CNNMoney: Microsoft is a dying consumer brand

Apple Online StoreDavid Goldman reports for CNNMoney, “Consumers have turned their backs on Microsoft. A company that once symbolized the future is now living in the past.”

MacDailyNews Take: Microsoft never symbolized the future to anyone who even partially understood what they were witnessing. Microsoft symbolized “oh, look, I can get something that I delude myself is close to a Mac because I’m too cheap and/or ignorant to get the real thing.”

Goldman continues, “Microsoft has been late to the game in crucial modern technologies like mobile, search, media, gaming and tablets. It has even fallen behind in Web browsing, a market it once ruled with an iron fist.”

MacDailyNews Take: Illegally.

Goldman continues, “It’s not like Microsoft didn’t foresee the changes ahead. With a staff of almost 90,000, the company has many of the tech world’s smartest minds on its payroll, and has incubated projects in a wide range of fields that later took off.”

MacDailyNews Take: We, of all people, could run the company better than Ballmer with 1/10th the staff. Imagine what a real CEO could do. (May Ballmer remain Microsoft CEO for as long as it takes!)

Goldman continues, “Experiments like Courier (tablets), HailStorm/Passport (digital identity), and Windows Media Center (content in the cloud) show the company was ahead of the game in many areas — but then it either failed to bring those products to market, or didn’t execute.”

MacDailyNews Take: Courier was total vapor intended to distract from Apple’s real tablet. Obviously, it worked for the easily distracted. That Goldman includes it as an example of being “ahead of the game” is a joke and ought to be embarrassing to him. Ignorance is bliss.

Goldman continues, “‘In this age, the race really is to the swift. You cannot afford to be an hour late or a dollar short,” says Laura DiDio, principal analyst at ITIC. “Now the biggest question is: Can they make it in the 21st century and compete with Google and Apple?’ Some influential analysts think not. Several have downgraded Microsoft’s stock in recent weeks, as PC sales continue to slow and Microsoft struggles with its tablet strategy. The company’s stock is down more than 17% this year.”

“As Apple has proven, success in consumer products can fuel explosive growth. Apple surpassed Microsoft’s market value earlier this year, and is on pace to eclipse the company in sales for 2010,” Goldman reports. “And if Microsoft cedes consumer ground, it risks its enterprise stronghold. Businesses are becoming more willing to allow employees to use their personal devices for work purposes, and a growing number of those gizmos are Macs, iPads, [and] iPhones…”

Full article here.

MacDailyNews Take: It’s telling that even people who are as confused about what Microsoft was/is as Goldman are beginning to see the end. People are finally waking up. The one true innovator will win the war, not the bloated, slow-footed imitator whose only real “win” came when Apple was being run (into the ground) by incompetents.

124 Comments

  1. Tech coach potatos are slow to see the future while watching information on the next article on that HD boob-tube. Yet, they finally absorb the information through some magical method or by realizing their articles are not coming true. What ever the reason, they seem stunned as the screen turns blue on their computer and the TV goes black as their high carb food runs out!

  2. Tech coach potatos are slow to see the future while watching information on the next article on that HD boob-tube. Yet, they finally absorb the information through some magical method or by realizing their articles are not coming true. What ever the reason, they seem stunned as the screen turns blue on their computer and the TV goes black as their high carb food runs out!

  3. Ned, You don’t believe a Dell or HP running Linux can service that market? I fully agree with you that Apple has not (and OUGHT not) serviced to low-budget portion of the desktop market, but that segment is shrinking and shifting. The iPad is eating into some of it and the Linux crowd into more. Between them, they should be able to reduce Windows to a bit player.
    Apple doesn’t WANT a big chunk of the low-profit sub-$999 market. Look at the mini … all the Mac that could fit into the case designed for the AppleTV! An afterthought!

  4. Ned, You don’t believe a Dell or HP running Linux can service that market? I fully agree with you that Apple has not (and OUGHT not) serviced to low-budget portion of the desktop market, but that segment is shrinking and shifting. The iPad is eating into some of it and the Linux crowd into more. Between them, they should be able to reduce Windows to a bit player.
    Apple doesn’t WANT a big chunk of the low-profit sub-$999 market. Look at the mini … all the Mac that could fit into the case designed for the AppleTV! An afterthought!

