Microsoft attempts to sour Apple's laptop launch

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Tactics reminiscent of a close presidential race seem to be popping up in Microsoft Corp.'s rivalry with Apple Inc.

Just a few weeks ago, the software maker, tired of being the butt of Apple attack ads, launched a positive series of commercials highlighting the diversity and coolness of Windows users. But then in the hours before this week's product announcement from Apple, Microsoft went negative.

A Monday evening e-mail from Microsoft's outside PR firm titled "Why You'll Find Better Value in Windows PCs than Macs" aimed to deflate anticipation that that Apple might unveil a cheap-by-Apple-standards $800 laptop. (The rumors were off by $200).

Microsoft laid out its talking points — among them that Windows PCs come with more power and features for lower prices, while Macs are even pricer than they look because they don't come with enough software.

In true political style, Microsoft trotted out a hidden "Apple tax," an extra $1,000 or more Microsoft says people switching from PCs to Macs must pay to "rebuy" software and hardware for their new system.

And what's more, "Macs, due to their high upfront (prices), won't sell in a more conservative market."

(Steve Ballmer, Microsoft's CEO, did not pop up to say he approved the message; the e-mail suggested journalists attribute the quote to "a Microsoft spokesperson.")

On Tuesday evening, the Microsoft camp followed up with a colorful chart akin to a post-debate fact-check, showing Windows PC configurations similar to Apple's new MacBook and MacBook Pro models at comparable, or lower, prices.

"Bottom line: you're going get a great Windows Laptop with a lot more, at a lower price than any MacBook. Period," the agency's e-mail read.

To push the political parallel even further: If Microsoft's message is aimed at "swing voters" who might be tempted by a Mac, the software maker might not be speaking their language.

Apple's decision to keep its Mac prices at $1,000 or more indicates the company doesn't think economic turmoil will stop its target customers from buying a Mac. Nor does Apple believe Mac users would give up the simplicity of their machines for the ability to do some tinkering under the hood on a Windows computer, as Microsoft suggests.

Unlike either of the presidential candidates at this point, however, Microsoft is winning the PC race by a landslide.

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{"commentId":3500096,"authorDomain":"checkerbattery"}

In Microsoft's defense, they've tried ignoring Apple's negative campaigning and I think they finally decided that they couldn't just let Apple say and do whatever they wanted and have people accept it as fact. 

This is a classic example of what you see in today's presidential campaigning where politicians know that if you repeat something long enough it's eventually accepted as fact.

Obama is an Arab

PPC chips are faster than Intel

McDonalds hamburgers contain worm meat

Your new camera won't work on Vista

Bill Gates will pay you cash to forward an email

Macs really are cheaper

And the list goes on and on.  The problem is how to do you attack the underdog without looking like a big bully?  That's what Microsoft is grappling with now, and it's a nut few are able to crack.  They're probably on the right track but only time will tell whether this new track will ultimately be successful or not.

{"commentId":3500096,"threadId":"389555","contentId":"2002052","authorDomain":"checkerbattery"}
  • 1 vote
Reply#1 - Wed Oct 15, 2008 5:56 PM EDT
{"commentId":3500889,"authorDomain":"ericwelch"}

Uh, wait, Microsoft isn't winning the PC race. They don't make PCs. 

Apple's now making 31 percent of the profit on computers while only selling 17 percent of the computers sold.

How is that a landslide for PC makers, let alone Microsoft. Microsoft is throwing out false facts, because they're desperate. Steve Ballmer has gotten into the act as of late. He was saying they sell 33 PCs for every Mac. Ignoring the fact they only sell operating systems, it's a reasonable comparison. Except for it's way wrong. He's quoting numbers from years ago when Apple had 3 percent market share. Now they're pushing 18 percent and Ballmer's to out of touch he doesn't even come close.

His conclusion isn't even valid if the numbers were correct. He says more people buy PCs, so that means PCs are better. 

Yeah, and a Toyota is better than a Porsche. Throw that one against the wall and see if it sticks.

{"commentId":3500889,"threadId":"389555","contentId":"2002052","authorDomain":"ericwelch"}
    Reply#2 - Wed Oct 15, 2008 6:43 PM EDT
    {"commentId":3504627,"authorDomain":"checkerbattery"}

    In defense of the author, he or she might have been quoting last years numbers from
    IDC where they found that Apple has 2.9% of the worldwide PC market:

    http://apple20.blogs.fortune.cnn.com/2008/04/01/analyst-apples-us-consumer-market-share-now-21-percent/

    Gartner also records Apple's new PC ship rate as an 8.5% share in the U.S for Q2 2008 and less than 4% worldwide:

    http://www.gartner.com/it/page.jsp?id=724111

    And not to be contentious but if you need to haul your boat to the lake, a Toyota can be better than a Porsche.  If you want a car that is fuel efficient then a Toyota can be better than a Porsche.  And if you want to take five of your buddies to the ballgame a Toyota can be better.

