ie8 fix

Microsoft flails again

By | May 6, 2011, 9:33am PDT

Summary: The last time Microsoft played the “we’re cheaper” card against Apple, they were still the world’s most valuable tech company. They aren’t now and the “cheaper” card won’t work any better, especially against the iPad.

Microsoft marketing never ceases to amaze. The last time they played the “we’re cheaper” card against Apple, they were still the world’s most valuable tech company. They aren’t now and the “cheaper” card won’t work any better.

Geek site Electronista nails the silliness of Microsoft’s comparisons to Macs. But including the imploding netbook market in the comparison - while ignoring the iPad - is even dumber.

Netbooks are losing against tablets because the text/tweet generation doesn’t need a keyboard. They’re sharing links, videos, music and short text snippets.

Write a complete sentence? Whoa!

And if you do need a keyboard, you probably need more performance and a larger screen.

So it isn’t that the ad’s dishonesty - the legal term of art is puffery - it’s that they’re ignoring the biggest new market in years - because they aren’t in it.

Oops.

The Storage Bits take
Microsoft needs to find its reason for being again. They’ve spent decades chasing the enterprise market and have built a strong position with their server, Office, Exchange and other business products.

In the process they’ve lost their consumer mojo: the focus on the individual’s experience that is central to Apple’s appeal. And Window’s profits force them to keep trying to shore up the traditional PC as the preferred consumer device when its clear that smartphones and tablets are where the market is moving.

The focus on price is ultimately self-defeating (see Wintel’s blue light special) because, obviously, many are willing to pay more to get more: netbooks are 30%-40% cheaper than iPads. How’s that working out?

Prediction: as long as Ballmer is CEO Microsoft will continue its long drift to irrelevance. The sad thing is that Microsoft has the talent and market position to do almost anything. What a waste.

Comments welcome, of course. My favorite “comparison” from the MS page: calling the HP Pavilion DM3 “unbelievably light” when it weighs over a pound more than MacBook Air. That would make the MBA “supernaturally light”?

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Topics

Robin Harris has been messing with computers for over 30 years and selling and marketing data storage for over 20 in companies large and small.

Disclosure

Robin Harris

Robin Harris is a president of TechnoQWAN, a consulting and analyst firm in northern Arizona. He also writes StorageMojo.com, a blog which accepts advertising from companies in the storage industry, and has a 25 year history with IT vendors. He has many industry contacts, many of whom are friends and all of whom he has opinions about. Robin has relationships with many companies in the technology industry. Every company he writes about may have sought to influence his opinion through carefully-crafted marketing messages and self-serving white papers, gifts ranging from desk calendars, t-shirts, lunches and trips as well as analyst or consulting assignments. He also invests in some technology companies. He may accept payment for services in stock as well. Robin discloses financial investments in or client relationships with companies named in Storage Bits. To help readers sort out the gold from the dross in his writings, Robin tries to communicate his reasons as clearly as he can. If you agree, you are intelligent and discerning. If you disagree, well, you disagree. In all cases, Robin encourages readers to subject everything they read, see or hear on the internet or from politicians to some simple questions: * What assumptions are implicit in the world view and judgments of the author? * What, if any, is the factual basis for the opinions the author expresses? * Is it reasonable, logical and clear? Your critical faculties: use ‘em or lose ‘em!

Biography

Robin Harris

Harris has been messing with computers for over 30 years and selling and marketing data storage for over 20 in companies large and small. He introduced a couple of multi-billion dollar storage products (DLT, the first Fibre Channel array) to market, as well as a many smaller ones. Earlier he spent 10 years marketing servers and networks. After leaving corporate life he founded TechnoQWAN, a consulting and analyst firm. He also developed StorageMojo into one of the top storage industry blogs.

Robin writes, consults, coaches and lives among the mountains of northern Arizona.