  5. …”I seem to remember something about microsoft loaning/investing in a dying company some years ago called “Apple”. At the time this Apple company was about to go under and needed cash.”

    I don’t think anyone believes MS and Apple had quite reversed their position from the late 90’s yet, but when they do, perhaps Apple’s $150M (adjusted for inflation at that point) could help MS sustain their buisnes until they find a replacement CEO who will know what he’s doing. Actually, this may end up happening when Ballmer decides to retire (once his youngest is done with college).

    Let’s not forget, though, Microsoft’s $150M investment in Apple stock (back in 1997) was a symbolic 5% worth, and they eventually sold it all (many years ago, at hefty profit, of course). More significant moment that arguably saved Mac was MS’s commitment to continue development of MS Office for Mac for the next five years.

  6. …”I seem to remember something about microsoft loaning/investing in a dying company some years ago called “Apple”. At the time this Apple company was about to go under and needed cash.”

    I don’t think anyone believes MS and Apple had quite reversed their position from the late 90’s yet, but when they do, perhaps Apple’s $150M (adjusted for inflation at that point) could help MS sustain their buisnes until they find a replacement CEO who will know what he’s doing. Actually, this may end up happening when Ballmer decides to retire (once his youngest is done with college).

    Let’s not forget, though, Microsoft’s $150M investment in Apple stock (back in 1997) was a symbolic 5% worth, and they eventually sold it all (many years ago, at hefty profit, of course). More significant moment that arguably saved Mac was MS’s commitment to continue development of MS Office for Mac for the next five years.

  7. Ned: spot on!
    I support a company of 60k+ employees. It’s easy to see trends if others rather than my own. MS is going no where! Apple is simply growing. A new generation can afford something different. Some may say better. Better for whom? If you’re tech (and can fix your own issues) MS is a fine alternative. Make no mistake, vmfusion is one of their hottest selling apps. And so for a reason.

  8. Ned: spot on!
    I support a company of 60k+ employees. It’s easy to see trends if others rather than my own. MS is going no where! Apple is simply growing. A new generation can afford something different. Some may say better. Better for whom? If you’re tech (and can fix your own issues) MS is a fine alternative. Make no mistake, vmfusion is one of their hottest selling apps. And so for a reason.

  9. @Ned
    “… there still is a segment of the population that can’t afford Apple products. They can get a Dell for $400 with a monitor. True it will suck, but they can still get connected to the internet and work with their digital photos. Until Apple can figure out how to service that market, …”

    Ned, perhaps you haven’t heard of an obscure, new gizmo from Apple, that a few people have taken to, called,
    the “iPad”?

  10. @Ned
    “… there still is a segment of the population that can’t afford Apple products. They can get a Dell for $400 with a monitor. True it will suck, but they can still get connected to the internet and work with their digital photos. Until Apple can figure out how to service that market, …”

    Ned, perhaps you haven’t heard of an obscure, new gizmo from Apple, that a few people have taken to, called,
    the “iPad”?

  11. @Ned

    This is true. I’ve always said for years the reason that companies like Dell and Microsoft succeed is because people will always settle for less as long as it costs less. The difference between having a crappy computer and having NO computer is huge.

  12. @Ned

    This is true. I’ve always said for years the reason that companies like Dell and Microsoft succeed is because people will always settle for less as long as it costs less. The difference between having a crappy computer and having NO computer is huge.

  13. @NHL But you need a computer to update, sync, etc. your iPad, so it is not truly a laptop replacement. Until the iPad can do all this without the need for another computer, then it is not truly a laptop replacement.

  14. @NHL But you need a computer to update, sync, etc. your iPad, so it is not truly a laptop replacement. Until the iPad can do all this without the need for another computer, then it is not truly a laptop replacement.

