“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?
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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
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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
And, oh yeah, too much caffeine in the AM and happy hour way too early in the afternoon for MDN, imo. Probably a fun guy or gal to rub elbows with at any rate.
I just saw some ZDnet Mafisoft lapdog on MSNBC being interviewed around the topic “Has Microsoft Lost It’s Mojo?”
The interviewer asked the question in context of all the “cool” things Steve Jobs and Apple are doing.
The lapdog spoke positively in glowing terms about how great Mafiasoft is and that they are a “mature” company so one can’t discuss whether or not the have lost their mojo.
I guess Apple is not a mature company? Damn these Mafiasoft lapdogs are disgusting and insipid.
Rock on Steve!
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ADVERTISING…NOT NOW!!!
The Macs have just migrated to Intel. Granted they are selling well, but shipments are being delayed. Also U.B. software is not universally available. Nothing would be worse than ‘switchers’ going to buy a new Mac and discovering 1) they can’t get it for another week or two, and 2) there is no software for it.
Cut Apple some slack. All the pieces are almost in place (fast chip, good software, new hardware). After they are, then they will advertise.
(And don’t start talking about the past 10 years. Apple has been struggling for a loooong time to stay relevant. And with the problems with getting chips from Motorola and IBM, then was not the time)
I agree that timing isn’t right to start a full advertising blitz — they’d get customers they couldn’t handle. But, it is time to begin rolling out the OS advertising campaign
Get it started – advertise on Disney owned stations networks! As each new product is introduced this year kick up the market saturation until by the time 10.5 is introduced everywhere you turn you see Mac OSX and/or Mac hardware ads.
The reason they don’t advertise in the mainstream is because there are too many dumb computer buyers.
Can you imagine the number of RETURNS Apple would have from buyers who could not install their Microsoft Money and all their other **Windows** based games on their new Mac????
The only way they could advertise is to mention clearly in the commercial, “Oh, this computer does NOT do Windows nor will it run ANY of your existing Windows software.” Who’s gonna go to apple.com and order a Mac after that kind of commercial? The same number of people that are buying them now. The informed.
Loved that MDN take. Sounds like it is time to dump some AAPL and scoop up some MSFT.
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?
Because you are so emotionally invested in what others think and do has nothing to do with Apple and their marketing strategy. You doom yourself.
Microsoft got to No. 1 with very little advertising. Apple is doing fine. I trust Steve and Co. more than I would MDN on this matter. MDN can’t even get the user interface of its own website right – it is riddled with adverts, has too much bright (migraine inducing) blue and carries popup ads, that it refuses to remove….
With or without advertising Apple is going to break all the records in 2006.
I’m currently a windows “power” user, who was completely blown a way by the look and feel Apple software when I visited an Apple store a few weeks ago. So I would agree that the software does not seem to get enough exposure.
I do suppose though that if they software were promoted heavily that it might cater to Microsoft who could respond with “x million people and businesses use Windows every day” yada yada and make Apple seem like an also ran.
So I will defer to SJ’s judgment on the advertising for now.
meanwhile I look forward to purchasing my first Mac(s)
Nice one – DA561. Most of us have started from exactly where you are now..and have never looked back except to wish we had done it earlier!
“What’s the big secret, Apple?”
I swear there must be a huge conspiracy behind this. Bill has something big on Steve or Apple.
Just because you’re paranoid doesn’t mean someone isn’t actually out to get you.
I have seen more Mac commercials in the last month than in the last six years combined. Seems to me that the advertising will increase once the models come out.
But I agree– less with the Obsession-perfume-like commercials and more with real-world examples of why OS X rocks.
Is it more important for Apple to keep making reliable hardware, great software and remain profitable or is it more important for Apple to gain market share so some of us in the Mac community can brag about it?