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Is Apple Doing All It Can to Beat Vista?
aalobode writes "The New York Times is running an article on the narrowing window that Apple has for beating Microsoft's Vista. According the Times, not enough has been done to capitalize on the Mac user experience versus the 'world of hurt that is Vista'. It also points out that that restructuring of Apple leaves ambiguities about Apple's exact commitment to the computer end of its business. The article calls MS Vista's certified vendors, developers and driver writers a flywheel that takes a while coming up to speed - and then becomes unstoppable."
Once SP1 hits, the flywheel's going to spin a LOT faster.
I've been tempted to buy a Mac, but I game - and for the cost of a 17" Imac with pretty crappy video, I recently built a Core2 Quad 2.4ghz, 2gb ram, 500gb disk, Geforce 8800GTS, etc.
If apple were to release a PowerMac chassis at a slightly less inflated price, i'd be pretty keen... but double the cost of what I built? No thanks...
I run: Windows, OS X, Linux, FreeBSD. Just because you have a hammer, doesn't mean everything is a nail.
Steve Jobs has picked the iPhone as Apple's next platform. Maybe he should of focused on getting Leopard out this year to steal Vistas thunder. Only time will tell if he has made the right choice.
With the New York Times putting fawning articles like this in front of millions of readers every day, why would Apple want to spend money to do the same?
As a lifelong Apple fanboy (all Apple since 1982, thanks), I can say without a doubt that there's not been a better time to be an Apple fanboy in 20 years. We actually have some street cred now. IT departments no longer laugh dismissively at the idea of perhaps a Mac in the office, maybe. (Though corporate America is a long way from embracing Macs. And Apple originally lost the PC war because most consumers bought what they had at work for home (and, hey, it was a little cheaper).) People are actually buying Macs. Sales are up; growth is up. The article makes a big deal of Apple not starting its relationship with Best Buy soon enough to gain a retail presence. Hello? NYT, two years ago Apple barely had the cred and was still working on retail presence for the iPod. I bought my iPod at Target; I've vowed never to buy so much as a blank CD at Best Buy after some of its shady business practices, and if Apple wanted to just make the Mac available to more people, it'd sell them everywhere the iPods are sold. How far away is that? Well, they'd have to be able to make enough Macs to put them there, but I bet we'll see it someday.
and hasn't since Jobs took over. There was a period when Apple's main goal was to increase market share. When they licensed the mac os to run on third party hardware (I have a mac clone from back in the day). It almost killed apple.
Ultimately, to take any significant chunk of the PC space, apple would need to start releasing hardware on a much smaller profit margin in order to compete with Dell, Gateway, Acer, and Lenovo. This would destroy Apple's profits and company, as the Apple clones fiasco empirically demonstrated.
On the other hand, Apple's current strategy of releasing high profile hardware to a niche market has done phenominally well for them. They've stayed profitable, and have boosted their marketshare to an incredible high compared to historical values.
If you'd bought apple stock and google stock at the time google went IPO, your apple stock would have outperformed your google stock by 3 or 4 times. Apple is doing *very* well and has no incentive to move away from their current low volume, high profit margin strategy. They are essentially skimming the creme of the consumer crop with their products.
Silly people. Jobs was talking about this numerous times.
Apple never targeted broad audience. True, it can sell to very broad audience, but still Apple prefer to have few but loyal customers.
What also crossed my mind, is difference between Windows/Vista and Mac OS X. How does MacOS becomes platform of choice? Because you have to choose MacOS (as well as Apple hardware) by yourself. This establishes kind of barrier. But people who would cross the barrier are people who made their choice. The barrier works both ways: it takes some money investment to cross it (acquire hardware/software) and it takes some paining experience to come back to Wintel (which lacks all the polish, integrity and utility of Apple offering). But still, you are to make the choice by yourself.
And now ask yourself, who of us had chosen Windows?? Right, nobody. It's the thing which came preinstalled.
All hope abandon ye who enter here.
OSX won't replace Windows anytime soon because it's tied with the Mac and only Apple can make and sell a Mac. There is no way Apple can manufacture as many Macs as the Windows-PCs made by Dell, HP & Co. Ff everybody stop buying Windows-PC and go buying Macs, there simply won't be enough offer to meet the demand. Prices will skyrocket or delivery times will get impossibly long and most people will have to buy PCs no matter what.
