The Sky Is NOT Falling, No Matter What Ballmer Says

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.

Ten Reasons Microsoft Retail Will Fail

We put our heads together to bring you this list. As former Apple Retail employees, I'd like to think we have some perspective on what works and what doesn't with Apple's retail initiative, and why Microsoft can't hope to do as well. Let's Dive In...

#10. No fanatical fanbase. Yes, there are people who love Microsoft products. But we're talking about a different kind of fanaticism here. We're talking about the type of thing that spawned two Apple-fan movies this year alone. We're talking about people camping out for days before a store opens. Sorry Microsoft, your fans just aren't that wild for your products. Perhaps a possible exception for the xBox. There's a difference between loyalty, and being locked into a system.

#9. No Genius Bar Equivalent. Barring a major shift in how Microsoft handles customer support, there's no way they can create an equal to the genius bar. There are far too many different systems with far too many configurations. People can call Microsoft from the comfort of their home and be told they need to call Dell/Acer/Lenovo for their problem.

#8 No Product To Sell. Microsoft, you don't make computers. It sounds like you won't be making phones either. So that leaves you with Windows, Zunes, optical mice, and xBox consoles. An xBox is easy enough to find. I think everyone who wants a Zune has found one. I don't think people will be lining up to buy mice, and last time I checked, finding a copy of Windows to buy wasn't very difficult.

#7 Alienate Partners. Apple has managed to keep and even grow relationships with Best Buy, Wal Mart, etc. while increasing their own retail presence. Microsoft might be able to keep those same channels happy, but what about hardware makers? Will Dell be thrilled to see Lenovo laptops in the Microsoft store? Would HP be welcome? How do you appease the people who actually make the hardware your OS runs on, if presumably some computers will be present in the store?

#6 Products Aren't Sexy. In the early days, the Apple Stores brought people in simply by the stunning design not only of the stores, but the products as well. These were exciting and new shiny objects that many had never touched before.

#5 What Comes After Windows 7? You could almost sell me on the idea of Microsoft showrooms for Windows 7, and Windows 7 alone. Microsoft seems pleased with the results of their "Mojave Experiment," so I can imagine them wanting to get more people to see/play with their new OS. If you build a store around that though, what do you do after the OS is released and everyone who wants has had a chance to try it?

#4 Dress for Success? Close your eyes. (well finish reading this first...) You've just walked into your local Microsoft store. How are salespeople dressed? Do they wear khakis and polo shirts, leaving you to think you've accidentally stepped into a Circuit City (how's CC doing, by the way?) Do they wear t-shirts and jeans in an attempt to look just like the Apple employees? Do they wear some sort of cheeky Geek Squad-esque costume/uniform?

#3 The Economy. There are two types of computers selling right now: Macs and netbooks. Apparently in bad economic times, some people look for the best value/quality for their money. Those people are buying Macs. Others look for the bare minimum to get by. Those people are buying netbooks. Where does that leave Microsoft? No Mac ships with the Windows OS. Many netbooks use a flavor of linux, and those that do use windows, use XP, or seem to almost begrudgingly have Vista installed. So Microsoft, are you going to try to convince the value shoppers that they need a bigger, more expensive system, or will you try to talk Apple shoppers down to a cheaper computer, a computer which you most likely won't even have in store? Or maybe, just maybe there will be a Mac in there, running Windows 7 through Boot Camp... Hmm... we might have to re-think this whole thing...

#2 Bill Gates is Gone. If Gates had launched this initiative while he was still at Microsoft, maybe, just maybe it would fly. He would've brought a certain geek cred, and he always had a vision of where computing was headed. Sometimes right, sometimes wrong, you always knew he had a vision. I don't know what Microsoft's vision is these days. Apparently it's to look at what Apple's done in retail, and copy it. Which brings us to...

#1 Apple Already Did It. You cannot beat Apple for store design. You cannot beat Apple for buzz in a mall environment. (tangent: one of the secret strengths of Apple is the relationship building it does with other mall tenants. The traffic the stores generate benefits everyone.) Apple has created a formula that while imperfect, cannot be perfected by Microsoft. You don't think the same way. Any company selling an OS in no fewer than five versions cannot be expected to simplify or improve the retail computer shopping experience.

Microsoft, You Can't Be Serious About Retail, Right?

David Porter, VP of Retail Stores for MicrosoftA few weeks ago there were some concept photos of Microsoft stores floating around. We were quick to dismiss any chance of a Microsoft store making its way to a mall near you. However, yesterday may have changed everything. Yesterday Microsoft announced David Porter would be holding the position of corporate vice president of Retail Stores. 

Among other jobs Porter worked at Wal Mart for 25 years. This story practically writes itself from the press release: 

“I am excited about helping consumers make more informed decisions about their PC and software purchases, and we’ll share learnings from our stores with our existing retail and OEM partners that are critical to our success.”

Defining the time frame, locations and specifics for planned Microsoft-branded retail stores will be Porter’s first order of business.

I'm sure if Microsoft actually gets to the point that they have stores opened, and those stores are even modestly successful, I don't think they'll be sharing that information with other partners. Call me cynical, but I just don't think it's in their DNA (or Apple's for that matter).

