With both “earnings and revenue down, [Microsoft] has got to make some changes. Microsoft Chief Steve Ballmer’s excuse for this decline seems to be the difficulties of the recession,” John C. for MarketWatch. “So why doesn’t Apple Inc. have these same difficulties?”
Dvorak writes, “It’s time for Microsoft to take the next step in its evolution and build out a branded computer that it can eventually sell in the slated Microsoft stores… Are these [Microsoft] stores going to be clones of CompUSA or Egghead or any other number of failed stores seen in the past?”
MacDailyNews Take: From the looks of them, Microsoft Stores are designed to be to Apple Retail Stores what Windows is to Mac and Zune is to iPod+iTunes: Ill-conceived, poorly-executed bastardizations of Apple products.
Dvorak continues, “The mistake that has been consistently made in the past is trying to be a grocery store where you have a huge variety of things to sell… From the reports so far, this mistake sounds like what Microsoft is going to do. These stores will become the Waterloo for Steve Ballmer. If Microsoft is going to use the grocery store model, then I’d cancel the stores immediately.”
“Microsoft does not need to be servicing a Dell laptop retuned by a customer now blaming Microsoft for its failure,” Dvorak writes. “A failure in this [retail store] venue could be catastrophic for Microsoft. It needs branded hardware to be a success. It’s that simple.”
Full article here.
MacDailyNews Take: The day Microsoft releases a Microsoft PC is the the day Steve Jobs signs strict Mac OS X licensing deals (in which Apple closely approves and certifies the hardware) with HP, Sony, Lenovo, and/or other PC box assemblers (Dell can SIDAGTMBTTS). With $30+ billion in the bank, iPhone, iPod (and maybe even a tablet) Apple could easily afford to take whatever hit to Mac hardware sales would occur with such a move.* The personal computer operating system landscape would change dramatically for the better overnight.
*Apple would retain certain advantages (unibody construction for notebooks, Jonny Ive design, for just two examples) that nobody would be able to match, so the hit to Apple’s Mac hardware business might be less than some might think at first glance.
Business 101. Stick with what you do best and be the best.
Moving to hardware? I dont think so. But if they do they should consider their demographics and do wheel chairs.
Microsoft releasing is own PC and/or Laptop would be the end to Windows OEM PC Box builders, as the abandon Microsoft. Some would go to a generic UNIX/Linux and then build their Own Custom UI. Other would toss the door wide open for Google’s Chrome OS to walk right in an kick OEM Windows to the Curb.
Enterprise would also start to move away from Windows as the OEM’s move to another OS.
Who in their right mind would take a hit whore like Dvorak home to mama.
Wrong Mr. Deborass. MS should spend every single bit of dollars they have now and build the exact number of Apple stores to counter. Spend it all Ballmer, you can do it.
The “desktop PC” is already dead. Sure, some corporate/enterprise sales will continue, but the much bigger profitable segment from future consumer electronic sales will not come from a deadtop box.
I just bought Snow Leopard at an Apple Store. I like the Apple Store. I played Sims on an iPhone, checked email and created an ugly desktop for the computer using PhotoBooth, and nobody hassled me, but when I wanted to check out, there was an assistant right there to get me on my way. Somehow I imaging the MS store experience going down a whole different avenue.
I know its old news – but it still fits.
http://notnews.today.com/2009/01/24/microsoft-uk-launches-msn-musicturd-service/microsoft-zune-anus-logo/
I love you John C Dvorak!
It’s already happened. I posted on another article about last nights’ episode of ’30 Rock’. There was a guy using a black laptop with a white Windows logo on it. Honest.
MS has made some amazing hardware, including hardware that was the best in the entire market. The hardware? The Sidewinder joysticks and gamepads. Amazing design, sturdy, reliable (I should know; mine got chucked across the room. Thanks, Wing Commander).
Oh, wait…they killed that line and introduced the Xbox with the Rocky controller for people with gorilla hands.
