Inside Wire: Music to the ears
Posted on Jan 30, 2006 at 8:44am by Jeff Graber
Rumors are circulating the world’s largest software maker is planning to build its own portable digital media device. As their multiple software strategies and alliances have all but failed, building hardware seems like a last ditch effort in the wake of Apple’s continuing triumph. Sheer financial arrogance aside, we’re about to witness a costly Microsoft blunder.
Last time I checked, Microsoft was a major software developer with a history of abandoned hardware projects. Gates has argued that consumers would “prefer a vast choice of devices to the limited selection from Apple”. “Choice” is not a virtue of Bill Gates. Gates is also noted saying they’re not trying to build a better iPod. Here I must agree – as a true American unoriginal, Microsoft wouldn’t know how.
Despite Apple superior technology, Microsoft won market leadership long ago. Now the golden age of digital media convergence is upon us. In this emerging market, Apple has already won. They weren’t the first to make a digital music player, they were the first to popularize it with iTunes. This time Apple achieved market leadership, and more importantly – market power – the position to craft future strategy. So even if Microsoft made the unbelievable happen, they’re not facing the same business reality that once crowned them desktop kings: “when company x owns more than 60 percent of a market, it’s a market leader, nearly impossible to unseat unless they sell their position or go bankrupt.” Case in point: since Microsoft captured over 60 percent of the market years ago. After a decade of trying, the Macs haven’t returned to whip Windows. The Mac continues to be made by Apple for it’s loyal 24 million loyal users. With the advent of Intel as a new partner, Apple will gain a few more million users, but not market leadership.
Moving ahead into the age of digital media convergence, in 2004, Apple owned 52 percent of the market for portable digital media devices.
In 2005, they secured 67 percent—solid market leadership
Beyond 2006, the answer to what percentage Apple will own is quite simple: too much for some gorilla brains to believe
How Microsoft can help itself
It seems Microsoft really doesn’t know how to lose. So here are some things they can do to help themselves:
° Find something positive in the present, ex: “We’ll launch Vista really well!”
° Give each other encouragement for the next market op.
° Take the pressure off winning, and find something fun to do. Ice cream works well here.
° Apple they love them, whether they win or lose.
Macsimum News - Inside Wire: Music to the ears
No comments:
Post a Comment