Microsoft CEO Ballmer on why Apple is thriving

“Kevin Johnson, the president of [Microsoft’s online] division, suddenly and surprisingly resigned late Wednesday, taking over Juniper Networks, and leaving Microsoft’s online business in more disarray than it was already in,” Jim Goldman reports or CNBC.

In a memo to Microsoft employees addressing Johnson’s departure and competition with Google, Microsoft CEO Steve Ballmer also mentions Apple, pointing out that “Microsoft outsells Apple 30 to 1, but elevates the competition to a new level,” Goldman reports. “He writes: ‘In the competition between PCs and Macs, we outsell Apple 30-to-1. But there is no doubt that Apple is thriving. Why? Because they are good at providing an experience that is narrow but complete, while our commitment to choice often comes with some compromises to the end-to-end experience. Today, we’re changing the way we work with hardware vendors to ensure that we can provide complete experiences with absolutely no compromises. We’ll do the same with phones—providing choice as we work to create great end-to-end experiences.'”

Goldman writes, “It’s an interesting take on Microsoft’s position in the marketplace as it relates to Apple. Microsoft is indeed losing marketshare to Apple (2.5 million Macs a quarter start to add up!) because of all the well-documented problems and challenges with Windows Vista. But rather than focus on Vista’s shortcomings, Ballmer spotlights the strengths of the Mac.”

Full article here.

[Thanks to MacDailyNews Reader “JES42” for the heads up.]

How “narrow” is a platform that is a much better choice for the vast majority of personal computer users who are not short-sightedly shackled to some Windows-only app? That is really the only reason to run Windows and, if that’s the only reason why people run your OS, then you’d better keep developers from writing native versions of their apps for Mac (which, as market share increases have a funny way of promoting, they are doing in droves) or you’ve got absolutely nothing. For example, if Autodesk came out with a good, sound working Mac version of AutoCAD today, Apple would own the architecture market by next week. Architecture firms don’t pick Windows because it’s better, they’re stuck with it for now. The same for the real estate industry, etc.

Furthermore, there is no way that Microsoft “can provide complete experiences with absolutely no compromises.” Not unless they dump the HPs and Dells of the world and adopt Apple’s vertical integration model (control of the whole widget) and begin producing their own PC hardware. Too many cooks in the kitchen otherwise. Even if Microsoft did that, they’d still be stuck with a bloated, legacy-ridden, mess of an OS. And industrial designers the caliber of Jonathan Ive do not grow on trees. If Microsoft made Windows PCs, they’d end up with another Zune. There really is no good news for Microsoft. They don’t have the leadership, they don’t have a culture of innovation, and they don’t have the winning model. All they have are the vestiges of an illegally-constructed monopoly that they can no longer leverage indiscriminately to run roughshod over the tech industry.

The exact same points above work for iPhone vs. a fleet of clunky, junky Windows Mobile devices from every Tom, Dick, and Harry hardware maker. Just like they worked for iPod vs. Apple’s roadkill who all used to use the now-defunct PlaysForSure for their clunky, junky now-defunct MP3 players. Vertical integration trumps horizontal when it comes the end user experience and, drumroll please… end user experience is all that really matters.

Someday the world will look back on the period where Microsoft dominated personal computing as an unfortunate, wasteful mistake. The Dark Ages of Personal Computing is finally drawing to a close. The Apple renaissance is at hand!

Ballmer’s full memo is here.

[Thanks to MacDailyNews Reader “Rainy Day” for the heads up.]

69 Comments

  1. “Microsoft outsells Apple 30 to 1
    we outsell Apple 30-to-1

    Typical sales guy, he only understands the current numbers.

    Ballmy, it’s TOMORROW’S sales you need to be concerned with. You need to be positioning MS today to make those sales.

  2. Hey guys you all should see this video again. It should clear up any doubts you might have about Ballmer.

    It is now my FAVORITE youtube video. ” width=”19″ height=”19″ alt=”smile” style=”border:0;” />

  3. On another site Ballmer was quoted a bit more extensively about this.

    And, as I responded there, what he said basically amounted to saying was… they are going to please everyone.

    Not, try to please everyone, mind you, but that they were going to.

    Good luck with that, Mr. Ballmer.

    You’ll be more successful building an FTL drive for space exploration.

  4. Come on now. I’m a big fan-boy but Ballmer is right about market share. Too much American insular thought here.

    Mac OS is on 3% of the worlds newly sold personal computers. Some other form of Unix or Linux is on another 1%.

    The rest of the new personal computers sold have some form of Windows on them. That’s about 95% to 96% Windows.

    Everyone quoting these statistics fails to mention that a staggering 20% or so of these new personal computers have a bootleg copy of Windows XP or 2000 on board. No Microsoft sale there. So, that 20% can’t be market share. So the real ratio, world wide, is closer to 3 to 75 or 1:25.

  5. The BIGGEST crock of bull I have ever heard!… Microsoft offers choice? I sure would like to know how?!

    Dell = Windows
    HP = Windows
    Gateway = Windows

    Where is the choice here?? The end results for all (supposed) choices above end with the same Windows equation!!

