The “difference between Apple and Microsoft is not just a philosophical stance, but reflects the two companies’ differing business models,” Daniel Eran reports for RoughlyDrafted.
• Apple makes its money selling hardware, so it was always in that company’s interests to sell the best hardware possible and make sure its Macs offered features and performance ahead of bargain PCs. Hardware quality and the user experience were valued over high volume, low margin sales because that’s what enriched Apple.
• Microsoft makes its money selling software licenses, so it embraced the idea of selling new software for old hardware, running old applications on a new version of Windows, and selling copies of Windows for PCs of any price. Volume was valued over hardware quality and user experience because that’s what enriched Microsoft.
Eran writes, “Today, those same legacy factors and business models are still in place. That’s why Apple is unlikely to ever make major market share gains across most of Microsoft’s established business, but its also why Apple is well positioned to cherry pick the most valuable segments of the market and offer the best product to users able to make a choice.”
“It also complicates Microsoft’s ability to take Apple on directly. Vista carries so much baggage from Windows XP and the wide swath of third party software it has to accommodate, that Microsoft is left without the ability to move quickly and decisively to match Apple’s moves,” Eran writes. “Microsoft has become the same lazy dinosaur that Apple had turned into in the early 90s.”
Full article here.
MacDailyNews Take: Is Apple “unlikely to ever make major market share gains” if they offer hardware that runs not only Mac OS X and highly-regarded Mac-only software, but also runs creaky, old, legacy-ridden Windows and Windows applications? Oh, wait, they do – and the Mac is starting to take market share from Microsoft. People who use both Mac and Windows overwhelmingly choose Macintosh. Let them run both and the Mac wins. Windows market share is largely based upon customer ignorance. That is a weak advantage that can be overcome, as Apple is proving via their growing retail store network and allowing Windows-only users to take their “insecurity blanket” with them to the Mac, where they can clearly see the folly of their ways for themselves. Windows Vista is little more than lipstick on the XP pig: many more users today are capable of seeing Microsoft for what it really is than in the mid 1990’s.
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