Microsoft (MSFT) under attack, is it about to go under??? (Part 2 of 6)

By: ispeculatornew
Date posted: 06.10.2009 (5:00 am) | Write a Comment  (5 Comments)

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It started off as not much of a rivalry really. To parallel tennis, Andy Roddick one said to call his matches against world #1 Roger Federer a rivalry, he would need to actually win a few. In the same way, for a very long time, Apple’s Mac computers seemed to be at a distant memory from PC’s. And why would it matter anyway right? PC’s are not built by Microsoft nor does the company get any profit. Of course, the importance lies in the software. PC’s generally have Windows as their operating software, and the office suite installed. That of course means big bucks for the Redmond company. And for a long time, there was really no rivalry between the two. But thanks to momentum gained with its Ipod, Apple ventured into advertising campaigns to promote how “cool” the Mac is compared to the PC. Who has not seen one of these ads on tv? And thanks to many factors, the Mac is actually making strides and gaining market share.

While estimates vary, Apple has in a sense gone from almost nowhere to about 8% of US market share, which is starting to be an important loss of revenues for Microsoft to the point where it is now striking back with ads explaining how buying a Mac makes no sense because it is so much more expensive. Will Microsoft be able to slow down the growth of Apple? Clearly it does not have much momentum right now…

zuneAs it often does, Microsoft decided to strike back by going to the heart of Apple, as it launched competition for the king of music players, the Ipod. Microsoft launched Zune, which few argue does not have as much functionality as the Ipod, but few want to own because of:

-The look
-The coolness factor
-The applications

Microsoft continues to pour lots of money into its product trying to gain some traction. Its latest venture, the Zune HD, seems like direct competition to the high quality image of the Ipod Touch. Microsoft does have about 8.7% of market share in the portable music player market, which is not bad, but even after this much time, the momentum remains with Apple. In fact, the Zune has lost 1.5% or so in the past few months. What is it to do? There seems little to be done and we are far from convinced that Microsoft will keep at this game for long. There is no doubt that the Zune will need to start doing better if it wants to keep receiving support from Microsoft.

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5 Comments

  1. Comment by Zavi — June 10, 2009 @ 7:43 am

    Love the ads! lol It’s so funny! I would watch it again… and again… and again… great advertisement!

    I don’t know about the the Zune. Does itunes and zune work well together? how’s the zune software?

  2. Comment by IS — June 11, 2009 @ 4:10 pm

    @ Zavi , no it does not work with Itunes, not sure how good the software is actually but I have not heard much about it so I would assume it is good.. not more, not less…

  3. Comment by Frank — June 12, 2009 @ 7:58 am

    hey little correction. I don’t know about the software (if it’s good or not), but zune is working well with itunes, because zune supports AAC. However it’s only songs from itunes store that zune software or any other software is not working with.

  4. Comment by IS — June 14, 2009 @ 7:01 pm

    @Frank, thanks for info:)

  5. […] with Ipod for the time being, it is too expensive and has shown little to no results. Both Sony and Microsoft gave it a shot but without any […]

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