isn’t clear if consumers are even aware of the new operating system and what it can do for them, Doherty said.”
Why on earth would that matter? Why would you want consumers to know all about the upcoming system now, when it isn’t ready yet? And anyways, why would consumers know anything about Vista in the absence of any marketing and promotion?
Come to think of it, why would consumers know anything about OS X in the absence of any marketing and promotion?
Market Cap as of closing today:
PIXR 6.78B
DIS 48.24B
AAPL 60.96B
——-
115.98B
MSFT 282.08B
Darn. M$ better do something quick. SJ’s catching up fast…
It’s amazing that M$’s profit is almost a third of its revenue. Apple didn’t do that bad this quarter, but their profit was only 1/10 (0.5B) of their revenue (5B). Software is a lot more profitable than hardware.
Still Apple’s revenue was 50 % of M$’s. I wonder when Apple will break the 10B barrier? The more they make the greater the percentage of their profit to revenue will be.
It’s going to get very interesting this year.
This constant bashing of the Apple ads is getting irritating. It’s a 30-second branding commercial for chrissakes, not a 30-minute demo video. The whole point is to make the product look cool. And it succeeds, wildly.
People who aren’t fast-forwarding their TiVo past it in the first place are going to, if you are lucky, have two take-away impressions of the ad. One visual, one thematic. The visual takeaway impression of this ad is that Macs look cool–it’s an undeniably futuristically great-looking commercial and people will associate Apple with this hipness.
And the message conveyed to the viewer, who unlike everyone here is not over-analyzing the damn commercial but half-watching it at best, is that Apple is taking the technology you are familiar with and making it much, much better.
Much like they did with a certain portable music player a few years ago. How much technical info, or for that matter any info at all, did all those dancing silhouettes convey? None at all. Did they work? Hell yes.
Lighten up, people. Apple knows exactly what they are doing. When you are making branding commercials, you have to lay the groundwork. There will be more and different commercials to come, I’m sure.
Maybe even some that convey technical info. But that’s not what you start with.
Apple’s been running fscking image branding ads since 1997. That’s enough of a start, okay? 8+ years is enough branding.
Apple, how about you show Spotlight, Expose and all the rest and hurry the fsck up before Microsoft shows they world what they “innovated” in Vista while neglecting to mention that they stole it all from Mac OS X?
“This constant bashing of the Apple ads is getting irritating.”
NO IT’S NOT. Apple *needs* to wake the heck up here. MDN’s take is right on. And how often is MDN’s take critical of Apple? Rarely. Good on ya, MDN, for having the guts to say what is right.
MW: Hope, that’s all we have for Apple’s advertising.
Some one needs to get the message to the Apple execs because it is a burden on us to try and demonstrate and convince myth-ridden potentials to buy a Mac.
Apple can finally DISPELL the myths through pinpoint advertising their OS, spotlight, Expose (ya’ know…those video clips Steve shows in his keynotes). C’MON STEVE FOR CRYIN’ OUT LOOOUUUDDD!!!!
In the mean time, I’ve been telling potential buyers to visit an apple store where they can test drive the Mac and iPod technology, play with the digital technologies and ask questions.
I live in Southern California where there are a ‘grip'(new generation hip talk meaning “a whole lot”) of Apple stores.
If you talk to any potential buyers, lead them to an Apple store where you can actually demo the Mac for them and at the same time SOMEONE E-MAIL, MAIL, PETITION STEVE TO FINALLY AND PROPERLY ADVERTISE THE MAC!!!!!! I tried to e-mail him on many occasions mentioning this but to no avail!
MDN great take again, are we expecting a big push on 1 april, I hope so. In the Independent newspaper 26th Jan it was reported that the CEO of HSBC bank in the UK has ordered a total revamp of all its branches following his visit to the apple store in London. You don’t need to be a genius to know that HSBC service is crap. icharge, iwontlisten, ifuckyou, idon’tgiveatoss are all taken, sorry!! Perhaps iscrewtheworld is still available.
Security, security, security.
Push the NO VIRUSES, no spyware, easy networking, real plug and play memes.
Others have come up with great tags.
=It Just Works.
=Because Life’s Too Short
His Mercurialness may be concerned with building more demand than Apple can easily supply. Maybe that’s a big concern, but it’s work trying to build demand. C’mon Apple! Go for it!
I vote that MacDailyNews stops giving their lame take on every story. You folks bitch about crapy apple ads and apple’s 0 virus status more often than I tie my shoes. I come to this website because it is a convenient place to get a number of apple news stories in one easy location–kudos for doing a great job at providing an overall nice website. Recently, though, your opinions have been repetitive and closed minded.
>But it isn’t clear if consumers are even aware of the new operating system and what it can do for them, Doherty said. >
It can do nothing for anyone right now, because it’s still on the horizon. Or vista, in the distance.
Jamie. You are dead wrong. You have to speculate (advertise) to accumulate (sell stuff).
Perhaps some creative types can get together online and make some internet based viral ads about the Mac advantage and send them around in e-mails. Granted, this method of delivery sucks, but humorous ads get sent around all the time for cars, beer etc, why not Macs??
FFS APPLE!
ADVERTISE THE OS!!
Jesus – it dont take an einstein to work out that if people dont know you have a product how on earth do you expect people to buy it!!
Look at all the iPod advertising everywhere – and look at the iPod sales figures.
Imagine if Apple advertised the OS like that – double market share in a year, that is what would happen!
Why can’t we just wait till we see Apple ads constituting every second commercial on ABC and ESPN, and before every Disney movie?
Oh and by the, what happened to all the Enderle bashers?
I agree. Apple needs to advertise the capabilities and security aspects of their operating system.
FAO: MDN, most times I like your ‘spin’ as they say, but all this harping on about Apple ads is getting long in the tooth. If Apple REALLY started advertising then they wouldn’t be able to take the rush. I’d rather they took it one step at a time and got there unscathed. Having said that some nice low key stuff on OSX would be good, but then I think their stores are an incredible advert. The central London store is always full and it has an awesome position. So I think they are doing just great.
Time to start advertising the hardware SJ, and not just the iPods.
You have probably 11 clear months before the Monster is let out of the box; make the most of them.
And when the time comes, when it’s good and ready and the people want it, give them the good software to run on their bland little machines too.
MDN word: ‘give’. It’s what the world is waiting for…
OHHHH OHHHH
MYYY P-P-P-P-P-OOOOOOOOO!!!
IT GETS SO BIIIIIGGGGGG!!!!!
IT’S COMING… OUTTTTTTT!!!!!!!!!
Nice buying opportunity now that Apple (AAPL) has settle back to the low $70s. As the man said, this will be an interesting year. Talk is cheap. Time now to invest into your favorite company. Sell Microsoft to buy Apple makes perfect timing or in six months say I wish I had of …
MDN Magic Word = down
“some analysts……….stagnant”……..it doesn’t look that way to me. I think Apple is in good shape to change the pc world and entertainment business as well.
That being said, you still have to love those island formation shorts when they happen. I am sure everyone who bought aapl at those smart spots on the way up got out at 85, right?