Comparing Microsoft and Apple is silly. Microsoft is still primarily a software and services company while Apple has always been a hardware company - the only reason they're in software at all is to help sell their hardware.
I'm focused on the consumer, because I feel Microsoft wins enterprise by default. Who is the competition? Open source? I've been laughed out of Fortune 50 meetings for suggesting it. Small to Medium size software firms? They just don't integrate with Windows or Office as well. No one in the enterprise ever gets fired for choosing Microsoft. This is changing, but it will take years.
The problem is that the enterprise is a limited field. Once you sell to the Fortune 1,000 there isn't anywhere to go, outside of creating new products to resell to this group. This is why Microsoft feels like they are meandering, they need new revenue streams. This is also why they don't work so well in consumer products. Running after market leaders in hopes to find a revenue stream pisses off consumers.
Consumers are a different story. There are 7 billion individuals that don't have a procurement department. They buy smaller goods more often. There are entire industries that could be changed with one breakthrough product.
Comparing Microsoft and Apple is natural. Microsoft begs this comparison with its technology competitors by entering their markets and taunting them. They just do such a horrible job they don't feel like competitors.
MS Stores built as fancy luxury consumer hubs. Xbox 360, the billion+ dollar winner for MS last year, was born out of building hardware with software. The Nokia Lumia 700 is effectively the same mix of hardware and software (as Nokia was shadow taken over). The Zune was. Safari, Firefox, and Chrome lead the browser revolution, and all I see on TV now are IE commercials. Zune Marketplace. Windows Phone (the blackberry ripoff). Bing. Silverlight.
I wait with pleasure for the business user reactions once Windows' most useful and perfected feature, the start menu, is gone and replaced with a touch optimized fullscreen window with gigantic whitespaces and huge mouse paths for achieving anything. It is going to be beautiful.
The rumor I'd heard was that Courier was killed because independent teams created the device components. When put together it wasn't refined enough to pass review. Plus, they didn't see tablets as a viable market...again. Fingers crossed there was a much cooler reason.
I'm happy to say leaders from the Courier team left and started Paper on iOS. It is a dream to use and shows that they had the talent to make the Courier happen, if given the chance. http://itunes.apple.com/us/app/paper-by-fiftythree/id5060038...
Ha, ha - agreed on the start menu as well. I really do wish MS well (they can't have not tested this, right?), as their plan is pretty much a Hail Mary pass. But these sorts of decisions don't instill hope.
This is so false it is painful for me to read. I'm embarrassed for the author.
"The company's core competency is a process it uses for entering and consuming existing industries. After it enters a market, it rides off the innovations of its competitors, uses its existing brand power and sheer size to tackle a large surface area at the bottom of the market, and then, finally, it develops a valuable platform on top of the new market. As the platform grows, it slowly squeezes out the existing players."
Name one instance of this in the past 15 years. One. Oh wait, the author lists a few!
Xbox? Well, they have operated at a loss for the first seven years or so, ousted the entire create leadership team (Bach and Allard say howdy), and now are turning nice sums of coin. But this isn't truly Microsofts win, it is the entire industry's failures. Nintendo and Sony are seeing bad times. The currency difference is hurting Japanese companies, who are tired of innovating. Even many lead game designers are admitting the Japanese are years behind the US market. With Sony in turmoil and Nintendo trying to figure out how to right the ship, it is no wonder the years Xbox has seen a profit are only recently.
"Windows Mobile"
In 2010 Ballmer himself said they' lost a "whole generation of users". They dropped the ball so hard that even after the debut of the iPhone, when Google realized it was time to explore a new approach to Android, Ballmer didn't understand why it would be popular. Ballmer displayed a weak passion for mobile yes, but the crime here is that he displays no vision.
Windows 7 is years too late. Nokia will die in a vain attempt to give this OS a chance, but it will never work. The audience only sees two contenders in the ring.
"Windows" This is the only horse worth mentioning. It, and thus Office, are the default winners. Xerox, Kleenex, and Windows. They win this category by default as 99% of users could care less about the OS they use.
But there are an insane amount of products not mentioned here! Where are the Zunes, the silverlights, the Vistas, or the Azures? There are hundreds of horrific decisions we all watch spiral out of control. Remember the Kin? How I so wanted to play with its awkwardness. Or the Courier? How I pulled at my hair when they killed not only the product, but laid off the entire team. Remember Ensemble or Bizzare Creations? They made some beautiful games. Remember Surface? Remember a decade of IE's disgraceful finger in the face of all web users?
This is a history of successes? It sounds like a meandering path of exploration, where one in one hundred connects. This is luck.
The overall premise here is that Microsoft deserves a gold star for existing. They made 6.3B profit last quarter! Give them a break.
For comparison, Apple made 11.6B profit last quarter. That was a 47% increase from the previous year, which also had a 41% increase. These products were ideas that Microsoft had left behind, too busy swerving around trying to find a mission. Apple took the best ideas and developed a valuable ecosystem to grow as a platform. Sound familiar?