Microsoft ‘clearly threatened’ by Apple’s ‘Get a Mac’ ads

“Despite holding more than 90% the operating system market and limiting Apple’s share of the PC market to 8.7%, according to Gartner, Microsoft outspent Apple’s $214 million ad budget for the same period and doubled its rival’s TV spending in the last two quarters,” Jason Notte reports for TheStreet.com. “Months later, the question of ‘why’ remains.”

Notte reports, “Microsoft’s latest array of ads displaced a short-running, ill-received campaign featuring former Chairman Bill Gates palling around with Jerry Seinfeld. It was Gates’ last turn as the public face of Microsoft… Microsoft’s new ads seem as sporadic and mercurial as its current figurehead and one of their biggest proponents, Chief Executive Steve Ballmer.”

Notte reports, “Nor is it helping the company’s revenue or market footing. Microsoft’s revenue dipped 17% in its fiscal fourth quarter from a year earlier, including a 29% drop in Windows revenue based on ‘PC market weakness.’ Revenue was down 3% with Windows sales off 13%. The lost $2 billion was roughly what Adobe paid for Omniture. Apple, meanwhile, saw its global revenue jump 12% last quarter despite an 8% drop in computer sales.”

Notte reports, “‘Clearly, they’re threatened by it,’ Andrew Graff, CEO of Watertown, Mass.-based ad firm Allen & Gerritsen, says. ‘You would think that, as such a dominant leader, they wouldn’t need to fight back, but I think they look at what Apple’s doing and realize that they could be the next generation’s product of choice.'”

Full article here.

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

49 Comments

  1. The reason they’re so threatened is that their business model requires that Windows destroy or marginalize any other options or choices – they can’t coexist with alternatives and still make enough money.

    Which is, incidentally, a theme running through the Mac vs. PC ads – Mac has no problem coexisting with PC, but PC doesn’t want to coexist with Mac or acknowledge him as a viable alternative.

    This is reflective of the reality that Apple has no trouble keeping Macs profitable, even with only a slice of the overall personal computer market. While Microsoft must keep everyone using Windows in order to be able to force OEMs to pay up for every PC sold. Otherwise, Microsoft’s leverage is gone, and it’ll be the PC makers with power in that relationship.

  2. Let’s not forget that, ultimately, it’s Microsoft’s crappy software that threatens the company’s future, not Apple’s advertising. ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

  3. Apple products are this AND the next generations’ products of choice.

    @TommyBoy…
    No kidding. i have lots of friends in Bulgaria and they all have home-built (as in a shop on the corner) PCs running pirated software.

    There’s a street in Sofia where you flip through 3-ring binders with Xeroxed software box covers. Point at the ones you want and come back in 1/2 hour. Windows ultimate and AutoCAD for $15 each is what you pay for each…
    … and EXACTLY what they’re worth

  4. It’s like falling in slow motion. You see it happening, but there’s nothing you can do about it ” width=”19″ height=”19″ alt=”smile” style=”border:0;” />

Reader Feedback

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