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RE: Microsoft flails again
FAULKNE 13th Oct
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long drift to irrelevance?
kinseyman 6th May 2011
Fortune 500 #4th most profitable company in 2010 ...not sure how Microsoft will be drifting to irrelevance with those numbers.
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Microsoft has been dead money for a decade
HollywoodDog 6th May 2011
@kinseyman ... Ballmer has had them sitting still, making embarrassing joke consumer products.

Apple has surpassed them, now makes more money than them.

Ballmer is going to destroy the company to satisfy his ego. He'll show everyone just how important he is - they'll never be able to get rid of him.
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RE: Microsoft flails again
omdguy 6th May 2011
@HollywoodDog

Really? The XBOX 360 is the leading game console, the Kinect set records and is the future of how we interact with our TV and computers (eventually) and the WP7 blows away Android and iOS (IMO as I have used all 3). So what if they dont' have a tablet, I can do what a tablet can do on a phone, or on a cheaper laptop.

Take the Hateraid elsewhere please...
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RE: Microsoft flails again
Rick_K Updated - 7th May 2011
@omdguy
References? From everything I have read the xbox 360 is in the number three position (out of three). The Wii is the number one seller, and in late december the PS 3 passed the xbox in active user base.

There was just this week an article on how Nokia was no longer the top seller in Europe. In fact in Europe the number one selling smart phone is... drumroll? the iPhone 4, followed by the iPhone 3Gs.
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@HollywoodDog
Apple makes more money? So what? How does that even factor in to MS being dead for 10 years?

It doesn't.

Face it; Apple has turned into a highly profitable "gadget" company. Nothing wrong with that but lets have at least enough perspective to talk sane, Microsoft is not a gadget company. The two have diverged enough to no longer be competing directly as they once were.

Apple is now thought to have about 10% of the computer market, admittedly a fantastic achievement for them, a very healthy increase from 2005 which was at about 6.6%. But it the big picture of things; its also very telling in not such a good way.

Lets look at whats happened since just before the 2005 sales figures came out.

First off, Apple became a world renowned gadget company which lifted their public profile into the stratosphere in comparison to the pre-iPod days. They did this skillfully and to what I think all should agree had been to a phenomenally successful degree.

Steve Jobs and his crew have managed to execute a one, two, three punch in the gadget market that we have never got to witness before, iPod, iPhone, iPad. So Apple has had what is nothing less then an absolute coveted luxury in the market place, continued and ongoing renewed positive public interest in his company due to releases of three new products spread over a period of several years. Thats not marketing gold, thats marketing diamond encrusted platinum.

Secondly, they didn't just sit of their clear cut gadget marketing profile laurel's in the hope that the public would notice they make computers too. The produced a series of highly successful commercials by way of the "Apple Guy" to let the public know in a big way they are in the computer market, and the commercials themselves took a direct bullseye aim on Windows, being so critical of Windows that if it hadn't been done in a humerus fashion they would have been considered to be enormously insulting to Windows users from the get go.

Finally, Microsoft, Apples nemesis in the computer market place, had a poorly received entry into the OS market by way of Vista. For Apple, nothing could have worked out more perfectly if they had any ability to kick some very serious butt in the computer market.

But alas, even though Apple has had the perfect storm in their own favor for years now and admitted, on a company level done well to improve computer sales, in the actual marketplace they are still only at about 10% share, its not like they just didn't have room to improve.

Its almost inconceivable as to how much has gone in favor of Apple over the last few years, and admitted again, the vast majority of that due to skillful management of the company. But its hasn't panned out in anything close to the same ratio one would expect in market share.

And the reason is that selling gadgets and selling home and business computers are two different enough things that the public can only be significantly swayed by the aforementioned events if they are making the kind of computers that more then 10%-15% of the public want. And Apple does not. At least not before, and not right now.

And that being the case, it makes Microsoft so far from being dead for so many reasons it simply indicates how far out of touch with even the simple realities of life a person would have to be to say such a thing.

In simple terms; Apple has had every possible advantage in the extreme any company could possibly hope for for years and yet they are still struggling to hit a reasonable share of the computer market.

