Week in review: Microsoft too close for Apple's comfort?

Microsoft is moving into Apple's territory and is making no secret of its target.

The software giant announced plans to open its first stores this fall, with at least some of the locations likely to be right near an Apple store. The fall timing is not surprising. One would assume that Microsoft would want to have the stores open in time for Windows 7's October 22 retail launch and for the holiday selling season.

Speaking at the Worldwide Partner Conference in New Orleans, Microsoft Chief Operating Officer Kevin Turner told people to "stay tuned" for more news on the retail front.

"And stay tuned, because we're going to have some retail stores opened up that are opened up right next door to Apple stores this fall," he said. "Stay tuned, just stay tuned."

It should come as no surprise that Apple isn't a big fan of Microsoft's "Laptop Hunters" ads, but some may be surprised to learn that the Mac maker's lawyers reportedly called a senior Microsoft executive and demanded that the ads be removed.

The most intriguing part of Turner's speech was when he recounted a telephone call he says he got from Apple's legal department, demanding that Microsoft remove the ads.

According to Turner, "two weeks ago, we got a call from the Apple legal department, saying, hey--this is a true story--saying, 'Hey, you need to stop running those ads; we lowered our prices.' They took like $100 off or something. It was the greatest single phone call in the history that I've ever taken in business.

Microsoft also announced how much it will charge companies that want to use its Windows Azure cloud-computing service when it is released in final form this fall. The software maker announced a variety of plans, including one that charges purely on consumption and another that offers discounted rates for those that agree to a six-month commitment.

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[Perry_Clease]

Steve do you really believe that someone from Apple called Mr Turner to complain about the laptop hunter ads?

[Super2online]

Do you seriously think that a person with his stature within the company would risk his job with a lie as blatant as that? Especially since the truth could easily be discovered with just a simple call to Apple! I for one am sure it happened.

[Perry_Clease]

"Do you seriously think that a person with his stature within the company would risk his job with a lie as blatant as that? Especially since the truth could easily be discovered with just a simple call to Apple! I for one am sure it happened."

I didn't say that he lied, I think he was either pranked or that it was a joke.

Apple doesn't go after the demographic in the laptop hunter ads. Do the ads work? Apple has had good sales of MacBooks in June http://news.cnet.com/8301-13579_3-10281042-37.html?tag=mncol;title

[rallynochaos]

These computer businesses are sneaky, snake like creatures. They will say anything to each other to try to force the other to comply with their wishes. It doesn't matter if it's legal threats forcing change, attacks through advertising, or personalized requests like this one that appear to be good natured. The underlying motive remains unchanged.

And a Microsoft store? Seriously? I can understand a Mac store because Mac sells its own hardware. The Windows store better have a good array of Windows compatible pc's and laptops (basically selling HPs) or else I don't see a point to this. I hope it's not like a Windows Software store.

[aMUSICsite]

I would not be surprised to find that the legal dep of Apple gave it a try. They do have a reputation of trying to stop anything that could hurt the Apple brand.

Remember the marketing department (responsible for the adverts) and the legal department probably don't talk that much, and this would not be the first time in corporate history where the legal department tried stopping someone else doing something that their won marketing department already does.

I am interested in what MS is going to sell in these stores. Will it just be MS products and software or 3rd party stuff too. I guess the help desk will have the longest queues

[jonniesavell]

If Legal from Apple had called, they would not have said "Hey, you need to stop running those ads; we lowered our prices."

Kevin Turner is making it look ... so difficult.

[wfolta]

"Do you seriously think that a person with his stature within the company would risk his job with a lie as blatant as that? Especially since the truth could easily be discovered with just a simple call to Apple! I for one am sure it happened."

I think another alternative is that the call has been entirely mischaracterized. Perhaps Apple called and said, "Hey, heads up, you're using ads that quote specific prices that are long out-of-date as if they were current prices. We could all avoid some trouble here if you corrected the ads." He then turns around and says they were begging him to stop, using the silly excuse of their pitiful tiny price cut, and MAN that makes him feel good to have Apple running scared!

Apple really can't correct this. It wasn't recorded, so it's a he-said, she-said thing and if Apple jumps in they only sound defensive. I think Turner simply Ballmerized what might have been a lets-keep-this-out-of-court courtesy call. (I believe Apple and MS have avoided open court battles since Steve Jobs came back and famously stated that in order for Apple to succeed, MS did not have to fail. Could be wrong on that, but I don't remember any.)

[Fil0403]

Perry_Clease do you really believe that a COO of a company like Microsoft would made up such a story or that the world's biggest software company doesn't know how to authenticate a phone call?

