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Why Microsoft Can't Compete With iTunes

A reader submitted "Why Microsoft Can't Compete With iTunes which is an interesting op-ed piece about the differences between the two companies, but also the intersection with a different type of business like that of television. I've read some of the same arguements before, but this piece ties it up nicely together."

8 of 249 comments (clear)

  1. No. by Kadin2048 · · Score: 4, Informative

    The U.S. DOJ settlement against Microsoft did very little. I would argue it basically did nothing of any relevance, certainly nothing that fundamentally changed Microsoft's business practices. If anything, it probably emboldened them, since the end of the settlement made it harder for a new one to be brought against them in the future -- it demonstrated that the U.S. government didn't have the political cojones to actually do anything meaningful.

    Here's the DOJ's lame info site on the settlement:
    http://www.usdoj.gov/atr/cases/ms-settle.htm

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  2. Re:duh... marketing by hr.wien · · Score: 2, Informative
    Everyone who owns and iPod uses iTunes to transfer music to it (well you can work around this but its a pain and pointless unless you a techie)
    Speak for yourself. I use Winamp, and it's neither a pain (works out of the box) nor pointless (I get a lot of features iTunes doesn't have, like on-the-fly transcoding of my .flac files to AAC, and the ability to copy songs back off the iPod if I want to).
  3. Why corporations CHOOSE microsoft by klubar · · Score: 3, Informative

    I read your article about the "Microsoft fallacy", but you seem to have totally ignored the corporate market. If a Fortune 500 company really wanted to buy machines without Windows licenses they could easily cut a deal with Dell. Dell already sells machines without OS's (see the workstation/server pages) and can special price & configure machines--in fact, they'll even preload any OS/software you want on a machine (minimum quantities apply). However, big corporations really want Windows--it's easily remotely administered, works well with other applications (especially Exchange) and there is a large ecosystem to support it. From secretary training (how to log in, use word) all the way up to advance internals experts. From a corporate point of view, Windows just works.

    Because the big corporation use Windows, all of the smaller firms that buy or sell to the big corporations frequently need to use windows. Sure I could deliver a presentation myself using keynote, but the first time I send it to a corporate client will be the last time with that client. Same thing with sending a document in a "weird" apple font (sure they can open it, but it will look strange--the question will come back "can't you just put it on a PC?".)

    The iSeries (iTunes, iMove, iGarageBand) is essentially meaningless in the corporate environment. Apple has pretty much given up any hope of getting more than a pip of share in companies with more than 500 employees. The same thing is somewhat (although not completely) true in the educational market.

    The training cost of a new hire who doesn't know how to use Windows/Office is higher than one who does--two identically candidate--one who is ready to go and the other who "gee I've only used a Mac, but boy can I operate GarageBand" which would you hire?

    Apple are cool, shiny objects--just keep them at home.

  4. Re:duh... marketing by cayenne8 · · Score: 2, Informative
    "You're right about the grandparent post but you're leaving out the small detail of DRM. The iPod works with any service that sells non-DRM infested music."

    Well, and I think that studies show that...the majority of people's majority of music on their iPods is not bought from online services, but, mostly are ripped from their own CD's they own (or possibly 'borrow' from friends). An iPod works great for that....and iTunes now is nice enough to give you album covers for these songs too.....

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  5. Re:How about... by 2nd+Post! · · Score: 2, Informative

    You really think so?
    Gen 1: iPod vs Creative Nomad, iPod uses 1.8" HDD Nomad uses 3.5" HDD
    Gen 2: iPod vs Creative Sleek, iPod uses 1.8" HDD and Nomad uses 2.5" HDD
    Gen 3: iPod mini vs Creative Zen micro, iPod uses 1" HDD and Zen uses 1" HDD (8 months later)
    Gen 4: iPod vs Creative Vision:M, iPod uses 80gb 1.8" HDD and Zen uses 60gb 1.8" HDD and is nearly twice as thick
    Gen 5: iPod shuffle vs Creative Muvo, iPod eschews screen for size
    Gen 6: iPod nano vs Creative Zen V, iPod uses flash and Zen uses flash (several months later)
    Gen 7: iPod shuffle vs Creative Muvo, iPod eschews USB hardware for size

    Every generation of iPod has been smaller until several months later when a competitor steps up to the plate and copies them.
    Every generation of iPod has been competitively priced, and when competitors try to match prices they suffer quarterly losses (See Creative, iRiver, new Zune, etc)

    Can you name another 30gb MP3 player as small as the iPod for significantly less than $249, Apple's price? Creative's Zen Vision:M costs the same and is bigger in volume.

  6. Re:this bit is interesting .. by Brickwall · · Score: 2, Informative
    The PC industry wasn't created by government decree with Bill Gates appointed Head Tyrant. They won and maintain a position of nearly complete dominance in an emergent market over companies like Apple that continue to attempt to compete with them.

    Simplistic, mostly wrong, and clearly written by someone who has no understanding of IBM's complete dominance of the US computer industry in the 1980's. When PC's emerged, most corporate IT managers were aghast at the thought of people trying to connect all these different machines to their IBM SNA networks. They gave a huge sigh of relief when IBM introduced its PC; now there was something that was officially sanctioned to not screw up their networks. So even though rival machines, like the Apple II, were less expensive, corporate IT managers bought IBM machines running MS-DOS. Then they bought more. Then more.

    It had nothing to do with MS-DOS's abilities vis-a-vis other operating systems, and had everything to do with the FUDge packed by IBM. "Hey, buddy, what if one of your users connects one of those Apples to your cluster controller, and it ends up bringing down your FEP? I wouldn't want to have to explain that to the VP of IS. But our machines are guaranteed to work within your network." As corporate America bought millions of IBM PC's, cheques flowed into Redmond, funding MS so they could copy 1-2-3, WordPerfect, etc., and increase their hold on the desktop. I'll be the first to admit that MS does deserve some kudos for Office; yeah, they copied a lot of ideas from other people, but they did a very good job of it.

    But MS wasn't content to do that, so they entered into restrictive contracts, etc., which brought about the DoJ suit. So, most of MS's succcess is a result of piggybacking on IBM's huge installed base, some is a result of their doing some very good progamming, and some is a result of dirty tricks. I'll let you decide the percentages.

    --
    What was once true, is no longer so
  7. Re:Then you are a minority by Rakarra · · Score: 2, Informative

    Actually, he really isn't on the fringe, what he is asking for is DRM-less music, and there's a lot more of that on the iPods of the world than there is music purchased from the iTunes Music Store.

  8. Re:Antitrust settlement by rdoger6424 · · Score: 2, Informative

    huge difference:
    wmp= Critical system component, painful to remove; iTunes= Drag to trash, click delete.
    IE=Critical OS Component; Safari=Easily removeable web browser
    those are the 2 that immediately come to mind.

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