Microsoft aims to match Cupertino's retail glitz
Microsoft has been keeping rather mum on what to expect from its new retail stores, but sources tell CNET News to expect lots of flashy monitors, fancy PCs, Surface table-tops, as well as a giant display.
The outlets, which will be called simply the "Microsoft Store," closely resemble the mock-ups that leaked earlier this year, according to one source. They also borrow some of their design cues from Apple's retail outlets, including an "answer bar" that seems to closely mimic Apple's Genius Bar.
The stores will sell PCs from some of the leading brands, showcasing what Microsoft sees as some of the best models Windows has to offer, with mostly high-end models such as Dell's Adamo. However, there will be PCs in all price ranges, including Netbooks, sources said.
In addition to PCs, there will also be sections for other Microsoft products such as Windows Mobile and Xbox.
Microsoft confirmed its plans to enter the retail market earlier this year, hiring Wal-Mart Stores veteran David Porter to lead the effort. The software maker later said it would open two stores this fall, with more to come next year. The first two locations are in Scottsdale, Ariz., and Mission Viejo, Calif., and are both set to open this month, sources said.
In Mission Viejo, Microsoft will be in the same complex as one of Apple's stores.
The Microsoft outlets won't have cash registers, instead using handheld devices to ring up customers. There will also be lots of ways to personalize various products, according to sources.
Microsoft also has an online Microsoft Store that sells directly to consumers and is also opening a "Windows Cafe" in Paris on October 22--the same day that Windows 7 launches.
A Microsoft representative declined to comment on the retail stores beyond saying that the stores are on track to open on schedule.
During her years at CNET News, Ina Fried has changed beats several times, changed genders once, and covered both of the Pirates of Silicon Valley. These days, most of her attention is focused on Microsoft. E-mail Ina. 
wow, 4 mp3 players, 10 overpriced computers that "never" break (hence the genius bar), and ONE cell phone.
SNOOOOOOOOOZE......
Sometimes you Apple fanboys just make it too easy.
Match, not supersede, not overdo, but match. What is so interesting about a company AIMING to match a competitor? This is why most of the iPhone competitors tanked because they aimed to match what the iPhone does, not do it better. Palm Pre has aimed to supersede the iPhone (ability to multitask with applications), which is why that has so much attention.
This article even contains a graph about how there won't be any cash registers - many stores, including Apple, already have this implemented with the EasyPay system.
You sound dumb criticizing a store that is one of the most successful in terms of innovation and efficiency with an offhanded "snooze." Go look in an Apple store, it's never a snooze. Tool.
maybe thats all they need in there product line up !!!
Last I checked Apple is reporting Record profits each quarter
while the rest of the industry is still struggling ,eg-: Dell
You MS Drones need to crawl back to reality sometimes !
first of all, what iphone competitors have "tanked" because they tried to match? If i am not mistaken almost EVERY touch screen phone for the last three years have superseded the iphone simply because the iphone was built well, but with the tech level of a phone from 2003 (no gps, no 3G, no Bluetooth streaming, No tethering, No MMS, no Real Business intergration). You need to do a little more research before you make silly and completely unfounded claims. and honestly, you think the multi app feature is the only thing that makes the Pre unique, How about the fact that it launched with every feature that the iphone has plus everything that it does not.
The apple store store may be successful, but it is far from innovative. They only thing that is innovative about it is making their EXTREMELY limited inventory look sunstansive.
Also Seven, you REALLY NEED TO DO LITTLE BIT MORE RESEARCH before you make unfounded claims your self...because according to fortune magazine, Apple isnt even in the top twenty most profitable companies (but Microsoft is).
Its not even in the top most most profitable retail outlets. Thats not to says that their customer service isnt good, but when you only sell a totally of 14 core items with one OS, its pretty hard to make mistakes. So all of you apple tools can shut up here is the list of top 72 fortune 500 companies. tell me when you get to Aplple.
