“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.]
The next generation’s product of choice… the think?
You bet!
I went Mac last generation, in 1984 and have been a happy user ever since.
duh.
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They see the writing on the wall.
Gartner? Puh-leez, Windows may hold some 90% of the worldwide PC market, but I would be very surprised if legitimate copies of Windows made up even 2/3 of that amount.
That should be “…realize that they are the next generation’s product of choice.'”
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.
Ballmer is those ads’ biggest proponents?
As in FATTEST?
Let’s not forget that, ultimately, it’s Microsoft’s crappy software that threatens the company’s future, not Apple’s advertising.
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“Apple .. could be the next generation’s product of choice.”
Yeah, the kids are alright.
.:.
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 $15 each is what you pay for each…
… and EXACTLY what they’re worth
Uh….what’s going on with MobileMe?
Updates?
Upgrades?
Upchucks?
Once you go Mac…
Three obvious typos: “…Microsoft’s new ads seem as spasmodic and mancunian as its current figurehead and one of their biggest problems, Chief Executive Steve Ballmer.”
It’s like falling in slow motion. You see it happening, but there’s nothing you can do about it
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People in general are actually getting more stupid, from what I see on TV and in the media- however, you don’t have to be brilliant to feel more comfortable in Mac- World.
Next Apple “Get a Mac” ad… PC is dressed in hip new clothes that looks like Mac’s, but maybe a bit too overdone and “trying too hard to impress.” Mac compliments PC on his new look. PC says something about Windows 7. Then, a part of the new wardrobe falls off. It is revealed that under the new clothes, PC is still wearing his beige suit and brown tie.
The slower and more agonizing of a death, the better…
better yet, put all the Mafia$oft goons in jail and give the investors their money back.
@ken1w
I’d LOVE to see that commercial.
@ ken1w – Brilliant! I hope Apple uses that idea, as it expertly illustrates Windows’ continued lipstick-on-a-pig problem.
(…just as long as PC doesn’t undergo a Janet Jackson-style “wardrobe malfunction”…)
I have news for you MAC fangirls. The only people who are clearly threatened are MAC and their misguided cult of smug users. It must suck to have no games or market share with the Windows 7 juggernaut bearing down on you.
Even worse for you MAC dorks are Microsoft’s commercials with that cute as a button little girl and her delightful slideshow featuring critics raving about fabulous Windows 7. Those spots are kicking MAC’s ass! How do you answer that, MAC? You can’t. I’d be threatened too.
Your potential. Our passion.™
@ken1w
That’s a truly inspired idea! You should be in the ad business.
@Gabriel
That was an interesting, thoughtful comment. Who knew you could still find those on MDN?
What if Apple releases the new iMac’s couple of days before W7 and Snow Leopard runs 30% faster than W7 in it, thanks to Grand Central.
Party on MS. Hilarious! Do they wear party hats and blow? – noise makers.