photo from virtualization.comSteve Ballmer. It must be lonely at Microsoft these days, what with just the red ring of Death xBoxes and stacks of Zunes to keep you company. So you'll give the man a little benefit of the doubt. Well, we could give him the benefit of the doubt, but he's proven himself capable of saying ridiculous things for years now.
This time around, Ballmer brings us this chestnut: "Paying an extra $500 for a computer in this environment -- same piece of hardware -- paying $500 more to get a logo on it? I think that's a more challenging proposition for the average person than it used to be."
So let's break this down. First, we here at TDL are acutely aware of the "Apple tax" as it's known. It manifests itself in a lot of ways, like RAM that costs two or three times what it does from other vendors, or hard drive upgrades with the same ridiculous markup. And yes, there are pricey machines like the new Mac Pro that won't make a lick of difference for the work that 90% of us do on computers. But guess what? That other 10% appreciates and needs the power that upgrade brings.
And yes, there are holes in the product lineup. Yes, there should be a product to compete with the netbooks. Let's not forget what happened with the iPod and iPhone though: neither was the first product in its category. Apple has a habit of letting the dust settle, then blowing the doors off whatever is left. If Netbooks continue to be laptop replacements, you can bet Apple will be there. No, maybe not as fast as we'd like, but we'll probably love what they do.
Also bear in mind, this is the same Ballmer who said no one would buy the iPhone. How's that working out?
There are pricing problems at Apple, but guess what? They can all be resolved with a few slashes in price, and a few models to fill the gaps. Apple's problems are fixable. I don't think the same can be said of Ballmer and Microsoft.