1 Exxon Mobil
2 Wal-Mart Stores
3 Chevron
4 ConocoPhillips
5 General Electric
6 General Motors
7 Ford Motor
8 AT&T
9 Hewlett-Packard
10 Valero Energy
11 Bank of America Corp.
12 Citigroup
13 Berkshire Hathaway
14 International Business Machines
15 McKesson
16 J.P. Morgan Chase & Co
17 Verizon Communications
18 Cardinal Health
19 CVS Caremark
20 Procter & Gamble
21 UnitedHealth Group
22 Kroger
23 Marathon Oil
24 Costco Wholesale
25 Home Depot
26 AmerisourceBergen
27 Archer Daniels Midland
28 Target
29 Johnson & Johnson
30 Morgan Stanley
31 State Farm Insurance Cos
32 WellPoint
33 Dell
34 Boeing
35 Microsoft
36 Walgreen
37 United Technologies
38 Dow Chemical
39 MetLife
40 Goldman Sachs Group
41 Sunoco
41 Wells Fargo
43 United Parcel Service
44 Caterpillar
45 Medco Health Solutions
46 Pfizer
47 Lowe's
48 Time Warner
49 Sears Holdings
50 Safeway
51 Supervalu
52 PepsiCo
53 Kraft Foods
54 Lockheed Martin
55 Hess
56 Best Buy
57 Cisco Systems
58 Johnson Controls
59 FedEx
60 Walt Disney
61 Intel
62 Sysco
63 Honeywell International
64 Sprint Nextel
65 Enterprise GP Holdings
66 GMAC
67 Ingram Micro
68 Comcast
69 Northrop Grumman
70 News Corp.
71 Apple
72 CHS
So the lesson here is that just because you FEEL that a brand you enjoy is the dominant figure in the market place doesnt mean that it is. The fact of the matter is that if you put Apple (number 71) against Supervalu (number 51) supervalu would win, and they dont have any of the "giltz" in their stores that apple has. And Supervalu has never been on the edge of failure (including getting a bailout from Microsoft http://en.wikipedia.org/wiki/History_of_Apple#The_Microsoft_deal because i know you won't believe me) like Apple has.
The fact of the matter is that there is nothing wrong with trying to emulate a business model. Wal-Mart has dont it and it has crushed the competition (i am in NO WAY pro-Wal-Mart). but the only reason apple is profitable is because of the OBSCENE mark up on its merchandise.
So you guys just keep on trying to sell people on how incredibly great and powerful Apple is, eventually people will see the truth about it.
Yet, all you guys can see with your blinders on is "Apple the Almighty" who only innovates, is nothing short of perfect, and can do no wrong. Both companies have created some wonderful products that have sold in the millions through innovation and coping. Try being a little more understanding of the way the world really works and your comments will carry a lot more weight.
Nice strawman... hope you didn't spend too much time building it, because it can be burned down so easily:
How about you explain why a company whose main product only has 8% of the market, compare like this against a company whose main product has 89% of that same market:
http://www.wolframalpha.com/input/?i=msft+%2B+apple
Profitable retail outlet is different from Fortune 500. You made the wrong list. Second an obsene markup doesn't explain Apples success. I could explain it but...you need to figure this out. If Dell tried that strategy they would tank (worse than they are). You have some of the right ideas, but your logic is using the wrong tools to make your case.
Nice book of matches. Shame it is, like your argument, soaking wet.
You are correct about ONE aspect of the market share, unfortunately you are DEAD wrong when you look at the bigger picture. according to a recent survey %12 percent of US homes have An Apple computer, however 85% of those homes also oh a Windows PC (http://www.pcpro.co.uk/news/352213/im-a-mac-and-im-also-a-pc). maybe thats because Apple users can afford more computers and realize that Macs are really not that good for most applications and don't work with most software and have to supplement it with a real computer, maybe its something else, but those numbers dont lie, Market share doesnt have ANYTHING to do with functionality.
I dont know why you would feel the need to try to quote market share to someone that does their home work, but if all you are doing is grasping at straws, then go right ahead.
Nice job NOT reading what i wrote. i stated in the paragraph BEFORE the F500 list that "not one of the most profitable companies". You are right that maybe the F500 list isn't the best way to make my point and maybe i should have listed the most profitable companies...so let me know when you get to Apple...
