Microsoft Agonistes

Microsoft has very little territory on which to fight. In fact it almost feels as though the game is already over. It has no direct retail footprint and it doesn’t do hardware. It even suffers from the indignity that while you can run Windows under OS X, you cannot run OS X under Windows. Because of virtualization, Windows has become a Mac app for running legacy PC applications in the Mac world – and the Mac world is currently expanding at 3 times the rate of the Windows world.

It’s possible that the recession will make a difference to this, that the consumer will sicken of Apple and perceive the PC as being the vehicle of value in the computer market. Apple’s diminished stock price indicates that some investors certainly take this view, but to be honest, I don’t see that happening.

Apple’s computers aren’t actually much more expensive if you compare like-with-like. At the top end (the Mac Pro) they are cheaper than competitive PCs and even the laptops are only 10-15% more expensive. Apple chooses its price points for quality and always has done. However, it could choose to sell at lower price points if there was a business necessity.


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