The big question though, is what exactly would these stores sell? Microsoft doesn't make computers. Will they risk alienating certain partners by choosing some brands over others in the store, or will the store simply offer accessories, like Microsoft mice, and everyone's favorite, the Zune? 

What benefit does a Microsoft store bring the consumer? Unlike Apple, who could show potential buyers what makes the Mac/iPod/iPhone so special, what will Microsoft showcase when they don't make the hardware? "Here, let me show you how easy it is to use this Microsoft laser mouse!"

I'm pretty sure everybody who wants an xBox can find one, and I'm also pretty sure just about everyone who wants a Zune already got one.

It looks like the only thing they have to gain is the burden and expense of retail stores, and opening them in less than ideal conditions, no less. When Apple opened their first stores, people had little familiarity with the products, and it gave them a chance to try them in a welcoming environment. I think everyone who wants to try Microsoft has had a chance. Maybe that's the real problem

TDL Live This Week: 12/8-12/15

In case you missed it live, here's a look at our weekly roundup of Apple news, presented, as always, in a serious fashion:

Apple deletes Mac antivirus suggestion

http://news.cnet.com/8301-1009_3-10111958-83.html?tag=mncol;txt

Apple removed an old item from its support site late Tuesday that urged Mac customers to use multiple antivirus utilities and now says the Mac is safe "out of the box."
"We have removed the KnowledgeBase article because it was old and inaccurate," Apple spokesperson Bill Evans said.
"The Mac is designed with built-in technologies that provide protection against malicious software and security threats right out of the box," he said. "However, since no system can be 100 percent immune from every threat, running antivirus software may offer additional protection."
Apple's previous security message in its KnowledgeBase, which serves as a tutorial for Mac users, was: "Apple encourages the widespread use of multiple antivirus utilities so that virus programmers have more than one application to circumvent, thus making the whole virus writing process more difficult."
------------

Confirmed: iPhone Coming to Walmart By the End of December, Regularly Priced
http://gizmodo.com/5103986/confirmed-iphone-coming-to-walmart-by-the-end-of-december-regularly-priced
Store representatives at multiple locations confirmed to the publication that employees are training to sell the handset, which will hit shelves by the end of the month. This will make Walmart the second non-mothership retail chain to sell the iPhone, and by far the largest. But what about all the $99 4GB model nonsense? It hasn't been confirmed, and still doesn't sound that likely.

Some analysts still say that the $99 iPhone will probably happen eventually, but others are specific enough to claim that a Bentonville, Arkansas location will sell the discontinued 4GB model in addition to the 8GB and 16GB versions, which have been confirmed at their normal $199 and $299 prices.

-----------

Google Earth Browser Plugin for Mac OS X

http://db.tidbits.com/article/9918?rss

Mac users now have access to the Google Earth Browser Plugin. Some Mac users have been eagerly awaiting the arrival of the plug-in since it was introduced for Windows in May 2008 and for the iPhone in October 2008. The plug-in is compatible with both PowerPC and Intel-based Macs, and works in both Safari 3.1 and later and Firefox 3.0 and later.

-----------------

Microsoft to release 'Softwear' retro clothing line

http://www.macworld.com/article/137391/2008/12/microsoft_softwear.html?lsrc=rss_main

Microsoft says it’s a “clothing line that taps the nostalgia of when PCs were just starting to change our lives,” and that it aims to “showcase the DOS days of the software company that now connects over a billion people.”

----------------------

Argentina-based OpeniMac now selling Mac clones

http://www.macworld.com/article/137388/2008/12/openimac.html?lsrc=rss_weblogs_macuser

Mmeet Argentina-based OpeniMacwho, besides clearly angling for a trademark lawsuit, is also going ahead and selling Mac OS X-based computers at prices that undercut Apple's own offerings.
Well, in Argentina, anyway, as the country doesn't have its own Apple Store, online or brick-and-mortar. But if you live in the U.S., the prices aren't really cheaper than buying a comparable Mac.
The company bills its product line with the tag “Benefits of a Mac. Price of a PC.” Two models are available: the "OpeniMac" is a $990 2.53GHz Core 2 Duo machine that also sports 2GB of memory, a 320GB SATA drive, SuperDrive, ATI Radeon HD PRO, and even a 6-in-1 memory card reader.
--------------

Apple was 5th busiest retail site on Cyber Monday

http://apple20.blogs.fortune.cnn.com/2008/12/07/apple-was-5th-busiest-retail-site-on-cyber-monday/

While its competitors were offering deep discounts to pull in recession-battered customers, Apple (AAPL) had already ended its Black Friday sale and by Monday was back to charging its usual premium prices for laptops, desktops and MP3 players.
Yet its online store still managed to grab the No. 5 spot in comScore’s ranking of the top 20 most visited retail sites on Monday Dec. 1, handily beating not only Dell (DELL) and Hewlett Packard (HPQ), but such full-fledged retail outlets as Best Buy (BBY), Toys “R” Us and Circuit City .

