Microsoft acknowledges the Apple threat in SEC filing

Microsoft acknowledges the Apple threat in SEC filing

Summary: In their mandatory 10-Q filing with the US Securities and Exchange Commission for 2008 Microsoft acknowledges Apple's success, but without mentioning them by name.A competing vertically-integrated model, in which a single firm controls both the software and hardware elements of a product, has been successful with certain consumer products such as personal computers, mobile phones and digital music players.

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In their mandatory 10-Q filing with the US Securities and Exchange Commission for 2008 Microsoft acknowledges Apple's success, but without mentioning them by name.

A competing vertically-integrated model, in which a single firm controls both the software and hardware elements of a product, has been successful with certain consumer products such as personal computers, mobile phones and digital music players.

Microsoft does, however, mention that it has two "vertically-integrated" products (the Xbox 360 and  Zune) but that producing more may "increase [its] cost of sales" and "reduce operating margins."

(Tip: AppleInsider)

Topics: Microsoft, Apple, Hardware, Mobility

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14 comments
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  • Does this really justify its own dedicated post?

    I feel like there should've at least been some further information or analysis to go with it.....

    Just thinking aloud.
    theoxygenthief
  • Problems vs. Opportunity

    Every Mac buyer is a potential customer of Office 2008. I
    don't recall that Apple hung a "No Microsoft" sign on the
    iPhone App Store.

    Microsoft bought THE software for running Windows on
    Mac and walked away from the Mac market at the Intel
    switch. Two companies have moved in (and Sun's
    VirtualBox is Mac native) and seem to be doing okay.
    Microsoft also walked away from the Mac browser market.

    What does this say about Microsoft's real feelings about
    cloud clients who run other operating systems?

    Does it really so befuddle Microsoft when they see other
    people profitably selling to Windows users without
    controlling the operating system?
    DannyO_0x98
  • And if Apple were honest...

    ... they would mention Microsoft in their filing as their target market.
    Confused by religion
    • Not sure about that...

      On the face of it you'd think so wouldn't you? However how
      about this Ms is not Apple's target market what Apple's
      target Market is.... is to convince others (Most of whom
      happen to be MS customers) that doing things "The Apple
      Way" is the better option. However I don't think Apple feels a
      need to emulate MS in this.

      Pagan jim
      James Quinn
  • Microsoft-made Windows Mobile Phone

    With the predominantly crappy Windows Mobile phones on the market, I would think a Microsoft-made phone would be a logical thing.

    Certainly some of the bugs are software-related, but in many cases it's hardware bugs or a poorly integrated ROM image that causes glitches.

    Even if people wouldn't agree that a phone would be a good idea, it is weird that Microsoft's only hardware contribution (aside from the zune and xbox) is a mouse and keyboard.

    It really shows they can't think outside the box. They're suck in a "software" company mentality and don't see themselves as a "technology" company.
    croberts
    • Not that strange

      A cardiologist is perfectly aware of how the central nervous system works, but does not operate on the brain. For good reason.
      laura.b
      • but...

        a cardiologist operates in an environment with increasing specialization. whereas Microsoft operates in an environment with decreasing specialization(diversification). The seem to be recognizing this fact. Apple certainly has.
        isulzer
        • Not the point

          I didn't make any claims as to what they should be doing, only that it is not at all strange that they do what they do now.
          laura.b
    • I assume you meant "stuck"....:P

      However the missed "T" is priceless for it makes the
      sentence that much funnier.

      Now you get what I like about Apple and you might be
      right if MS produced it's own phone made specifically to
      use it's phone OS a better product is likely to happen.
      How do I know this? Because that is what Apple has been
      doing for years now and it's the primary reason I choose
      Apple over others it's the control of all the pieces to make
      the better whole.

      Pagan jim
      James Quinn
  • RE: Microsoft acknowledges the Apple threat in SEC filing

    Microsoft should move beyond trying to defeat Apple, to
    trying to providing better products for consumer market.
    And not try to "imitate" or "emulate" whatsoever its competitors are trying to do. It should try to create an
    identity of its own (not that it doesn't have one; what I
    mean is that it should try to differentiate itself from its
    competitors) just like how Apple gained a foothold in the
    computer space by introducing products that triggered a
    revolution, not solely because of their design but because
    of the quality and stability they offer the users.

    Sometimes, it's more of how we look into ourselves, and
    less of comparing ourselves to others. XD
    Erred
  • Isn't there anything better to blog about?

    Just another standard SEC filing, not unlike most others in the industry, Apple's included.

    So what was the point?
    AllKnowingAllSeeing
    • Well.....

      There has always been two worlds or three if you count Dell.
      MS, Dell and Apple. Now Market Share has always been the
      club to use to point out just how BIG MS is. Same for Dell
      but to a lesser extent and that same Market Share has
      constantly been used to point out how "small" Apple is. So
      when the famed GIANT takes time to point out the insect it
      would seem to point to a sea change of sorts.

      Pagan jim
      James Quinn
  • RE: Microsoft acknowledges the Apple threat in SEC filing

    Lame. Every competitor should be seen as a threat when your a for-profit business. Nothing new here.
    Loverock Davidson
  • RE: Microsoft acknowledges the Apple threat in SEC filing

    Vertical integration is sensible. Making a
    compromise OS for every Tom or Dick or Crap
    computer brand and multiple combos of cards and
    so forth is never going to work and has not
    worked heretofore. Just think how often you are
    driving and see on the side of the road with the
    hood up some dope with his muscle car with
    expandomatic injectors and double brekafrex
    mods to his engine stuck and dead in the water.
    This is just the same as guys who without real
    engineering knowledge mix and match
    components to make their wonderful fluorescently
    accented dumb super mod computers. Putting
    engineers to work to design both the software and
    integrate it with matched components is the way to
    get compatibility. Just imagine if you were to take
    a plane in which the parts were not integrated
    vertically by the manufacturer..You know, let's get
    the navigation from Frank and the engines from,
    whathisname and maybe the landing gear mod
    from Joe...Spare me...It is the same..No wonder
    Micro is finally starting to see some awareness in
    the population who had been snowed by the early
    so called IBM clones that somehow they have a
    business machine unlike that silly Apple toy...Well,
    I say that they took the wrong road and some are
    starting to find that the other guy gives them
    everything smoothly integrated and fully and
    always functional. No wonder Micro is
    worried..they ought to be and it is going to get
    worse as those ipod users start to buy serious
    hardware/software integrated by Apple for their
    burgeoning new business ideas as they mature
    into a future market.
    nfiertel