Bill Gates explains Apple’s ‘huge disadvantage’

Microsoft Chairman Bill Gates spoke with CNET News.com’s Ina Fried about “why Microsoft’s recent moves will trump Apple in the digital living room.”

Fried: Do companies like Apple that do both the hardware and the software–do they have any kind of advantage when it comes to entertainment-type scenarios?

Gates: They have a huge disadvantage in the kind of variety–design points, price points, distribution approaches. They just don’t get that. They do get to do this tightly coupled monolithic design. What we have to make sure is that we are working with the partners so we get that creativity of the close coupling while the variety of partners is such that we get something they really don’t have.

If you want to point to why the Windows PC has become such a successful, central thing, that enabling of partners, including all those great hardware partners, I’d say that’s been very big.

Video clip here.
Didn’t work so well for PlaysForSure, did it, Bill? Vertical integration is Apple’s huge advantage and Gates knows it. If Apple’s approach is such a “huge disadvantage” in the digital entertainment market, why did Microsoft try (and fail) to fake Apple’s approach with the Zune (the hardware is really a rebrand of the already-failed-on-the-market Toshiba GigaBeat with a weak Wi-Fi component soldered on while the software is typical Microsoft mediocrity). Why did you try to emulate a “huge disadvantage,” Bill?

Gates’ actions speak infinitely louder than his words.

If Apple’s at such a “huge disadvantage,” then why is Gates’ company trying so hard (and failing so spectacularly) to copy Apple’s Mac OS X and iPod+iTunes?

People are much more tech savvy today than they were back when Gates was peddling fake Macs as “good enough” and consigning the world to the dark ages of personal computing – from which many are just now finally emerging. The world today doesn’t want infinite choices of mediocrity and worse; we want devices that work well and look good; two areas about which Microsoft knows very little and where Apple dominates.

Related articles:
Apple has proven that vertical integration works better – October 24, 2006
Microsoft tries to match Apple’s vertical approach – October 11, 2006
Apple was right all along: vertical market quality trumps horizontal market woes – April 30, 2006

15-year Windows vet tries Apple Mac: ‘My God! This is amazing!’ – December 04, 2006
Embrace and Extinguish in action: TechIQ’s ‘The VAR Guy’ dumps Windows, switches to Mac OS X – September 25, 2006
The Age: Switch to Apple Mac; just say no to Microsoft Windows – August 15, 2006
Liberal blogger on switch from Windows to Mac: I’m sold – August 03, 2006
Top Ten Reasons I’m Glad I’m a Mac Switcher – June 20, 2006
Sydney Morning Herald Tech columnist dumps Microsoft Windows, switches to Apple Mac – June 13, 2006
Apple CEO Steve Jobs’ ultimate goal: ‘to take back the computer business from Microsoft’ – June 16, 2005

86 Comments

  1. uhhm…..kids: DONT sniff glue or gasoline!!!!….you saw what happens!

    “Gates: They have a huge disadvantage in the kind of variety”….

    variety…uhmmm like 140.000 virusses versus 0 virusses….

    MacB.

  2. Mr. Bill has a point: the Mac is a mono Apple product and with 5 to 10% share it seems to be happy.
    We all know, by experience, how difficult it is to get people buying a Macintosh computer,
    when a PC is the standard at work and at home.
    If Apple sells a mac OS X for any PC version they cut in theit own meat .. again.

  3. “So we get that creativity of the close coupling while the variety of partners is such that we get something they really don’t have.”

    Exactly, Mr. Gates, this coupling with partners creates a computer system that is half baked and doesn’t work for she-ite! It is Apple’s ability to design the entire widget that makes it superior.

  4. Yes, Bill, it was big…problem is…it only works well enough to pad your wallet instead of being an intuitive complete hardware/software solution. The carpet matches the drapes at Apple, Bill. Your hair color really needs an upgrade, Bill.

    I would release a spreadsheet/database just because he said that, if for no other reason.

  5. Gates’ answer to the question would have been perfect if he was trying out for the Black Knight part in a remake of Montey Python’s Holy Grail.

    Gates is shouting at Apple, “Running away eh? You yellow bastard, Come back here and
    take what’s coming to you. I’ll bite your legs off!”

    MW: clearly, as in Gates is clearly delusional.

  6. I actually think Microsoft’s biggest positive is the Xbox 360; something that they designed and now control the entire widget. Now that it’s in a lot of homes, it appears that Microsoft is trying to use it as a central entertainment hub to take over the living room and it’s been more successful as far as adoption by consumer than Windows Media Edition.

    But that fact is, of course, exactly counter to what Gates said is their “advantage.”

  7. Well, the interesting thing is that one of the shining points for M$ is their Xbox system which is both hardware and software and doesn’t have hardly any variety in options or price points. If they actually had some innovation (something like the Wii controller) they would dominate that market. Alas… Innovation is squashed at M$.

  8. Tightly coupled is good. Especially after loose rhythmic wetting.

    He’s right that we don’t get the variety of design, price and distribution points. We don’t get the crappy form factors, misleading pricing (relatively speaking), or disinterested salespersons. But the biggest thing we don’t get – the crucial thing we are missing out on – is the character-building experience of relying on the Windows OS.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.