Rank Company 500 Rank
(millions)
1 Exxon Mobil 1 45,220.0
2 Chevron 3 23,931.0
3 Microsoft 35 17,681.0
4 General Electric 5 17,410.0
5 Wal-Mart Stores 2 13,400.0
6 Johnson & Johnson 29 12,949.0
7 AT&T 8 12,867.0
8 International Business Machines 14 12,334.0
9 Procter & Gamble 20 12,075.0
10 Hewlett-Packard 9 8,329.0
11 Pfizer 46 8,104.0
12 Cisco Systems 57 8,052.0
13 Merck 103 7,808.4
14 Philip Morris International 93 6,890.0
15 Occidental Petroleum 98 6,857.0
16 Verizon Communications 17 6,428.0
17 Coca-Cola 73 5,807.0
18 J.P. Morgan Chase & Co. 16 5,605.0
19 Oracle 113 5,521.0
20 News Corp. 70 5,387.0
21 Intel 61 5,292.0
22 Corning 414 5,257.0
23 Bristol-Myers Squibb 120 5,247.0
24 PepsiCo 52 5,142.0
25 Berkshire Hathaway 13 4,994.0
26 Altria Group 160 4,930.0
27 Abbott Laboratories 80 4,880.7
28 Apple 71 4,834.0
May ideas are correct and so is my evidence. even though apple is is in the top 30 for profitability they still have ALOT of catching up to do to get to Microsoft...or even HP and IBM.
...that Apple is making money hand-over-fist in spite of it being smaller - that is, financially they're punching at well over their weight. Coupled with Microsoft's losses and financial stumbles earlier this year, it pretty much destroys what little argument you thought you had (that Apple is somehow less profitable than Microsoft, etc etc).
And no, using a list based on last year's stats and cherry-picking the boundaries ("top twenty"... gotta love it) isn't really helping you much. ;)
By the way - I was curious about something. In light of your claims, how is it that all these iPhone competitors (Android, RIM/Storm, Palm Pre) aren't really outselling anything but the faltering Windows Mobile based units, but still supersedes the iPhone, in your estimation? When you compare the sales numbers (even within the time boundaries of the Pre's existence), the iPhone trumps them pretty handily, and is still growing by astronomical numbers. Care to explain how being an also-ran "supersedes" a market leader?
You could have been expressing a (subjective) technical opinion, which is fine, but you inserted it into a morass of financial opinions, which erodes your argument badly. Maybe you should've made that clearer.
"...unfortunately you are DEAD wrong when you look at the bigger picture"
Ah, the "bigger picture". Is this the part where you gaze into the distant horizon and dispense wisdom? Let's see what you're aiming for.
"according to a recent survey %12 percent of US homes have An Apple computer, however 85% of those homes also oh a Windows PC (http://www.pcpro.co.uk/news/352213/im-a-mac-and-im-also-a-pc)."
...and this is relevant to a corporation's financial performance - how, exactly? We've already established that Apple had the smaller market share (which is why your assertion that Microsoft was oh-so-profitable compared to Apple is pretty absurd, considering the numbers I pointed you to). Belaboring the obvious isn't helping your case any.
GM sells far more cars than BMW, yet GM is the one fighting bankruptcy. Microsoft is larger than Apple, yet on a per-unit basis, Apple is making far more money (including that aspect of money known as "profit"), as proven by the handy little link I provided.
Long story short, size does not equal profitability - Quot Erat Demonstrandum.
Oh, and let's return to your gaze, shall we?
When you roll back to 2000, Apple had a 3% market share in US homes (if even that), and Microsoft enjoyed a 95% share by most estimates of the time. Your own provided numbers show a 12% Apple share. Microsoft is down to 89% by most estimates. I'll make this simple: One company is growing, while the other is shrinking. Guess which would be which? ;)
Throwing around an unsupported supposition as to why most Mac households also have PCs in them is also rather illogical. Let me provide one that actually makes sense: Most Mac users are new to Apple, as evidenced by Apple's relatively recent growth in the market. This means that people who went out and bought a Mac likely already had a PC. Again, QED - if you move from PC to Apple, odds are excellent that you're not going to throw out your PC in disgust the very next day. You're more likely to give it to your kids, keep it around until you transition your stuff to the Mac, or just simply keep it around for games and such.
I have two Macs at home (one of which is a Hackintosh, the other a dual G5 PowerMac), and yet I also have PCs at home as well. Why? Because a lot of them are certainly reusable, and they run Linux and FreeBSD very nicely (there's exactly one Windows-based PC at home - my missus' old XP-based laptop, which happens to require the most repair and maintenance?) Now, I doubt that the masses would do the same, but you imply an attitude which simply has no support.
HTH a bit.
