Microsoft's FUD-filled 'Apple Tax'

1 comment | 2I like it!
October 15, 2008, 08:23 AM —  The Industry Standard — 

No longer content to extol the virtues of Vista to customers in its "I'm a PC" campaign, Microsoft has now raised the specter of an "Apple Tax". This coincides with Apple's announcement of new notebooks Tuesday, with prices as low as US$800.

Interviewed by cnet news, Brad Brooks, Microsoft vice president of Windows Consumer Product Marketing had this comment:

...But, we're also looking at the different things that you can get with Windows, and understanding what is really involved with what we call the "Apple tax."

There really is a tax around there for people that are evaluating their choices going into this holiday season and going forward. There's a choice tax that we talked about, which is, hey, you want to buy a machine that's other than black, white, or silver, and if you want to get it in multiple different configurations or price points, you're going to be paying a tax if you go the Apple way.

Now the fact is that the majority of PCs on the shelves at your local Best Buy are probably black, with the occasional white one thrown in for good measure, so this is hardly an issue. The price points and configurations don't vary all that much. And the sales growth is in portable computers such as notebooks and mini-laptops, up 37% worldwide, versus desktop sales, which declined 4% in the US alone. Mr. Books also mentions an upgrade tax, but that doesn't seem to concern these buyers. They purchase their notebooks off the shelf, and they generally aren't upgradeable.

Mr. Brooks comments that if people want a Windows experience, then they should buy a machine designed for the Windows experience. He then mentions the costs involved in running Windows on a Mac. Yet most customers purchase a Mac for the Mac experience, and not the Windows experience, especially the one where drivers don't work properly, and viruses take over their machines.

I'm writing this on a Macbook using Microsoft Office for the Mac, a copy for which I would have had to pay regardless of whether I used a Mac or a PC. For everything else, the Mac provides equivalent tools. I chose not to run Windows on my Mac. Some people may not have that option; they may use software that requires it. And they will indeed pay a premium for that, but clearly one they are willing to given their choice of machine.

It seems that Microsoft, perhaps somewhat shaken by the loss of market share to Apple, has stopped marketing the benefits they bring to users, and decided to concentrate purely on technology. And they've decided to embark on a campaign of fear, uncertainty, and doubt in order to scare potential buyers away from Apple computers.

Make no mistake about it. Forget Seinfeld and "I'm a PC" -- these are the talking points and the opening salvo of the real Microsoft marketing campaign.

» posted by ITworld staff

The Industry Standard

Larry Borsato has been a software developer, marketer, consultant, public speaker, and entrepreneur, among other things. For more of his unpredictable, yet often entertaining thoughts you can read his blog at larryborsato.com.

I like it!
Comments

Microsoft VS Apple

Apple VS PC

Apple has grown to have 10% market share, a number that grows everyday, especially when speaking about Laptops.

I am sure apple has reason to say PC and not Microsoft for legal reasons, but it may be confusing the point.

Is OSX better than Microsoft? Yes and No
Is Apple better than PC? Yes and No, perhaps more no.

Apple ads are impressive, there is no doubt that they have the focus to continue to improve. I laugh everytime I see a new ad, what else can you say? its almost perfect.

OSX is based on Unix (the same thing DOS was based on in the beginning). Unix or OSX are not perfect, they are not safe from viruses, however it is true there are more viruses for Microsoft OSs, why? Market Share.

Apple Computers are easy to troubleshoot. This is because the hardware is controlled. Secondly, there are few options you can follow when you are having problems (which I isnt a bad thing for most people).

Vista is flawed, it reminds me of the days of WindowsME which was the biggest mistake Microsoft has ever made. Perhaps if WinXP didnt need to take the Longhorn Team away from the project to build WinXP SP2 things would have been different. The same team that made winXP a great OS were suppose to be the same guys who were going to make Vista, well, the Devil is in the details (like timelines) and it was a failure. Otherwise we may still be talking today about how XP was a failure and how glad everyone was that VISTA was the stable great system it was meant to be. Perhaps Windows7 will be what Vista/Longhorn was suppose to be.

Apple didnt always have top of the line products, but those days are coming to an end with high end Laptops being released, iphone, Itouch, ipods at the top of their game, who wouldnt think Apple is taking over? but as I said, the choice was simple, if you knew what you were doing, PC was the way... the choices and the prices could not be beat. But... laptops by Apple for under 1000$? even under 900$ hmmm, well, I guess the list of what made PCs better may not be as long as we once thought?

Truth of the matter is, if an EMP destroyed every computer out there, and everyone was in the market to buy a new computer, what would the market share show today? My guess would be that EndUsers using Apple would make up 50% market share, which in all likelyhood most companies on PC based systems would stay as they are (banks, etc).

Getting back to Topic;
Is Microsoft now awake, and will pay more attention to what Apple is upto? Sure.
Is Microsoft going to continue with new ways on to market? Yep
But is Microsoft engaged in a campain of fear, I think you have it turned around. Have you watched an Apple ad?

Microsoft will bounceback or it will fall, PCs will never die as long as Linux/Unix/etc are out there.

My Name is J and I am a PC guy
(PC does not equal Microsoft)








| reply
Free books

Build your tech library with our book giveaways.

Windows PowerShell 2.0 Unleashed
By Tyson Kopczynski, Pete Handley, Marco Shaw; Published by Sams

Windows PowerShell Unleashed will not only give you deep mastery over PowerShell but also a greater understanding of the features being introduced in PowerShell 2.0–and show you how to use it to solve your challenges in your production environment. Enter now!

 

Ubuntu Server Administration
By Michael Jang; Published by McGraw-Hill Osborne Media

Realize a dynamic, stable, and secure Ubuntu Server environment with expert guidance, tips, and techniques from a Linux professional. Ubuntu Server Administration covers every facet of system management -- from users and file systems to performance tuning and troubleshooting. Enter now!

Featured Sponsor

AISO founders envisioned a Web hosting company that was environmentally friendly. While the company employed energy-efficient innovations like solar panels, its infrastructure produced unacceptable power and cooling requirements. Find out how AISO leveraged AMD technology to overcome their challenge in this case study white paper.

In this whitepaper, Scalar explores the opportunity to change the landscape with respect to mission critical databases built around Oracle. Leveraging technologies such as Linux, high-end commodity processing power and Oracle RAC technology to architect, design, build and maintain database infrastructure that delivers maximum availability, reliability and performance at a fraction of traditional cost.

On a typical day, weather.com, the Web site for The Weather Channel in Atlanta, serves up between 15 million and 20 million page views. But in September 2004, when back-to-back hurricanes ransacked Florida, the peak traffic on one day more than tripled: over 70 million page views by more than 7 million unique visitors. Read the full success story now.

More Resources