[cmreyher]

OMG... MS has really lost their way. The market leader is now trying to follow a much, much smaller competitor. They are truly in an identity crisis and have completely taken their eye off the ball.

[empirestatebuddy]

Thou doth protest too much...

[shycelticwitch]

@empirestatebuddy....

http://tinyurl.com/dmxnut

go watch that and then tell me you trust MS. ROFL

[Jamasama]

Have you heard of video editing? They edit out the part when she goes into the shop, because we don't Need to see it.

And stop trying to change the subject.

No... notice that the guy in front of her either walks super slowly, or she didn't even go in.

[bdfin]

Who cares? Let them open all the stores they want. As if every Best Buy, Walmart, etc. etc. don't offer enough computers running windows OS. I'm sure there will be lines of people waiting to get screwed with " Windows 7 ".
Big whoop.

[cs2cdfan]

Yes and the pre orders are selling out from people waiting for the honor. No one cares about "Ho Leopard"

[ddesy]

I'm not even a Microsoft fan and I can tell you that people won't be getting screwed with Windows 7. I tried the beta and the release candidate, and both are better than Vista ever was. For those who choose to go the PC route, Windows 7 serves as a correction to the error Vista was for so many people.

[Seaspray0]

@bdfin. Sounds to me like you're affraid of the competition.

[Scott5673]

But I don't understand, all of you said the Apple stores would go the way of the old Gateway stores once the novelty of them wore off within 1 to 2 years.

[Seaspray0]

I miss the gatway stores. I've always like their computers.

[10092]

I can't wait to see the lines to buy horrid zunes. (yeah right) the one person who actually purchased office legally. and the 50000 people inline for support. 90% of which will be told to contact their hardware manufacturer.

[jessiethe3rd]

I guess I am one that one person... but I actually bought three and hm... it seems to work great with the cheap music subscription service the Zune has along with 10 DRM-free downloads a month (that would make the price for the service roughly 4.00 considering AAPL sells tracks for a buck 10 now?)

Regardless.... the idea is a good one... I am excited to see all the partners that Microsoft can showcase - there are more partners creating cool technology then one can imagine.

[uclapril76]

<<(yeah right) the one person who actually purchased office legally.>>

Gee, if that is the truth, then how is Microsoft still in business?

<<I can't wait to see the lines to buy horrid zunes>>
I had the classic 20gb iPod prior to my current Zune 80. Spec for spec, and experience-wise, Zune is a better product. I am looking forward to Zune HD. I hope the pricing would be competitive to iPod Touch; specs-wise, Zune HD already trumps the iTouch.

[42istheanswer]

Don't forget the average consumer has clue 0 about the difference between Windows OS and Mac OS. To them it's all in the price. Apple should keep pounding away at the quality issue and eventually it will bear fruit. The Mac Hardware/Software combo is way more compelling than an WinTel combo. I've bought and used both. Mac's rock.

[jessiethe3rd]

AAPL's challenge is brand identity. They have a high class brand that they must drive high margins from. Low margin PC/Notebooks wouldn't be something AAPL would be interested in therefore - they have no chance in digging that marketshare deeper after W7 is out. People are going to flock to cheaper and cheaper computers whether netbooks or notebooks - all of which AAPL has no response to.

Also... scale in numbers - HP,Dell,Acer - they all sell a LOT more computers than Apple. The Apple Fad is fading.

Yeah it is. That's why Apple has higher sales than ever before.

[Seaspray0]

Actually, the recent report shows apple laptop sales are DOWN by 12%. Even though the sales are down, they did slighly bump their market share to 8.5%. Next time be informed rather than opinionated.

http://news.cnet.com/8301-17938_105-10288275-1.html

[Seaspray0]

Wow, I was reading the chart wrong on that link. It shows 2009 on the left and 2009 on the right. That means that not only did apple sales drop by 12% but their market share went down to 7.6% from 8.5% last year. Aleast you apple fans will still get some satisfaction that dell laptop sales went down by 18.9%. Acer was the big winner, growing laptop sales by 51%.

[toomath]

Well, the MS ads are incredibly deceptive. For one thing, they have a woman who claims to be a filmmaker go into fries and she doesn't know the slightest thing about what kind of computer she wants....sorry, but if you're a real fillmmaker these days - amateur or not - you know a LOT about computers. You certainly know more than the $8 an hour Frys Guy in the commercial. No questions about stability, available software, etc. It's certainly possible for a fillmaker to choose PC, but I'm fairly sure it's not possible for that woman to claim she knows anything about film editing on a computer...

