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February 24, 2009 11:00 AM PST

Ballmer keeps close watch on Apple and Android

by Dawn Kawamoto
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Microsoft CEO Steve Ballmer knows not to blink.

On the desktop front, Microsoft is not discounting the approximately 1 percent market share gain Apple has garnered in the past year, bolstering its position as the No. 4 player in operating systems behind Linux, said Microsoft CEO Steve Ballmer, during a midyear update with analysts Tuesday.

"We're very focused on both Apple as a competitor and Linux as a competitor," Ballmer said.

And concerns regarding Google's open-source mobile operating system Android are not far behind.

"I think the dynamics with Linux is changing somewhat," Ballmer said. "I assume we'll see Android-based, Linux-based laptops, in addition to phones, and we'll see Google more and more as a competitor in the desktop operating system business than we ever have before."

Last month, for example, a report surfaced that raised the question of whether the Android operating system had recently been successfully ported over to a Netbook.

"The seams between what is a phone operating system and a PC operating system will change, so we have ramped our investment in the client operating system," Ballmer said.

And on the mobile operating system front, Windows Mobile ranks third, with Apple's iPhone fourth and Google's Android currently a blip on the radar, but nonetheless a concern for the Redmond giant, Ballmer said.

"The truth of the matter is all the consumer market mojo is with Apple and to a lesser extent BlackBerry. And yet, the real market momentum with operators and the real market momentum with device manufacturers seems to primarily be with Windows Mobile and Android," Ballmer said.

He added he sees competition in the mobile arena occurring on two fronts: one is selling mobile-related software independently from the hardware, which may explain the software giant's reported interest in launching a Windows Mobile online applications store. The other front is a combination of software, hardware, and services bundled together, similar to Apple's iPhone or Research In Motion's popular BlackBerry.

Dawn Kawamoto covers enterprise security and financial news relating to technology for CNET News. E-mail Dawn.
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by chabig83 February 24, 2009 11:41 AM PST
One look at Windows Vista and Windows 7 shows just how "focused" on Apple he is!
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by Seaspray0 February 24, 2009 11:47 AM PST
That's just the skin. Underneath, they are different animals.
by Mr. Dee February 24, 2009 1:39 PM PST
Windows Vista - over 200 million systems world wide
Windows Vista - pre-loaded on 20 million PC's per month