    This is an example of choice…

    Apple = Mac
    Commodore = Amiga
    Dell = Windows
    Sun = Solaris
    etc…

    Having the choice of (only) Windows on various PC OEM hardware is like having your choice of bottled water at the local 7-Eleven ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

  6. Mike, Macintosh, etc. – 84 Mac Guys is right. I would love to see more serious professional software like CAD or GIS on the Mac. A whole industry will switch. Unfortunately as a long time ArcGIS user I think the entire desktop software design at ESRI has already invested in Windows paradigm. They are still engaging in just porting from COM to dudNET for Pete’s sake. To make ArcView actually ‘work and feel’ natural on a Mac – efficient, integrated, adhere to Human Interface Guideline, complete and comprehensible API, UNIX-based, Cocoa-friendly – they would have to rewrite the whole thing, or dig up their old Unix source ArcInfo classic as the new code base. Forget about even optimizing for Snow Leopard.

    With the promise of 10.6, seriously if some smart software companies can take advantage of these void left by these legacy software firms when they took their product to Windoze-only, the entire scientifc, engineering, and maybe even graphic design community can take their work to a whole new level. Leave Forbes or WSJ to debate how MS Office should *evolve*. That is my wish.

  7. @DudeMac

    Awesome reply. I’m quoting you because it bears repeating…

    The BIGGEST crock of bull I have ever heard!… Microsoft offers choice? I sure would like to know how?!

    Dell = Windows
    HP = Windows
    Gateway = Windows

    Where is the choice here?? The end results for all (supposed) choices above end with the same Windows equation!!

    This is an example of choice…

    Apple = Mac
    Commodore = Amiga
    Dell = Windows
    Sun = Solaris
    etc…

    Having the choice of (only) Windows on various PC OEM hardware is like having your choice of bottled water at the local 7-Eleven

  8. Does anyone thing that Ballmer just figured it out? It’s the most educated thing he’s ever said. He’s got the money to do anything he wants…

    If they were to build a legacy free OS and a box to go with it and leave enterprise as a separate category till it caught up, they might just have something there…

  9. @ AutoCad Alternative
    Your brother could try Vector Works. I’ve been using them for years. Their software can read AutoCad files and can import and export in files in the IGES format as well. I believe they are up to version 12 . Prices range from around $850 to $2500 for the whole magila. TurboCad is a cheaper alternative and they make software for both platforms. TurboCad starts at around $150.

  10. Microsoft does not outsell Apple 30 to 1. Microsoft does not sell computers. And Apple does not sell an OS-in-a-box, except as an “upgrade” to existing Mac owners.

    If “choice” was so important, Microsoft would continue to allow hardware makers the option of installing out-dated Windows XP instead of Vista.

  11. @ AutoCAD Alternative:

    AutoCAD is nothing compared to ArchiCAD. AutoCAD is a tool for 2D drafters while ArchiCAD’s approach is that of creating the 3D virtual building first, and from that you could take any 2D drawing you’d need. Make changes to the virtual building and all your other drawings would be instantly updated. Or just visit http://www.graphisoft.com and download the demo.

  12. The Other Steve said: “As for Ballmer, I don’t think he’s the one to make this work for Microsoft. He’s a sales guy for god sake! Why the shareholders let a sales guy run (or make that ruin) the company is beyond me.”

    Ballmer = Scully do you think?

  13. “Dell = Windows”
    When was the last time you looked at the dell website? You might want to look again, Dell have been selling Linux for a while.

    As soon as Apple get off their arses and allow you to install AppleOS on any hardware they will never be as good as MS.

  14. Also Does anyone notice the irony in this mac news take on this?? I’ll make it simple…….

    “How “narrow” is a platform that is a much better choice for the vast majority of personal computer users who are not short-sightedly shackled to some Windows-only app?”
    So what you are saying is it is better to run an OS that no one writes any software for just so you can be happy in the knowledge that you cant get any software for your OS and no local computer companies can support you?

    “That is really the only reason to run Windows and, if that’s the only reason why people run your OS, then you’d better keep developers from writing native versions of their apps for Mac (which, as market share increases have a funny way of promoting, they are doing in droves) or you’ve got absolutely nothing. “
    Yeah, if the only reason you run windows is because every piece of software is for windows and Windows is compatible with everything then MS is stupid, Stop writing your product to be compatible with everything and stop making people write software for your OS. Come on guys, start writing exclusively for Apple macs, reduce your potential market from a few billion to a couple of million and code for a propriety Linux distro!!

    “For example, if Autodesk came out with a good, sound working Mac version of AutoCAD today, Apple would own the architecture market by next week.”
    I completely agree, if AutoDesk made AutoCAD to run on a PC that was absolutely no different at all to the existing stuff they currently write it for except for a completely and utterly different operating system…..everyone in the world would immediately ditch their current PC and start buying overly priced incompatible macOS apple machines at the drop of a hat!

    “Architecture firms don’t pick Windows because it’s better, they’re stuck with it for now. The same for the real estate industry, etc.”
    I agree, People dont sell windows because its better, no wait, hang on a second……they do!

Leave a Reply

Your email address will not be published. Required fields are marked *

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