  15. @NHL,

    Yes, I have heards of the iPAD. In fact, I own one and love it. My entire home is full of Apple products. I cut my teeth as a programmer on an Apple IIe when I was 8 years old.

    At $499 the iPad is still more expensive than a cheap Dell. For us Apple fans, that may not matter as we do tend to have more disposable income. However, there are those for whom that extra $99 or more makes a huge difference. It is true the Apple may never service that market and that is fine. Their financials indicate they have and continue to make the right strategic decisions. My point is that by not offering a product to those folks, a viable market segment remains open for Microsoft (or possibly Linux) and thus Microsoft may be around for sometime all be it in a dimished state.

  16. @NHL,

    Yes, I have heards of the iPAD. In fact, I own one and love it. My entire home is full of Apple products. I cut my teeth as a programmer on an Apple IIe when I was 8 years old.

    At $499 the iPad is still more expensive than a cheap Dell. For us Apple fans, that may not matter as we do tend to have more disposable income. However, there are those for whom that extra $99 or more makes a huge difference. It is true the Apple may never service that market and that is fine. Their financials indicate they have and continue to make the right strategic decisions. My point is that by not offering a product to those folks, a viable market segment remains open for Microsoft (or possibly Linux) and thus Microsoft may be around for sometime all be it in a dimished state.

  17. Well I think Apple somewhat trying to save Microsoft by mentioning Mac Office 2011 at the October Apple Event. Microsoft has not been truly innovative. That tabletop touchscreen computer that’s was running off a Core Duo 2 or for Mac users a Mac mini doesn’t count because it was $15,000. It seems Microsoft abandoned that already like WebTV, Zune, MSN Direct plus more. People are tired of being suckered in by Microsoft. This is why I wonder why they even would dare to open a Microsoft Store especially at Mall America across from the Apple Store. Microsoft needs to be original actually stop fighting Apple and support them more. If Steve Balmers wasn’t such a idiot he should had Office on iPhone in 2008 and iPad this year. What CEO takes over after Ballmers is going to see ALL his mistakes and make better business decisions.

  18. Well I think Apple somewhat trying to save Microsoft by mentioning Mac Office 2011 at the October Apple Event. Microsoft has not been truly innovative. That tabletop touchscreen computer that’s was running off a Core Duo 2 or for Mac users a Mac mini doesn’t count because it was $15,000. It seems Microsoft abandoned that already like WebTV, Zune, MSN Direct plus more. People are tired of being suckered in by Microsoft. This is why I wonder why they even would dare to open a Microsoft Store especially at Mall America across from the Apple Store. Microsoft needs to be original actually stop fighting Apple and support them more. If Steve Balmers wasn’t such a idiot he should had Office on iPhone in 2008 and iPad this year. What CEO takes over after Ballmers is going to see ALL his mistakes and make better business decisions.

  19. Next big event will be the day Google passes Microsoft in market cap, which is swiftly approaching. When that occurs MSFT stock will fall big time and Ballmer will be ousted.

    In five years time when Windows revenue has dried up their loss leader divisions such as XBox will be either sold off or scrapped. They will be like a bigger version of Sega, writing apps for other peoples’ platforms.

    The rot set in back in 99-2000. It just took the world a while to notice.

  20. Next big event will be the day Google passes Microsoft in market cap, which is swiftly approaching. When that occurs MSFT stock will fall big time and Ballmer will be ousted.

    In five years time when Windows revenue has dried up their loss leader divisions such as XBox will be either sold off or scrapped. They will be like a bigger version of Sega, writing apps for other peoples’ platforms.

    The rot set in back in 99-2000. It just took the world a while to notice.

  21. One accurate statement here is that ms has many of the tech world’s smartest minds on the payroll. However, within the tech world, ms is famous for not letting those minds have any influence or even do anything.

    I wish CNN wouldn’t post these articles. Msft stockholders might see them and demand new management.

  22. One accurate statement here is that ms has many of the tech world’s smartest minds on the payroll. However, within the tech world, ms is famous for not letting those minds have any influence or even do anything.

    I wish CNN wouldn’t post these articles. Msft stockholders might see them and demand new management.

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