[viper396]

Yeah...sure....and all the "I'm a PC, I'm a Mac" ads are shining examples of honesty in advertising. You're hypocrisy is obvious.

[wfolta]

viper396: Um, the Apple ads are obviously actors. The MS ads claim to NOT be actors, but actual people. It's like a book that claims to be fiction versus a book that claims to be non-fiction. The difference matters.

[uclapril76]

And Macs being virus-proof not fiction? And the Vista smear not hype? All these ads are just that - ads. There's a kernel of truth in them but they're not entirely accurate.

[themrwhite]

@jessiethe3rd

Umm, last numbers in show that Apple has sold more units than all PC manufacturers combined, get your facts straight before speaking. That was perhaps the dumbest thing said on here so far, not far from others, but you win.

@themrwhite:

okay, I have an Apple and to say that Apple sells more computers than PC manufacturers COMBINED is a completely bizarre statement...and obviously incorrect. Like. Way. Incorrect. Haha.

[Seaspray0]

@themrwhite.

http://news.cnet.com/8301-17938_105-10288275-1.html

You've been owned.

[keegsvdub]

i have been a pc user for almost my entire 23 years of existence and recently bought an apple computer after using them in my job and school setting. I love my apple and the support that goes along with it. if somethings wrong i bring it to the apple store where an english speaking person will assist me.......for the Microsoft store to succeed it better have taking notes on what apple does and they better have a couple hundred techs in the store. Lets face it most computer users start out using a pc because its what schools buy and businesses and maybe eventually people get over the idea that apples are a different language but anyway i think the Microsoft store is just another idea/concept stolen from apple like their op system......

[shycelticwitch]

ditto

[monkeyfun14]

"i think the Microsoft store is just another idea/concept stolen from apple like their op system......"

I know god forbid their be competition who wants that right?

Apple opening a store is hardly original...

Ford has their own stores
GM has their own stores
Chrysler has their own stores
BMW has their own stores.

And these companies were around long before MSFT or APPL

[Kornbeef]

Actually dano, their market share was around 8.5% this past quarter, and its been going up steadily for years. Thats why windows fears them, if it keeps going then one of the greatest things holding people back from buying a mac will disappear. Lack of visibility. Not to mention more software providers will start flocking to apple, as apple has already familiarized them with a trimmed down form of leopard in their iphone. All signs are pointing to increase apple market share which would at worst, help create competition and drive prices lower. So idk why everyones always complaining, let an american company with a good product succeed for once. Windows 7 is sweet, but it still will be half as fast as snow leopard, all the developers I have talked to confirm this.

[sargess25]

by monkeyfun14 July 17, 2009 9:56 AM PDT
"I know god forbid their be competition who wants that right?
Apple opening a store is hardly original..."

another inane posting from Über Troll monkey14, Q: have you ever seen up close a Mac?

[LaTene_Man]

This is par for the course for Micro$oft. They haven't come up with an original idea in their entire history. Why should having retail stores be any different. If it weren't for Apple, Microsoft users would still be using DOS!

[pnosko]

They didn't ask for the ads to be removed as much as corrected for updated information.

Besides, it is much bigger news that MS is concerned about Apple than vice versa.

[shycelticwitch]

::::snicker:::: this is like watching a fight between two first graders. Apple, the geek who gets picked on all the time but still manages to get straight A's.... and the class bully who is big and nasty, but has no intelligence whatsoever and must cheat and lie to get anything above a D. Can you guess which one will go on to have a lucrative career with a comfortable income?

You can't hide from karma.

[uclapril76]

Oh right, Apple is less evil than Microsoft. Right.

It's more like a war between religions with their followers claiming their God is the only God.

Let's be objective here. Each OS has its own strengths and flaws. Apple is no less evil than Microsoft.

[young_design]

I'll enjoy watching all the huge screens within the M$ stores become BSOD's.

[empirestatebuddy]

I'm trying to think of what Microsoft might sell at its stores:

software: Windows, Office, etc
games: Halo, Gears Of War, Flight Simulator, etc.
hardware: Xbox, Zunes (and possibly a smartphone soon)
accessories: keyboards, mice, etc
non-MS branded stuff: PCs, laptops, smartphones, software, games, etc

when you first think of Microsoft, you don't really think about what they could sell in a store, but once I made a list, there seems to be plenty... especially considering that 90% of the world owns a PC.

[viper396]

If you think about it the biggest competition for a Microsoft store won't be an Apple store but retailers like Best Buy and Fry's who also sell PC stuff. If you want Apple stuff you go to an Apple store but for PC stuff there are multiple retailers..