The only conclusion is that they have done as well as anyone could hope and that is about 10% of the market. Unless they radically change their business model on computer sales the growth in that particular market for Apple will be exceedingly slow and eventually stall out completely, likely well below the 20% mark. And again, that leaves MS a long long way from dead.
  • Flagged
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RE: Microsoft flails again
Rick_K 7th May 2011
@omdguy
The XBOX 360 is the leading game console, the Kinect set records and is the future of how we interact with our TV and computers (eventually) and the WP7 blows away Android and iOS (IMO as I have used all 3).

Any links to prove your assertions? According to the gaming industry publications the Playstation 3 has a half a million more installed users than the xbox 360, and neither one comes close to the Wii. Microsoft may be stuffing the channel with more units, but buyers are taking the Wii and Playstation 3 over the xbox 360. The Kinect is a fad, like the old Nintendo pads in the 80s, Not everyone has the space to use them, and then theres the issue with it recording the end users. WP7SOS is not the best, as it is not consistent on every phone that has it. I have seen a few in the AT&T store that are laggy, and then there is the issue with updates.
At what point do those statements expire? Hmmm?
If MS ends things 50 years from now, do you have bragging rights for your statements now, if you are still alive then?
Yep, that dead money just keeps on spending just like it were live money. What a joke.
Yes, the company with over a billion users, and Climbing, is quicly becoming irrelevant.
Apple has gained some U.S. market, but look at world-wide numbers and Windows still absolutely, without any question owns Apple's arse in the world of computers and this would not change for 20 years if MS quit producing new OSes starting today.
What is Apple's global marketshare for computers again? hmmm?
Remember the ipad is a consumer electronics toy, not unlike a game console. It is not a computer by today's standards.
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Message has been deleted.
xuniL_z Updated - 22nd May 2011
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<i></i>
xuniL_z Updated - 9th May 2011
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Right, doesn't matter what they say anymore
Richard Flude 7th May 2011
Nobody is listening anymore.
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RE: Microsoft flails again
jimmy9200 1st Sep
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Harris flails again
xuniL_z 9th May 2011
Having nothing to write about, he turns to his usual ABM mentality to create a title that is misleading and a blog that has zero substance.
Unless you like hate filled pieces that tell you nothing nor are correct or have any substance.
The ipad and netbooks are 2 totally different products.
It's like comparing an off road motorcycle to a car.
2 different uses and markets.
And unless someone can show me absolute proof, I will continue to believe that the ipad or anything device like it has not replaced the computer for any significant number of people anywhere in the world.
It's a complementary device, a gadget for entertainment. It's consumer electronics gizmo that is completely controlled by it's owner, Apple Corp.
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RE: Microsoft flails again
jimmy9200 14th Sep
@kinseyman Not being able to prove the value of a logic IndexId: go inside the iteration of the body and having to resort to scriptlet code is unacceptable!
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RE: Microsoft flails again
Robin Harris 6th May 2011
1980s IBM is the model: handsome profits from mainframes and proprietary gear while the action moved to minicomputers, LANS and PCs. They've retreated to the enterprise market and are doing quite well.
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But your bias won't let you see anything else?
Bill Pharaoh Updated - 6th May 2011
@Robin Harris
From what I see they are focusing once again on the consumer market, yet Apple flailing in the Enterprise market (hows that working out for them, Hmm?) with no signs they feel the need to chase that should consumer spending start to drop a bit.

It sure looks like iOS profits are forcing Apple to abandon the tration Mac markets, yet they still try to shore that up by adding new CPUs, ect.

So what was your point here? Oh, and for 2011 Apple and MS are both in the mid 30 range for profitability, with 30 some odd companies ahead of them.

So once again, what was your point?
@Bill Pharaoh: ... and services like IBM did. And if Ballmer will continue his policy, then MS might go to the same route in the long run.

But, of course, that long run is way too long run. Even if Apple will continue to grow like 23% YOY comparing to its own preview year's marketshare, even then it will take 10 years to go from current 5% share to any levels that would harm Microsoft -- for example 40% share (and I do not think that it is really possible for PC market due to Apple's products/price policy).