OSX can replace Windows only if Apple sells it as Microsoft does, but that means becoming a software company and compete with other manufacturers for the hardware, and likely lose the HW market. Remember what happened when Mac clones started to be successful in the past? Apple shut them down.
Probably Apple is still not interested to change its business model and is happy with OSX being a niche OS, maybe a large niche, but still a niche compared with Windows market share. After all the revenues aren't that bad and MS has no particular reason to look at them as particularly dangerous. I suppose they're thinking, we're making a lot of easy money now, so why take risks and change?
apple tried that it nearly bankrupted the company. Selling an OS without a monopoly is unprofitable. why else do you think that only free software OS's have been able to make in roads while every single other for profit OS company is just about gone?
Without a monopoly no matter how gained selling just an OS will fail. Apple is worth more than Dell because they keep things locked down, and stay out of the cut throat market of cheap hardware.
i thought once I was found, but it was only a dream.
I find it surprising to come from the NYT, but this is such a troll of an article. starting "if you want a new PC you're screwed because everyone knows Windows is shit" going on to say "Apple has a much superior operating system" and ending with "Apple only has a 3% market share because it doesn't want a bigger market share, if they wanted a 90% market share they could have it any time they wanted" And all this suported by the most selective of fact picking.
IMHO Vista is a sh!t. But, IMHO, you are doomed to use it anyway.
Below is all my IMHO, folks. Be friendly, don't take me as troll. But you still doomed to see Vista, no matter how shitty Vista is. Because:You would say what is the proposal? Let's try to think. ;-) In my opinion:
P.S. I am MacOSX, Solaris, Linux and BSD advanced power user and developer of software for more than 10 years. Don't tell me soap stories about "nice Linux Desktop", please. Just fucking please.
I am a former Apple employee who still maintains close ties to the company. I am also a former professional economist; I went to grad school for my Ph.D., but didn't finish my dissertation. I can state affirmatively without breaking any NDAs that The Fine Article is full of bullsh*t.
Let's start with his sales figures. "The Mac's *worldwide* market share was 3 percent as of June 2007, according to Roger L. Kay, president of Endpoint Technologies Associates, a consulting firm in Wayland, Mass." (Emphasis mine) Worldwide market share is a poor indicator of Apple's markets. It is mostly a US-focused company and will stay that way in the near future. In the US, Apple's market share is around 5-6%, according to the most recent figures I could find. More importantly, the growth rate is more than four times higher than the industry growth rate, 32% vs. 7.2% (IDC estimates via Apple's latest quarterly report). It doesn't take long for that kind of second order effect to dominate. Comparing the market share now (after the events of the 1990's) to Apple's market share when its mainstay was the Apple II is really bad analysis. I would expect better from the author, a professor of business who presumably knows basic microeconomics.
His figures for the share of computers in use are suspect as well. "Funny thing, though: based on the ratio of Windows and Macs actually in use, no gains can be seen for Apple. The Mac's share of personal computers has actually edged a bit lower since Vista's release in January, and the various flavors of Windows a bit higher, according to Net Applications, a firm in Aliso Viejo, Calif., that monitors the operating systems among visitors to 40,000 customer Web sites." Measuring OS usage share by measuring browser hits is a seriously flawed methodology. There are know sources of bias that lead to higher than actual market share figures for Internet Explorer on Windows, including sites that require users of other browsers to spoof the user agent header, measuring usage on sites that have ActiveX elements that drive away non-Windows users, and extra files being sent to Internet Explorer in order to work around problems in the IE rendering engine. Furthermore, the author is looking at the wrong figures and the drop that he's looking at is statistically insignificant anyway. The figures that he refers to are 4.68% (2007Q1) vs. 4.63% (2007Q2). Windows Vista was released to the general public on January 30, 2007. Thus, the base figure he should be using is 4.06% (2006Q4), which predates the release of Vista. A simple statistical test based on the Net Applications market share figures for 2004Q4 through 2007Q2 shows that a 0.05% difference is not statistically significant. Heck, any reasonably trained economist should be able to eyeball this and say that given that trend, a 0.05% difference is not statistically significant.
