“In a recent internal memo, Microsoft CEO Steve Ballmer discussed the various threats to the company, including the surging Apple,” Joseph Weisenthal reports for paidContent.
Weisenthal reports, “In its just-filed 10-K, Microsoft introduces a new risk factor that wasn’t there last year: ‘A competing vertically-integrated model, in which a single firm controls both the software and hardware elements of a product, has been successful with certain consumer products such as personal computers, mobile phones and digital music players. We also offer vertically-integrated hardware and software products; however, efforts to compete with the vertically integrated model may increase our cost of sales and reduce operating margins.’
Weisenthal writes, “There’s obviously just one company they could be talking about there.”
Full article here.
MacDailyNews Note: Microsoft’s 10-K also states, in part, “Apple takes an integrated approach to the PC experience and has made inroads in share, particularly in the U.S. and in the consumer segment…. Windows Mobile software and services faces substantial competition from Apple, Nokia, Openwave Systems, Palm, QUALCOMM, Research In Motion, and Symbian.”
Microsoft’s 10-K form is here.
[Thanks to MacDailyNews Reader “John H.” for the heads up.]