But if you combine PC market with tablet market, then MS might go less relevant than ever in just 5 years -- since tablets are going to ship hundreds million units per year in that time.
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RE: Microsoft flails again
bmonsterman 7th May 2011
@Bill Pharaoh,

Hard to say Apple is flailing in the enterprise market. They really aren't even in the enterprise market.
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RE: Microsoft flails again
jimmy9200 1st Sep
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RE: Microsoft flails again
bmonsterman Updated - 7th May 2011
@Robin Harris,

That's a somewhat fair statement. Microsoft hasn't abandoned the consumer market...but they certainly aren't much of a player there anymore. It's arguable that they never have been. The desktop has been a business product that has done well in the consumer market because there wasn't much else there to compete with it. That's changed. Outside of the desktop and maybe XBox MS has never really had that compelling of a consumer market offering.

While MS has been performing inadequately in the consumer market, they have done very well in the business market. While they continue to dominate the desktop and business productivity market they have gotten market penetration with their Business Intelligence and ERP offerings. SQL Server as increased in market share. Biztalk has become a best in class product for systems integration. With Azure, the give the current customers a viable cloud solution. I can hardly believe Microsoft is flailing.
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You hit the nail on the head
Economister Updated - 6th May 2011
"And Windows profits force them to keep trying to shore up the traditional PC as the preferred consumer device when its clear that smartphones and tablets are where the market is moving."

The decision to cannibalize your cash cows is just too difficult. Therefore, others step in and fill the void. Never mind the fact that MS never had the vision in the first place.

Edit: There is a typo in your headline. The word is "fails", not "flails". wink
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RE: Microsoft flails again
250608 6th May 2011
Irrelavance is MacOS market share: 5% in US and 2% globally. Microsoft ROCKS in desktop and Apple is an eternal flop.

Apple is good selling musics, cells and tablets. And that?s all.
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RE: Microsoft flails again
TryllZ_HuuD 6th May 2011
@250608 I believe you are true, Mac is only appealing in the UI and hardware, rest everything is Windows-World, but Ballmer will ruin M$'s world dominance...and Apple will take over...Ooops! it has in Market Capitl Value...thats 1 down remaining products to go...
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Gads!
CowLauncher 6th May 2011
@250608 what orifice are you pulling those numbers from? Mac OS is at something like 15.36% in the US. Switzerland has the highest Mac OS X market share with 17.61%
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Wrong.
bengel64 6th May 2011
@CowLauncher

As of May 2011 Mac OS global market share is 5.4%

http://marketshare.hitslink.com/
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@CowLauncher

Having fun launching cows?
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Where netbooks actually just a fadd?
andrewjg 6th May 2011
I am wondering if netbooks were just a fad.

I bought an iPad 2 last week. I really wanted it for reference books not novels, I prefer my e-ink ereader for those. Browsing the web is inferior on an iPad. I mean no tabs and if you download an alternate browser it still just does not feel right. I think the screen is a bit too small. I want to middle click and open up a lot of tabs. Note taking is not pleasant on a tablet.

I like the Bible software and chess. I think it is useful as a quick reference tool. I also imagine games could be quite fun. But tablets are simply not comparable to netbooks.

I think people bought netbooks when they actually wanted a tablet and Apple showed them that.

I believe that a great many people who buy tablets will realise it actually wasn't worth the money. In 5 years time when tablets are half the price they will be worth it. But by then I think our smart phones may well be our computers. With tablet's and notebooks just being peripherals without any processing or storage of their own and with the smart phone OS deciding which UI shell to use based on the display being used.
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RE: Microsoft flails again
omdguy 6th May 2011
@andrewjg

Good post, and I concur. Netbooks were definitely a fad and I beleive tablets will suffer the same fate, especially as phones get smarter and faster. The difference of 6 inches in screen real estate is what we are talking about here between a 4 inch phone and a 10 inch tablet, so why would ANYONE pony up another $700 to have both????
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Eyesight
Robert Hahn 6th May 2011
Lots of people squint to read the text on a 7" screen, let alone a 4" one, even with glasses. "Lots" means a majority of humans over 40.