It isn't in a retailer's best interests to sell something that customers obviously (and demonstrably) have no desire to buy. ;)
They have tried for years to copy Linux and Apple and have failed.
Expect an imitation of the Apple Store, down to the last detail possible, with the MS logo and garish windows colours applied liberally... similar to the imitation of the Macintosh OS to create windows back in the 80s, and continuing right up to today. Just add MS logo and garish windows colours and induce retina strain.
Still, imitation is the sincerest form of flattery as they say, so any success for the MS stores will provide a sense of smug satisfaction on some level anyway for Apple.
Bring sunglasses.
Gateway had retail stores long before Apple ever thought of doing it. They were very successful for quite some time, but they ultimately lost out because you couldn't take home what you bought immediately and to a lesser degree to Dell's online strategies.
Design concepts for retail stores and displays are all taught in colleges and you are expected to understand and follow the successful ones or expect to lose your job. I'm also sure you're not visiting retail enthusiast sites slamming them for copying, so what is the issue here? Think about tthat for a second and hopefully you will see the error in your ways.
Also wheres the touch screen computers?
or natal .. nope not that either at an apple store....
hey wheres apple's Xbox equivalent.. oh thats right.. if it doesnt run on an iPhone its not a game.
wow.. i get to see more than 1 kind of mouse and keyboard?! oops thats not the apple store
music subscription service? oh no not that either...
... i'm getting tired of this but i can keep going and going.. on account thats just the frivolous technology MSFT has over Crapple.. because in the Apple store theres no business area is there..
Be sure to send all your great ideas to Redmond.
That's not at all what happened with the American Car Companies. Toyota followed GM's model better than GM did. The Japanese followed an Americans published advice on quality while US companies didn't. I remember a business proff holding up the book and banging on it while making his points about quality control. Meanwhile American car companies seem to have a long tradition of bean counter corproate culture and not a culture that while in it to make money, loves to build cars and builds cars for the love of it.
Unless, of course, Ballmer steps down and someone with a brain takes over.
Lipstick on a pig. A new logo for Wal-mart. Shiny new stores for Microsoft.
They just don't get it.
Nope, Walmart isn't successful at all, are they?
Wal-Mart make no pretense at all - they're in it for the bargains, and Wal-Mart's target phrase for their goods can be summed up as: "cheap but usually serviceable". Who else did you think had sold all those craptastic Packard-Bell PC's in the late 1990's?
You emulate Wal-Mart when you're selling basic-grade commodities in volume (e.g. diapers, pajamas, vacuum cleaner bags, groceries, etc). You do not want to emulate Wal-Mart when you're trying to sell high-end computer gear.
I dislike Microsoft with a passion and avoid their products at all costs. That said you are not giving them enough credit. They make good products and if they don't they pay attention make adjustments and get it right down the road. While the Zune may not be an iPod killer it's now the better MP3 player. They do that with about everthing they work on.
Capitalism is NOT a spectator sport, as some would like us to believe. All those who work in this country should be able to support themselves on what they make. Barely half of us do. What's wrong with that picture?
I agree with Splashes. MS should get off their high horse and get down with the redwood deck and chintz curtains. The audience they seek in the home computing world cannot understand anything else.
Ok Glen Beck whatever you say... Be sure and send me an invite to the militia get together next weekend. I can't wait to overthrow the goverment! Who cares if our facts are skewed or irrelevant.
Are you actually claiming that walfart does not mistreat and underpay its employees?
I don't really find a reason to go to a MS store when I can take a trip to best buy, which is closer and look at a bigger selection of PCs and 360 stuff along with other electronics.
Even if Microsoft had their own "Genius bar", most people are already comfortable with using Windows and know the OS pretty well so there is no reason to visit one.
The only way i can see MS recieving some buisness is if they have competative prices for Zunes, 360 stuff, and PCs.
Apple makes some serious bank off of selling computers as opposed to just software... I can see Ballmer looking at that success with more than just a little corporate envy.
Never happen... MSFT is almost entirely channel driven, meaning they live by virtue of their partnerships.
this is why Apple and MSFT are so fundamentally different:
Apple must remain a proprietary platform to maintain any semblance of profitability in the PC space, they leverage their exclusive platform to ensure as tight of an experience to sell reliability while subsidizing their SW cost by uber high margins on hardware.
MSFT must sell through the channel to gain maximum exposure to all HW that can run their OS, they can only grow by expanding platforms. this is why MSFT will not make their own platforms like a iPhone or computer.