[wfolta]

viper396: I seem to be following you around today...

Six reasons for the MS stores, and none of them involve profit: 1) It's Ballmer Smash-Mouth competition attitude in brick-n-mortar, 2) It's copying Apple, 3) It will show the unwashed masses that they're mistaken about brilliant MS products, and 4) it will be a real-world focus group from which MS and its "partners" will learn what people think, 5) It will allow MS to show home-wide solutions: XBOX controlled by a Zune, pulling media from a Media PC, displayed on an HD screen, and 6) It gives MS something "reasonable" to do with its cash reserves and allows them to look proactive and on the offensive.

Item #5 actually makes sense: computer stores aren't set up to show off an entire line of products -- including products they do not sell -- working together. Item #4 was specifically mentioned in in the article. Item #3 is MS's Vista Undercover ad misleading them.

[shycelticwitch]

This is just more watered down fuel for the rabid MS rats. I wonder if they know their Pied Piper AND his second in command have completely lost their mind. First, The likelihood that this "threatening phone call" to Ballsy we're hearing about ever took place is about the same as the likelihood of any success with Gates "hurricane OS". One of the smartest men in the world and he makes himself look like a basement scientist with this ridiculous claim, and then confirms that he's nuts by filing 5 patents on the idea. His number two guy spews a ridiculous story about a phone call thinking people will believe it. Please pick me up off the floor after I am done having an apoplectic fit of laughter

I wonder if he ever stopped to think that his idea could cause major issues in an already fragile ecosystem? Who does he think he is.. GOD? I hope the government takes the same view on this as I did: Laugh your ass off, pat him on the back and tell him "Bill, when you can manage to get your operating system to work properly, we'll consider letting you play with the scientists.

Gotta go now... i am laughing so hard it HURTS!

[jragosta]

Hint:

Anytime someone starts a story with "True Story", it's not.

[ReasonableGuy]

Typical Microsoft. Announce something months ahead of time. Make it sound like it will be as good as, or better than the competition. Hope that the less savvy consumers will decide not to patronize the competition, because something "better" will come from Microsoft.

Microsoft will make as much profit off of its stores as it does from online search. (Negative profit = Loss)

--

If Microsoft does manage to open attractive, interesting stores. Great. Apple will have to respond to any successful competitive pressure.

Microsoft can sell it's mice, keyboards, and the XBox. It can sell Windows (although not many copies, since most people stick with the version that came with the hardware). It can sell Office, to those who need it.

But whose laptops will Microsoft sell? Dell? HP? Lenovo? Sony? .... Who will it leave out?

[keegsvdub]

''Apple opening a store is hardly original...

Ford has their own stores
GM has their own stores
Chrysler has their own stores
BMW has their own stores.

And these companies were around long before MSFT or APPL''




yes and no......the apple store sells apple computers that sell apple software where you go for apple support......like bmw sells bmw cars where you go or bmw service

the microsoft store is like going to a used car lot where they offer all kinds of makes and models. also why would a company as big as microsoft be going after apple....i could understand the other way around.....and i know this isnt a pc vs apple debate but in my few months of owning a macbook pro...i have had zero issues, it is comparably faster than my gf brand new toshiba pc and needs no virus protection were my gf's pc is allready infected.....

it is my opinion that microsoft has been slacking and they are now realizing it..or maybe they are to big for there own good and maybe they will start making microsoft computers??? i dunno but it will be intreating to see what plays out

[shycelticwitch]

Now that I think about it that wasn't really fair. I would expect that the MS monkeys are smart enough to use nuts and bolts, so let's give them an erector set to build their computers with. Just make sure you collect their tools at the end of the day.

[shycelticwitch]

(Lord) help us all if MS decides to make computers. Given the issues with their operating system, the only thing that comes to mind is a computer made from tinker toys!

[SlimGem]

Apple uses massive quantities of glass in their architecture. I hear Microsoft is going with beige plastic for that retro look.

LMFAO!!! Best comment on here!!!!!!!! HAHA that's so fantastic.

[eric_otto]

The problem with Windows isn't the hardware it is the software lack of stability. So when most people opt out of Microsoft it is for that reason. Usually, Apple software runs much more quickly than Window without hanging up. Sheila will learn. :-)

[Fil0403]

On the other hand, the problem with Apple and their sheep isn't just their arrogance, it is their misconception, misrepresentation, and distortion of reality. So when most people criticize Apple or their sheep it is for that reason. Never did Apple software run much more quickly than Windows and since XP it also doesn't run much more quickly without hanging up. 7 will teach you. :-)