Now watch some guy claim that he can see the screen just fine, so that proves it's not a majority.
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RE: Microsoft flails again
StupidTechZealots-23432415690276115908309621553360 6th May 2011
@Robert Hahn That makes Apple's insanely high dpi on the iPhone 4 all the more worthless.
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Here I am looking at a MacBook Air
nucrash 6th May 2011
Why not a PC? Because anything that comes close to the specs I need in the PC is well over the price of an equivalent Mac. I could buy a cheap laptop that I would replace in a year or three or buy a Mac with a bit better of a life and a better experience.

I saw the marketing and one of the things that is really pushing laptops today appears to be longer battery life. Mac usually wins that market pretty handily. Windows systems usually don't account for that as much. So with that in mind, I do want to be able to use a system for 7 hours quite often on my longer trips and there really isn't a windows system that takes that into consideration. This is also a reason why I love my first gen iPad.
@nucrash

Ok. I'll start by making some admissions.

1. Apple makes nice hardware.
2. Nothing wrong with OSX if it fits your needs.
3. Hard to bead the "prestige" of owning a Macbook Air, if that kind of thing even holds a bit of importance to you.

Now, down to business. Your full of crap.

You say:
"Why not a PC? Because anything that comes close to the specs I need in the PC is well over the price of an equivalent Mac"

You must be new here and have no clue that a 1000 times over its been proved unequivocally that Macs in all forms are more expensive then similarly or even better equipped PC's, although Apple has made some honest price reducing strides in recent years.

Macbook Air:
http://store.apple.com/us/browse/home/shop_mac/family/macbook_air?aid=AIC-WWW-NAUS-K2-BUYNOW-MACBOOKAIR

Toshiba Tecra 13.3" (one example of many that will mop the floor with a Macbook Air)
http://www.bestbuy.ca/en-CA/product/toshiba-toshiba-tecra-13-3-laptop-featuring-intel-core-i3-370m-processor-r700-00h-black-tecra-r700-00h/10164036.aspx?path=bd9571684da19a8ee8010c1406230f48en02

And when it comes to desktops...forget it. You can custom build desktop PC's so the price comparison isn't even fair anymore. You can have a PC custom built to spec that will crush any Mac for about 2/3 price. Unfortunate for Apple but true.

So please, in the future, think before you type.
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Robin Harris flails again
Bill Pharaoh 6th May 2011
I actually don't know why he blogs anymore, to tell the truth.
That's just sad to watch anymore.
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If you are going to .....
Economister 6th May 2011
@Bill Pharaoh

criticize a blog, surely you need to provide SOME specificity. If this is the best you can come up with, you are considerably worse than the blog itself, any blog.
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RE: Microsoft flails again
ITOdeed Updated - 6th May 2011
@Bill Pharaoh
Please read and understand the whole article before making a complete fool of yourself.
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Gee you are not Biased at all
bobiroc Updated - 6th May 2011
There is so much hate tone and Bias in this Blog.

To some they find Value in buying Mac and find value in MacOS and prefer to use it.

To others they see Value in Windows and the choice of brands the can get computers from. They may also prefer to use Windows over MacOS.

Who really cares. You comments about Microsoft fading away and using a comment made about an HP notebook saying it is unbelievably light as a basis for your argument make you no better than the many trolls who visit here. Apple calls the iPad magical and yet I have seen no signs of it doing any magic.

Get over yourself Robin
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His post is based in reality
HollywoodDog 6th May 2011
@bobiroc ... and reality has a well known anti-Microsoft bias.

It's not 1996 anymore.
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Message has been deleted.
ScorpioBlue Updated - 8th May 2011
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Now that is fair comment.
Cayble 7th May 2011
@bobiroc
From beginning to end, true and fair.
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All blogs are biased
ScorpioBlue 9th May 2011
@bobiroc
Is what you said supposed to be some kind of new revelation or what...

