why apple wins.

people have probably seen my monumental struggle with Apple customer services to get my $250 back for my broken Airport Extreme. If you haven’t seen my previous posts, to sum up, “DONT BUY AN AIRPORT EXTREME”. You have been warned. It sounds great, it really does. But its crap. Really crap.

So people have asked me, are you still an apple fan? And the answer is yes. I own apple shares, and I think they win in general. Why? because Apples run better software. People have been saying for years that the hardware is not important anymore, its all about the software. But it seems most people don’t believe that.

The Mac OS X is not a perfect operating system. But it is the best one out there. Its Unix, its pretty, and functional, and in general it works. And you get ILife, which is a nice piece of ‘family’ software. Out of the box, it goes, and goes well for family. Right from the start, no effort. No linux, I need to download some stuff to do something, no MS, what the hell is all this extra rubbish on my computer. Just works.

Apple understand that the honeymoon period for computers is over. People won’t put up with it being hard, because its new and cool, and lets you do new things. Apple understands that “computer” doesnt mean “hardware”. It means “software”. To sell computers, you need to sell software. And software does not have sub-categories of “applications” and “operating system”. Software is only the applications and how you start them up.

Apple understand that people don’t give a crap about an “OS”, or “Applications”. People don’t know the difference between hardware and software (geek terms that are meaningless). People just want it to work. Apple are a hardware company that understands that the only thing that sells hardware is software.

Could MS come back? Bundle some great software? Sure. People write great software for windows. But I think the horse has bolted, as witnessed by Vista. Vista took too long, and delivered too little. There doesnt seem to be a lot of radical thinking there. Steve Ballmer doesnt seem to know quite what to do in the face of google/apple/facebook/the internet in general. In the interim, SaaS will get more of a foothold. Pricing and payment will become simpler. And unless MS reinvents itself, it will lose.

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why apple wins.

One thought on “why apple wins.

  1. I think the real problem for MS is that the desktop PC market isn’t really going anywhere while other technology areas are quickly pushing ahead.

    On big machines MS can’t compete. Nobody wants or even could run their bank on a PC with Vista. Below on smaller server MS is having a very hard time against linux machines which hold a big chunk of the market. People talk a lot about desktop linux, but that’s tiny, perhaps 2% of the market. But back room server running a DB or web server or mail server etc., it’s more like 30% or 40% of newly installed machines.

    Then there is gaming. PCs used to be the centre of the gaming world… but that’s moved now to consoles. MS saw that and are trying make money in this area. While their market share is good last I heard they weren’t actually making money.

    Then there is the fact the PCs and laptops keep on getting cheaper. That puts price pressure on the whole market including software.

    There is the shift down even lower. MP3 players, cell phones, blackberries etc. Apple does well here but MS doesn’t.

    Then in the internet advertising and search space they are far behind Google.

    Thus, even if they could stop bleeding a few percent a yet to Apple on the desktop, the desktop PC is no longer the centre of the tech market that it was 10 years ago. This greatly reduces their importance.

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