    Better depends on your needs, and just because something costs more does not make it better.

    {"commentId":3504627,"threadId":"389555","contentId":"2002052","authorDomain":"checkerbattery"}
    • 1 vote
    #2.1 - Wed Oct 15, 2008 10:31 PM EDT
    {"commentId":3531715,"authorDomain":"masternav"}

    What is interesting about this is that Apple computers are now equiped to run Windows along side the MacOSX, since the transition to Intel CPUs. Ironically, Apple marketshare and growth is increasing rapidly (compared to the relatively flat growth shown in the PC market), showing on average 37% growth in sales quarter over quarter in the last two years. There are other equally interesting statistics that can be bandied about but the upshot of this growth has been to reinforce a consumer perception that Microsoft is unable to deal with the key issues surrounding security, ease of use and reliability in the Windows platform. Since they have struggled with "correcting" this perception among consumers through advertising, they have to go on the offensive.

    The problem inherent to them going on the offensive is they are only one part of the problem - the OS/software. When you have PC manufacturers willingly (or reluctantly) replacing Vista with XP for purchasers, and technology managers in large companies refusing to or limiting deployment of Vista in their environments, it contributes to the reputational issues as well.

    And checkerbattery to your point: if your Toyota needs a trailer package, an upgrade to the transmission, and a larger engine to pull the proverbial boat to the lake, and then as you are pulling it to the lake doesn't accelerate well, stalls frequently or can't pull that much weight what good is it compared to any other car, regardless of make. The logical choice may be a BMW SUV. Better engineering, better reliability, better power package, better warranty coverage, factory equiped trailer package and yes higher cost. But it pulls, tote n hauls, and gets (for an SUV) decent gas mileage - plus it retains its value better than the Toyota as well. So yes cost alone doesn't make something better, but paying for the proper characteristics for your vehicle (or computer) to do what you need to do the way you want to do it only makes sense.

    {"commentId":3531715,"threadId":"389555","contentId":"2002052","authorDomain":"masternav"}
    • 2 votes
    #2.2 - Thu Oct 16, 2008 1:44 PM EDT
    Reply
    {"commentId":3501073,"authorDomain":"fiftyone"}

    Apple has a superior product, I love apple. If they were just a little cheaper.

    {"commentId":3501073,"threadId":"389555","contentId":"2002052","authorDomain":"fiftyone"}
      Reply#3 - Wed Oct 15, 2008 6:55 PM EDT
      {"commentId":3604468,"authorDomain":"cacique88"}

      I have been in the networking business for over 25 years. I have worked on numerous projects to create interoperability solutions to companies wishing to use the Internet for their operations since 1983 when doing so meant working with multiple proprietary protocols from Burroughs, Sperry, Honeywell, IBM etc... I discovered early in my work that Apple Macintosh was a superior product to use and began experimenting with the very first Macs introduced January 1985. In my 23 years I have experienced the evolution of the Macintosh product line first hand and i will testify to the superiority of Apple for both home and business use.

      That said, I wish to place my vote squarely on Apple and believe that the conservative PC is basically a mediocre system, difficult to use and with many pitfalls and anomalies. In my 23 years, I found that the user experience is the key breakthrough Apple has harnessed over the years forming the great advantage Macintoshes enjoy over the PC. Users discover that more can be done with a Mac out of the box than can ever be achieved by a PC without the headaches and problems that make PC Windows usage a frustration for ordinary users and power users alike. The Mac v PC commercials are effective because they draw from this well of experience and resonate with users particularly the ones that depict the limitations of Windows systems.

      I agree wholeheartedly with MasterNAV. I would only add that in the final analysis Macs become more cost effective because they allow for a deep user experience. Users find Macs to be fun and wonderful. I can provide thousands of examples. The Macintosh now is my preferred desktop and notebook solution for enterprise and business customers. I predict that Apple will expand its momentum and become the market share leader within the next 5 years!!!

      {"commentId":3604468,"threadId":"389555","contentId":"2002052","authorDomain":"cacique88"}
        Reply#4 - Tue Oct 21, 2008 8:35 AM EDT
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