What hole have you been hiding in all these years? Must have been deep.
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Reality Check
Qbt Updated - 6th May 2011
Reality Check:

http://marketshare.hitslink.com/os-market-share.aspx?qprid=9&qpct=2

I think the ones "flailing" are those under the impression that Apple's desktop OS is a success on any level.

Wow! Five. Point. Four. Zero. Percent! You guys are winning!
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Market share is a stupid metric
HollywoodDog 6th May 2011
@Qbt ... unless investors start wanting to be paid in market share instead of dollars.
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RE: Microsoft flails again
WishyWashyWannabe 6th May 2011
@HollywoodDog
Marketshare is quite pertanent. It really sets the tone for how much of a dent Windows8 and their OEM partners will make in iPad sales. Why buy an iPad or a PC when you can have both in one? Smell whats cooking yet??
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RE: Microsoft flails again
Qbt Updated - 6th May 2011
@HollywoodDog

OSX isn't a success on any level. What makes Apple money at this point is the iBaubles they sell. They found a cash-cow. Kudos to them. But OSX isn't why their stock price is going up. OSX is just as big a loser as it was a year or two ago.

Of course they do make more profit from an OSX sale than what MS makes from a Windows sale since they also charge you for overpriced hardware (and apparently some Apple fanboys are "proud" of the fact that Apple has high hardware profit margins, apparently not realizing that the reason they have high profit margins is because they are overcharging, lol - it isn't more expensive because it is "quality", it is more expensive because they overcharge).
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I smell something coming from Microsoft
HollywoodDog 6th May 2011
@HollywoodDog ... but it isn't cooking.

I smell a business model geared for 1996 - except it's 2011.

I see an iPad/iPhone marketplace dominance, billions of dollars of apps and music being sold, and a fat sweaty idiot ranting but not raising his stock prices.
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QBT - I don't feel overcharged
HollywoodDog 6th May 2011
@HollywoodDog ... I get an integrated hardware/software product that works really well and is cleverly and attractively designed, and doesn't fail, doesn't bit-rot, and holds its resale value better than PC's.

There are things about Apple I dislike (icentipad, big brother, etc). But I like everything about hot iMacs.
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Anti-Microsoft propaganda
Tim Acheson 6th May 2011
Microsoft have lost their consumer mono?

Does that include Kinect, the fastest-selling consumer electronics product of all time? Does that include Xbox, the best-selling interactive entertainment console for about the past ten months running? Does that include Windows and Office, the software on almost every computer in almost every home and business in th world? Just checking.
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RE: Microsoft flails again
crazydanr@... Updated - 6th May 2011
@Tim Acheson

Yes, but look at all the tablets and phones they sold! Soon no one will use a PC, it will all be tablets and clouds!

*rolls eyes*

Some of us are still doing work and need more than a toy to get it done. We tried iPads at work at they are a flop. And my touch is great for skeeball, but not for much else.
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RE: Microsoft flails again
Robin Harris 6th May 2011
@crazydanr@...
For doing real work I agree that iPads and iPhones aren't enough. I need a keyboard and a multi-tasking OS - iOS doesn't cut it for what I do.

But most folks are single-tasking. Reading email, surfing the web, watching video, light gaming - and for that tablets work.
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RE: Microsoft flails again
omdguy 6th May 2011
@crazydanr@...

I almost agree, except that I don't see tablets being a long term, viable market. I would re-phrase and say the future will be a wireless or wired device and the cloud.

No one understands cloud computing, mainly because the media can't figure it out, but the cloud is here today and will be the future for sure, to which, I definitely like Microsofts odds in that market!
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RE: Microsoft flails again
WishyWashyWannabe 6th May 2011
What a waste of perfectly good blogging space. Robin = not very well thought out arguements that parallel Fox News.
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RE: Microsoft flails again
FAULKNE 13th Oct
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