Oops, my bad.
well, that’s possible because MS has wasted so much money for doing nothing. they still have so much left money whatever they want. but if they make their own brand PC, I will be interested or buy it. I guess that design will be just cool like zune HD with lower price. I can see easily see their future what if they would make.
Apple should continue with the current no licensing of Mac OS X model until Mac market share reaches about 25%. At that point, Apple can consider if selling Mac OS X licenses (presumably to a larger audience) will be more profitable than selling Mac hardware with exclusive Mac OS X. Yes, it may be possible to continue selling Mac hardware while licensing Mac OS X to others. But that’s what Apple tried to do before, and it was disastrous.
As long Apple sells Mac and Mac OS X together, Apple’s competition is HP, Dell, Acer, Toshiba, and the rest of the crowd. Apple’s true competition is NOT Microsoft. As soon as Apple starts licensing Mac OS X, the current competitors become partners and Microsoft becomes the competition.
So, in my opinion, on the day Apple decides to license Mac OS X (if it ever happens), Apple needs to do it in a big way. If Steve Jobs is calling the shots, I know it will be a huge move, not some half-assed “you sell the low end and we sell the high end” scheme; it won’t be a compromised “play it safe” attempt like last time. It will be a radical change, like the change from PowerPC to Intel, only bigger.
And that’s exactly why Microsoft might actually do what Dvorak suggests, because unlike Apple, Microsoft does make compromised decisions and half-assed attempts. They did it before with music players, where they turned former partners into competitors while still pretending to be good partners. And that move destroyed most of the iPod’s competition. Now they are thinking about doing the same thing with mobile phones.
This
“Dvorak writes, “It’s time for Microsoft to take the next step in its evolution “
Should really say this:
Dvorak writes, “It’s time for Microsoft to take the next step in its emulation ”
It’s absolutely sickening how Apple is Microsoft’s R&D;source and how Microsoft, with over 90% world wide market share HAS TO COPY ALMOST EVERY THING APPLE DOES!!!
No. Apple will never license OSX to anyone. It don’t need to.
So who’s gonna design these Microsoft PC’s? Clarabell the Clown?
It would be easy for Microsoft to get into PC hardware manufacturing. They can acquire Dell. It would be a better deal for Dell than MS, and would give Michael Dell an exit strategy.
Looks like Zune-Boy is off his meds again….
Such hostility! Why is This Village Idiot here instead of hanging out with his peers?
If that’s not a sign of mental illness, I don’t know what is- nice life, Tang-O! Having fun yet?
(Either a “yes” or “no” is incriminating..)
Microsoft’s entire concept of a store is stupid. They already have enough product exposure. Apple opened their stores so they could dedicate the customer’s time to seeing Apple solutions sold by a staff that could evangelize the Apple products.To come out with PCs with the Microsoft would just put them in conflict with their biggest customers .. their OEMs.
Dvorak sees the decline, but not the cause. Microsoft today reported a loss of 39% of licensing revenues, and yet a drop of 52% in licensing earnings, too large a discrepancy to blame on economies of scale. In other words, clients are fleeing msft’s mostly-profit licenses, the source that funds all the bad ideas and evil crimes committed by this company. They can’t replace that fountain of free money with proceeds from low-profit hardware sales. microsoft is rotting and they don’t know how to actually create anything. Their leadership has always been unimaginative and technologically illiterate.
@ken1w:
I don’t think it will be about market share being around 25%. It will be when the profits from the Mac division are sufficiently low as a proportion of the overall profit.
IOW when the revenue from other sources – iPhone, iTunes and whatever else comes down the track, is stable and sufficient to hold the company up whilst it takes the hit from lower profits on licensing.
Even then I think they will be very selective in who they allow to license OSX
Won’t happen. They’d be respnsible for both hard- and software and have no one else to blame. The symbiosis windows and pc vendors is perfect for them; neither one needs to take full responsiblity for customer frustration. Most customers can’t even pinpoint the blame. The result is frustration and what will ultimately bring down the two.