OS X - 25 million machines.
by frankz00 February 24, 2009 2:12 PM PST
I'm still on XP (downgraded twice) because their wannbe Apple garbage disgusts me. If I want a Mac I'll go buy one. I may if Vista and Windows 7 are the future of Microsoft.
by Draxon February 24, 2009 3:32 PM PST
Mr. Dee How many of those machines that are shipped with Vista get upgraded to XP?
by abcd9009 February 25, 2009 11:41 AM PST
Just an FYI, one of the main reason why Windows is so "outdated" as compared to OS X is because unlike Apple, the primary customers for MSFT is corporations. Unlike Consumers who are ALWAYS the first to adopt any new innovation and technology (which also happens to account for majority of Apple's revenue) Corporations don't like to embrace changes that quickly. They like to stick onto the outdated process. In order to cater to these clients, MSFT has to have all products with "backward" compatibility. You can actually run apps designed for Win95 under Vista (it's not just a simple double click to run but it's doable). How far back can you go on Mac???
Apple has the luxury to completely abandom an infrastructure (OS 9 - PowerPC) and recreate a whole new OS (OS X running on Intel). The reality in today's capitalistic society is, corporations trumps consumers which forces MSFT to limit anything new. MSFT tried it with Vista to start from the beginning and everyone knows what the outcome was.
Apple was, is, and will always be only for the niche market whereas everyone (including Apple users) will at some point use Windows (whether at home, or work, or friend's house, or relative, or public place...).
To give an example, MSFT is like the $25K Toyota as compared to Apple which is like the $250K Ferrari. No doubt Ferrari will always win but how many people will buy a Ferrari as compared to a Toyota. Secondly, how many companies would be willing to manufacture out of factory parts for Toyota where they can make more money by volume as compared to making parts for Ferrari. And finally you can upgrade your Toyota for 10 yrs and still end up paying the same price as what the other guy did buying a Ferrari but now your Toyota has all the latest gadgets because you upgraded and I don't have to mention 10 yrs in technology years is like a century in human life.
MSFT is actually helping the economy because if it wasn't for Windows, the third party vendors would be out of business. For every one app on Mac there are at least 2 equivalent apps for Windows and unlike Apple, MSFT doesn't force you to buy hardware only from HP or DELL. You are free to buy it from ANYONE - EVEN BUILD IT YOURSELF.
I am not saying Windows is the best OS, and neither is OS X. The best OS in the market today is Linux not because it's Linux but because it's OPEN SOURCE. You can do whatever you want and IT'S FREE. However, Linux inspite of being the best OS - it's just not practical to distribute Linux to everyone because except for the geeks or the programmers an Avg Joe has no clue what's the command to install or run when he can just click on Windows or Mac to do it. Granted alot of apps you can click and run/install on Linux but everyone would agree with me on this, it's not as User friendly as Windows or OS X.
by Inconnux February 27, 2009 6:36 PM PST
Mr Dee you forgot that 80 MILLION of those Vista systems were business systems that didn't activate their license... they installed XP instead...
by Penguinisto February 24, 2009 12:05 PM PST
Err, where did Ballmer get the "fourth" figure for the iPhone... from 2007?
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by Vegaman_Dan February 24, 2009 12:42 PM PST
These are all nice observations, but doesn't not state what actions are going to be taken as a result. Did I miss that in this report?
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by jonniesavell February 24, 2009 4:15 PM PST
Ballmer keeps close watch on the pitch as it sails by ...
by jean.luc.picard February 24, 2009 1:16 PM PST
As Gretzky said: "I don't look at where the puck is but where it's going to be." Microsoft is looking in the wrong place.
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by sanjayb February 24, 2009 1:58 PM PST
ENGAGE!! :-)
by The_happy_switcher February 25, 2009 10:39 AM PST
Microsoft look more like Patrice Bergeron after getting hit from behind and concussed.
by t8 February 24, 2009 3:31 PM PST
I am looking forward to Android. In my opinion, there is no buzz with Windows Mobile.
It will also be interesting to see how Open Source Android does against it's competitors given that Open Source hasn't had such a big brand promoting it like we see with Android.

Also, the future PC is a phone. Just dock it when you want a bigger screen and keyboard etc. This fits with an OS that is Internet centric more than an OS that gives you Internet capability.
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by shootthecops February 24, 2009 5:17 PM PST
all google needs to do is get apps for its brand of linux! it will come slowly, but adobe and other players will make deals with google
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by cmcginnessCNET February 24, 2009 6:26 PM PST
I agree.
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by shelloil February 25, 2009 4:12 AM PST
10 years from now Linux and Mac will be standard kit.
Ballmer and Microsoft lost the plot after XP.
Apple runs on a UNIX platform and Linux is cheap and dynamic.
Windows suffers heavy excess baggage coding and is doomed to be a follower.
I don't know what the "code monkeys" drink in Redmond but regardless they need to start over and hire Apple staff..not that Linux or Apple coders want anything to do with Microsoft.
Microsoft is yesterdays legacy tech at tomorrows prices....
Windows mobile.please don't get me started how c£$p that is..anyone remember HP Jornada.rubbish
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by Gorbag February 25, 2009 7:03 AM PST
I pretty much agree with this sentiment - I think of OS X as a kind of higher end unix, and linux on the lower end in the same terms one might discuss BMW and honda - yes there are engineering differences, but in principle they are more similar then different - they just go after different segments of the market. Windows is more and more the odd man out; makes less and less sense for science, engineering, etc. at best it's a ubiquitous platform for email and office productivity programs, and that market is going to web services and browsers. Why bother with M$?
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