As far as the whole Best Buy thing goes, the author completely misses the point behind Apple opening its own retail stores. Apple tried for years to work with CompUSA, Sears, Best Buy, and other consumer electronics retailers to sell Apple computers to the masses. Each attempt was a dismal failure, as the personnel at the retailers could not sell something as complex as Apple's equipment. They were barely able to sell TVs. The only sort-of, kind-of successful experiment in there was the store-within-a-store at CompUSA, which was done by putting Apple employees into CompUSA stores. Even that didn't work too well, as the Apple section got lost in the middle of all of the other stuff. Apple is trying again to expand it's retail reach, but I would put the odds against it. Big box retailers' emphasis on low price and minimal service is completely at odds with how to sell Apple computers.
"Apple has not even begun to try to re-enter another domain from which it had withdrawn its Mac sales teams: large corporations." That would be news to Apple's entire Enterprise Sales team -- several hundred people. I work with them on a daily basis, even now. They've been there all alon
I find this an interesting article for the most part, but it's really kind of "preaching to the choir" isn't it?
The author talks about not taking advantage of this small window of opportunity to attack Vista. He also goes into great lengths about all the fabulous things Apple has already done to position itself as an alternative to Vista including the transition to intel processors, the fantastic ad campaigns, and the refinement of OS-X. Although he only says that "the official Mac line is that it has gone swimmingly" which seems imply falsehoods, he does manage to mention that sales are up over 30% across the board!
To me this sounds like unprecedented growth and execution, not a failure.
He then answers his own unproven assumption (that Apple isn't doing enough) by expressing "what could be done" as:
- ramping up their retail presence
- offering more for corporations.
But these two things are exactly what Apple *has* been doing for the last couple of years. In fact, Apple's focus has been so intent in these areas that it's on the verge of dropping the ball this year on a number of other issues as a result. How could Apple could ramp up the retail expansion any faster than they already have lately without stumbling? How could they focus any more on their high end and back-end server stuff for corporate environments with Leopard? Being certified as UNIX this year doesn't give them enough cred? Coming out with a fully exchange compliant server and simultaneously offering it's own end to end solution to compete with exchange server based on open formats and open source code is not enough? Coming out with a brand new corporate smart phone to challenge RiM is not enough?
Apple is already going through intense, rapid expansion on all fronts probably more than at any time in it's history and the very issues he mentions are already already major focii of their expansion plan.
I'm not saying it's a stupid article, but it's kind of pointless in that all it really does is restate some recent history, (MS took five years off and OS-X has come in from the cold), add some overly obvious business advice, (expand retail, expand markets, consolidate marginal markets), and then it just kind of wrings it's hands and worries about how far Apple can get before the "giant flywheel" of Vista gets it.
I'm worried about the flywheel too, but I fail to see what more Apple can do on any of these fronts that it isn't already doing. In particular, expanding retail locations any faster than it already is, would be a dangerous course for Apple and in the end probably bad business advice.
So see, with Ubuntu I get the Vista experience and the Mac OS X experience, all for basically $0!
If it really did give me the "Vista experience", I would be running FreeBSD instead.
There is a little German car maker you might have heard of named Prosche. They make sehr viel money. Their stock is doing sehr gut. They don't really care about market share. Now, nobody bothers them about this or writes little essays about how Porsche will never catch up with Toyota or GM, because everybody understands they are playing for profit, not market share. For some reason, many people don't understand this with Apple. They keep talking about market share.
Apple has no debt. They are making lots of money -- okay, so is Microsoft. Their stock is up, what, 70 per cent this year -- Microsoft's has been dead in the water for years. Apple has two different product lines that are doing fine: Computers and iPods. They are working on a third, the iPhone. Microsoft has two products of the same type, Windows and Office, that make money. Everything else they have touched, like the Zune and the Xbox, has been a financial disaster.
Let Microsoft keep its market share. Apple is making money and making its shareholders happy. Like Porsche.
And windows is like a dog that has been fed pet food from china since birth. (Vet trips, limited survival)