Microsoft would never create its own PC.
To do so would alienate all its customers, and the customers would be forced to create their own LINUX machines. HP, Dell, Lenovo, etc… would roll out Linux optimized hardware, or maybe try some Tier 9 niche system like Haiku or whatever.
That would be what I’d call “fantastic fragmentation” for Apple.
I can’t wait for Microsoft to release their Windows PC.
The WOW would really start!
“The day Microsoft releases a Microsoft PC is the the day Steve Jobs signs strict Mac OS X licensing deals (in which Apple closely approves and certifies the hardware) with HP, Sony, Lenovo, and/or other PC box assemblers”
When are you going to get this, instead of rambling on forever in Enderle-esque ingorant bliss: Apple will not, repeat NOT!, license OSX. Not willingly. Just do the numbers. What would they do it for? “Market share”? Of what? Number of OS:es? I think they’ll continue to set their sights on market share in profits, where they do excellently, thank you very much. They have more CASH than most competitiors MARKET CAP fer chrissakes! Why would they risk this to sell more 29.99 copies of OSX while losing 999 iMac sales? To look better in a OS statistics column somewhere? Get over this. Give it up. Get real.
Correction to my earlier message, 5 posts north of this one. Should read: Microsoft today reported a loss of 39% of WINDOWS revenues, and yet a drop of 52% in WINDOWS earnings…. Thus the conclusion their licensing business is drooping. Such a trend would have profound implications for msft profitability.
“Steve Jobs signs strict Mac OS X licensing deals (in which Apple closely approves and certifies the hardware) with HP, Sony, Lenovo, and/or other PC box assemblers (Dell can SIDAGTMBTTS). With $30+ billion in the bank, iPhone, iPod (and maybe even a tablet) Apple could easily afford to take whatever hit to Mac hardware sales would occur with such a move.* The personal computer operating system landscape would change dramatically for the better overnight.”
I had to read that twice to believe it. What’s with the drug-induced MDN take?
The sole reason, the SOLE reason Apple’s Mac business is thriving (in a recession!) is because of its differentiation. OS X tied to the hardware.
Strict licensing deals?? What?? Apple can barely keep tabs on stupid Nvidia, and you can bet that dictating terms to AT&T;isn’t child’s play. Microsoft can barely control its partners (hence, its horrible business model), who are all jockeying for the bottom end . . . because they have NO WAY to differentiate themselves. And Apple is going to be able to dictate terms to these unimaginative, generic, also-ran box-makers? Sony is NOT Apple. Lenovo (ugh!) is NOT Apple. The only way Apple can assure quality control is to either stick with a single manufacturer (Intel) or buy Sony, Lenovo, and anyone else it wants to sign these “strict” fantasy-like licensing deals with.
Playing on the exact same field as MS is a losing proposition. OS X will become a Windows clone, and there goes any and everything that makes OS X desirable. Right out the window.
And what’s more, in light of Apple’s ridiculous success (in a recession!) with its current model (recession proof!), why on earth would anyone want to change it?? In fact, the rest of the industry is doing all they can to emulate Apple!
What, Sony and Lenovo are going to come out with a special “premium” OS X line?? Dream on. IT’S STILL NOT A MAC.
This universal licensing garbage has been tried before and it failed. It will fail again, now more than ever, since differentiation, brand power, and the benefits of ruling the Premium market are today’s keys to success.
And MS can never create its own PC. To late for that, unless it wants to completely destroy its relationship with the box-makers. HP, Lenovo and the rest are already fighting for the bottom-end, so now you think they’ll also be able to eat a drop in unit sales?? Volume sales is all these companies have now. So will that make them run crying to Apple? They most certainly can try. But Apple would be dumb to take them.
What an absolutely senseless MDN take. Really out of character.