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. @Ned,

    Yup, the 400 dollar market is a tough one. But, get an iPad for $499 and you have a portable computer capable of most task that one would use. It is fully capable of over seven hours of battery life, fits in the hand, travels to any place in the world, can log into remotely to a PC/Mac, and can do documents. Hey did I mention games, CAD, finance, Internet, books, and many other of the 300k apps.

    Hey, portable, cheap, sturdy, and if bored-watch Netflix, ABC, public Tv or make a phone call. Yea,

    Apple has not figured out that 400 dollar market yet-but they nail the 499 and above market that fits in your hand.

  2. @Ned,

    Yup, the 400 dollar market is a tough one. But, get an iPad for $499 and you have a portable computer capable of most task that one would use. It is fully capable of over seven hours of battery life, fits in the hand, travels to any place in the world, can log into remotely to a PC/Mac, and can do documents. Hey did I mention games, CAD, finance, Internet, books, and many other of the 300k apps.

    Hey, portable, cheap, sturdy, and if bored-watch Netflix, ABC, public Tv or make a phone call. Yea,

    Apple has not figured out that 400 dollar market yet-but they nail the 499 and above market that fits in your hand.

  3. @Ned
    You have a valid point about accessibility to cheap PCs. Companies that make those products have to sell lots of boxes to make money. Dell are in trouble now because someone is doing better than them and are hitting their market share.
    There will always be a cheap market set for any product.
    Apple will not go into that market. They have even said why (quality being the main issue). So they have introduced the iPad which is a huge hit and is apparently taking a lot from the cheap portable PC market.
    Apple could make cheap PCs but why do so when you have the skill set to make higher value products that make more per unit. When Apple run out of ideas then they’ll go the cheap route. Let’s hope that never happens!!

  4. @Ned
    You have a valid point about accessibility to cheap PCs. Companies that make those products have to sell lots of boxes to make money. Dell are in trouble now because someone is doing better than them and are hitting their market share.
    There will always be a cheap market set for any product.
    Apple will not go into that market. They have even said why (quality being the main issue). So they have introduced the iPad which is a huge hit and is apparently taking a lot from the cheap portable PC market.
    Apple could make cheap PCs but why do so when you have the skill set to make higher value products that make more per unit. When Apple run out of ideas then they’ll go the cheap route. Let’s hope that never happens!!

  5. OMG! We could be hearing “beleagured Microsoft” for the next ten years the moment it occurs to MDN that they can say that now.

    You know what would be more arrogant than that? If Mrs Gates’s little boy Billy decides to copy Jobs and return to save Microsoft!

    Ugh, I just threw up in my mouth a little.

  6. OMG! We could be hearing “beleagured Microsoft” for the next ten years the moment it occurs to MDN that they can say that now.

    You know what would be more arrogant than that? If Mrs Gates’s little boy Billy decides to copy Jobs and return to save Microsoft!

    Ugh, I just threw up in my mouth a little.

  7. @Ned,
    I can’t *afford* Apple products… which is precisely why I won’t do without them. I not only value my limited resources, I value my time, my sanity and my productivity — all the more so when my resources are limited.

    Things like TCO and productive time become very important factors to those whose resources are limited. My wife and I are freelancers who donate the majority of our time to non-profit work, rather than going after high-paying clients. I would love a PowerBook — but I love my iPad at one third the price. My wife uses a three year-old white iMac. I make due with second-hand machines (currently a dual 2.5 G5 PowerMac with two older monitors).

    Where there is a will there is a way. I would never trade my five or six year-old second-hand PowerMac for a new Dell, no matter how much you paid me. My PowerMac is on 24/7 every day of the year and I have spent zero time and money on it.

  8. @Ned,
    I can’t *afford* Apple products… which is precisely why I won’t do without them. I not only value my limited resources, I value my time, my sanity and my productivity — all the more so when my resources are limited.

    Things like TCO and productive time become very important factors to those whose resources are limited. My wife and I are freelancers who donate the majority of our time to non-profit work, rather than going after high-paying clients. I would love a PowerBook — but I love my iPad at one third the price. My wife uses a three year-old white iMac. I make due with second-hand machines (currently a dual 2.5 G5 PowerMac with two older monitors).

    Where there is a will there is a way. I would never trade my five or six year-old second-hand PowerMac for a new Dell, no matter how much you paid me. My PowerMac is on 24/7 every day of the year and I have spent zero time and money on it.

  9. “they can get a Dell for $400 with a monitor.”

    They can also get a used/refurbished Mac for $400 with a monitor. They’ll be able to connect it to the internet and work with their digital photos. And unlike the Dell, it won’t suck. What’s your point?

  10. “they can get a Dell for $400 with a monitor.”

    They can also get a used/refurbished Mac for $400 with a monitor. They’ll be able to connect it to the internet and work with their digital photos. And unlike the Dell, it won’t suck. What’s your point?

  11. Actually, this may end up happening when Ballmer decides to retire (once his youngest is done with college).

    Yeah. Poor Ballmer hasn’t enough billions to tide the family over and at the same time pay for his kid’s degree in oil changes.

  12. Actually, this may end up happening when Ballmer decides to retire (once his youngest is done with college).

    Yeah. Poor Ballmer hasn’t enough billions to tide the family over and at the same time pay for his kid’s degree in oil changes.

  13. @CreditDue

    I think that this would be fine. Adjusted for inflation, let’s get Apple to invest $250 million (chump change) in Microsoft, and commit to produce iTunes and QuickTime for Windows for the next 5 years.

    I think that would be fair, except for the fact that unlike MS’s investment in Apple, Apple would be very likely to lose money on the deal.

    MW:progress – A concept foreign to MSthinking.

  14. @CreditDue

    I think that this would be fine. Adjusted for inflation, let’s get Apple to invest $250 million (chump change) in Microsoft, and commit to produce iTunes and QuickTime for Windows for the next 5 years.

    I think that would be fair, except for the fact that unlike MS’s investment in Apple, Apple would be very likely to lose money on the deal.

    MW:progress – A concept foreign to MSthinking.

  15. Further choice quotes from the source article, emphasis = mine:

    “Windows Phone 7 has promise, but Microsoft dug itself an enormous hole with the subpar Windows Mobile platform. With its market share currently sitting below 5%, developers are taking a “wait and see” approach.”

    “Microsoft’s media platform Zune was dead on arrival.

    “Bing is growing, but substantially all of that growth has come at the expense of its business partner, Yahoo — not its archrival Google.

    “Microsoft’s attempts to build a social network through Windows Live have failed to gain traction. It has no real answer to Facebook.

    And there’s more…

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