Imagine the reprecussions of entering the cut-throat PC market where you have the likes of HP,Dell, Asus, Acer and the Laptop lot as well.. not to mention the antitrust that would immediately start out of Europe... dude they had kittens over the stupid browser what would they do with a entire MS machine!? only Apple can get away with a completely closed system.
Apple users really had no place to retail buy a Mac. Apple then was getting frustrated try different retail venders and decided to do it themselves.
Microsoft is doing the store just because Apple has been successful. This is the reason why they will fail (paraphrasing Yoda right there :) ) .
I really can't see the Microsoft Store strategy working unless Microsoft started to build its own hardware -- of course it would alienate it's partners even more (like Microsoft did with the Zune while promoting "Plays for Sure").
- I actually think their "answer bar" will be busy. Real busy. Extremely busy. Too busy.
But anyways, how about folks wait until the stores open before mocking them? Won't you look silly and ridiculous if it turns out that the store idea is successful.
Re: wait to mock, I don't wait to see the next George Lucas movie before I mock it.
The only other 'company stores' that come to mind, other than Apple's
, would be the Sony stores. The people I saw in the San Fran store were kids playing with the PlayStations. It's closed now.
I guess they would be helpful if there's no BestBuy around, but that's unlikely. If the hired help has a clue, the Answer Bar might help folks with software questions.
Yeah... after the Penguinisto/Random_Walk reveal I was wondering how many of these "Apple fanboys" are really just alternate accounts. It would be interesting to analyze the IP addresses relating to CNET comments.
What's even more interesting is at least some of the accounts seem to be connected to CNET itself... i.e., they've exhibited behavior that us "normal" users can't perform.
@splashes Occams razor says the simplest explanation is often the right one. In this cae that's "MS wants to make money at this". Not "MS wants to copy apple"
Unlike Apple, MS has to compete with Walmart, Best Buy, Amazon, New Egg, etc.
It is yet another me-too idea from MS that they don't know why they are doing it.
I am not an Apple fanboy either.
I just love the Web.
I am a fan of whoever makes the Web better.
This is why I mock Microsoft.
They have never understood the Web and never will.
Unless they get a whole lot of new people at the top.
Windoze = Boring OS
Apple Store = Epic Coolness
Microsoft Store = Epic Fail
Windows = Same As above.
Apple Store = Cool for the few who have one nearby.
Microsoft Store = we shall see.
Fixed it for ya.
Since when are you a brain dead MS shill?
The me-too MS store is a failure before it starts, simply because it is just a me-too store that must compete with many established retail and web stores.
they are being individualistic!
= One Big LAME
MS is so predictable its sad. The whole company is just.... sad. Can't come up with anything on their own. EVER
Customer: My iPhone doesnt work
Apple Genius: Oh really lets take a look.. hmm.. *stares really hard at the glass looking at self*..then turns on the power.
iPhone: World picture.. booting.. starts normally.. unsliding lock.. looks fine.
Customer: it drops calls alot and my screen goes "Wonky"...
Apple Genius: hmm.. sounds like you need to wipe the phone and reinstall everything.. oh you tried that.. ok let me get you a new one.
Customer: but but but..
Apple Genius: Off you go then.. NEXT (whispers to Co-worker "hey Phil.. how many more we have of those refurbs back there.. oh plenty? groovy...)
- by winstein October 15, 2009 5:23 AM PDT
- Who would buy full price MS stuff at the Microsoft Store anyway? I mean, Apple started the store because places like BestBuy did not want to carry any Apple products. It was the only way for Apple to showcase its products.
- Like this Reply to this comment
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- by heygeo October 15, 2009 10:57 AM PDT
- Apple price fixes though... you cant buy a Mac anywhere for any other price than apple sets... no discounting.
- Like this
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Showing 1 of 2 pages (101 Comments)Can you bring your computer to the store to get it fixed? Will there be a full product line for the users to test drive? Or is it going to be like a Sony Store that just showcase some of the cools stuff, but you still have to order the products somewhere else?
Thats why their store model works so well, they perma gouge you wherever you buy their stuff.
as to bringing in your computer to the store to get it fixed.. uhm.. yeah.. heard of Geek Squad? FireDog?.. hell even the dubiously al-Queda looking fellows at Frys can do this.