-------------

LEARN SPANISH IN ITUNES U

From Portales: beginner’s Spanish to the advanced A Buen Puerto: Fast Forward in Spanish, you’ll find a variety of Spanish course material from the Open University on iTunes U. And once you’re conversant in Spanish, you could sample the German and French language courses, as well.

--------------

Grey Lines Mar MacBook Air Displays

http://db.tidbits.com/article/9910?rss

Some MacBook Air users have been reporting the appearance of grey horizontal lines across the screens of their late 2008 models. Discussion threads on the issue began in early November 2008 on both Apple's discussion forums and the MacRumors forums. There have been slight variations in the description of the issue, but most accounts agree the lines are grey or white, horizontal or slightly angled, granulated or pixelated in appearance, and are very subtle. Overall the lines are said to give the screen the appearance of a piece of parchment or recycled paper. Also, the lines are said to appear at the initial boot; they do not develop over time.

-----------------

Rosetta Becomes Optional in Snow Leopard?

http://www.macrumors.com/2008/12/08/latest-mac-os-x-10-5-6-seed;-rosetta-becomes-optional-in-snow-leopard/

Separately, we've heard that the newest version of Snow Leopard makes Rosetta an optional installation. Rosetta is Apple's PowerPC emulator for their Intel Macs, allowing Intel Mac owners to run legacy software that has not been upgraded for the Intel platform. This news comes shortly after an announcement that IBM had purchased Transitive, the company behind Rosetta's technology. The final release of Snow Leopard is also rumored to require an Intel Mac, thereby being the first version of Mac OS X to drop PowerPC support.

----------------

Three Apps Define Apple's Mobile Platform
http://blogs.eweek.com/applewatch/content/app_store/three_apps_define_apples_mobile_platform.html

News Commentary. Last week, Apple announced that the App Store had 300 million downloads and 10,000 applications. Three apps matter more.
It's not so much what they do but what they mean. These three applications define App Store, supported by _oc="null">iPhone and iPod Touch, as an emerging mobile platform. Right now, Apple has created the leading contender to replace the PC as the platform people use most.

The apps:
Amazon Mobile

Google Mobile App

Obama `08

Number of applications does not a successful platform make. Volume is important, but the sticky quality of applications/services and the ability to make real money matter more.
All successful platforms share a few common traits:
They have at least one killer application people really want

They make available a breadth of useful applications

Development tools and APIs make it easy to create good applications

Third parties make lots of money
There is a fifth attribute not common to all successful platforms, but unique to some: They make customer engagement easier, a quality that some connected gaming devices/software and some Web 2.0 platforms imbue.

------------
Steve Jobs participating in ad song selection
http://www.macnn.com/articles/08/12/08/jobs.picking.ad.songs/
Apple CEO Steve Jobs is himself involved in picking the songs used incompanyadvertising, a musician claims. Lars Iversen, a member of The Asteroids Galaxy Tour, notes that when "Around the Bend" was chosen for an iPod touch TV ad, a company representing the band -- Synch -- first got in touch with Apple, and then participated in a direct meeting with Jobs. The executive is said to have picked the song to use at this meeting, expressing particular enthusiasm for the music.

-----------
HERE WE GO AGAIN... APPLE TABLET IN 2009?
http://news.cnet.com/8301-13579_3-10118470-37.html?part=rss&tag=feed&subj=News-Apple
Earlier this year CEO Steve Jobs implied Apple was watching small-device categories like tablets and Netbooks to see if they actually take off as a mega-trend, but in the meantime the company had other priorities. Mac tablet rumors stretch back for years, and in the past Jobs has quickly shot down talk of an Apple-produced competitor to Amazon's Kindle, which has been interpreted as a sign Apple was doing just that.

-----------
Adobe and Belkin back out of Macworld, IDG not concerned
http://www.thestandard.com/news/2008/12/08/adobe-and-belkin-back-out-macworld-idg-not-concerned
IDG World Expo isn't too concerned, or so it claims. A spokesperson issued this statement:

While Adobe has decided to shift its focus at for Macworld this year, the company will still be actively participating in the event -- several members of the company's product team will be involved in Macworld tracks, including a full day of CS4 demo sessions with Adobe evangelists on Wednesday, January 7.

Every year we see a certain percentage of exhibitors pull out of the event for their own business reasons. In this economic climate, it shouldn’t be a surprise to see this. The important thing to understand is that Macworld Conference & Expo 2009 will be similar in size to last year’s event and attendees will continue to visit nearly 500 great Mac product vendors on our exhibit floors.

NXE Kills ATV

Today Microsoft officially launched their New XBox Experience or NXE for short. This FREE update (are you paying attention Apple?) includes not only a reinvented GUI and a host of new community and game features, but also the much hyped addition of Netflix streaming. We have yet to try it out on our box, but from what we've seen so far it looks to be full of WIN. So for $300 you can now have a multimedia appliance that will play all the music, photos and videos stored on your PC or Mac as well as stream thousands of Netflix titles instantly, oh and it plays a few games too. We can't help but wonder if Apple TV will survive another year.