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  Microsoft to Exit Mac Market If Sales Continue to Lag
Time: 10:54 EST/15:54 GMT | News Source: WinInformant | Posted By: Byron Hinson

On the eve of Apple Computer's semi-annual MacWorld event, Microsoft has dropped a bombshell on the company: Work harder to accelerate Mac OS X sales, or Microsoft will exit the Mac market forever. This sentiment is one shared by many Mac developers, as Mac OS X has not sold well at all, as reported recently in WinInfo Daily UPDATE. Currently, Apple estimates that as few as 1 to 2 million people have switched to its latest operating system, despite the fact that it's shipped free on several million computers. But a more telling figure from Microsoft may put things in perspective: Sales of the software giant's OS X-specific Office version, dubbed Office v. X, have been very dispappointing, with the company selling just 300,000 units since the suite went on sale last year. Microsoft had expected to sell over 750,000 copies in the first year.

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#1 By 7754 (216.160.8.41) at 7/15/2002 11:18:10 AM
Ouch! I'm not a big Mac flag-waiver, but nonetheless this is disappointing news. Hopefully support and use of OS X will continue to increase and gain momentum... I suspect it will, and that this is just vented frustration with the rate at which it is happening.

#2 By 1401 (24.74.51.203) at 7/15/2002 11:45:09 AM
Drop da bomb!!!
Mac OS = vaporware...

This post was edited by chrishedlund on Monday, July 15, 2002 at 11:46.

#3 By 4379 (66.54.164.122) at 7/15/2002 12:00:49 PM
I don't know man first MS starts with the product activation bull, then they bust out with the Palladium hardware thing and now they are dropping Mac support...when will it end.

I think I'm gonna make the switch to OSX...oh wait I just saw that dumb ass "Switch" commercial... I think I'll stay


This post was edited by OpenZine on Monday, July 15, 2002 at 12:01.

#4 By 1295 (216.84.210.100) at 7/15/2002 12:08:34 PM
I'm not even close to a MAC fan. But I do think that the OS is a good thing... just not my style.

This is terrible news for Apple and I really don't know if they are going to be able to make the turn around fast enough to please MS.

I can see where MS is coming if they have only sold 300,000 units so far. That isn't much for a program that most likely took alot of time to create. It will be interesting to see how this pans out. Its just going to be a waiting game for this one.

#5 By 3653 (65.142.59.97) at 7/15/2002 12:10:39 PM
if msft could garner just half of mac's remaining 4% of the desktop market... think of how much $ that would be in additional revenue. Why not take it? As a shareholder, I want maximum $ for my investment... and Apple is, frankly speaking... easy money.

Apple will still have hollywood...

#6 By 3465 (206.20.132.147) at 7/15/2002 12:30:43 PM
Damn, Mac for X looks hellava better than O2K2!

#7 By 1401 (24.74.51.203) at 7/15/2002 12:32:19 PM
No matter how you look at it, this is bad news. Although I do not own a Mac and never have, I do like the new Mac OS X. The funny thing is, if Apple made the right moves, they would have the power to blow Microsoft away and become the industry leader...

#8 By 931 (63.169.175.28) at 7/15/2002 12:58:46 PM
lol
#9... when have you known apple to make a right move? lol


#9 By 135 (209.180.28.6) at 7/15/2002 1:56:15 PM
Mac OSX simply isn't selling, and unfortunately Microsoft's latest software is tied to that particular version.

This is a difficult question for Apple to answer. People don't like OSX, they're buying new machines and restoring OS9 to them. Will this trend change in the future? Perhaps in time as more software becomes available for OSX and Apple fixes the UI problems, as well as more experience and exposure happens in the marketplace...

Or the other alternative, the Mac stagnates... OSX is the end of the line and we hear from them no more. Won't be the first time a company loses their marketshare because of an OS upgrade.

It's a lot like the early adoption rates of Windows NT compared to say Win95. There was a very sound reason why Microsoft kept Win9x code selling in parallel with WinNT code until they could converge them in XP. The reason wasn't technical, it had a lot to do with marketplace experience. The software development practices needed time to mature, people needed to get familiar with an OS with layers of security, memory protection and so forth.

Perhaps the real mistake here was Apple trying to push OSX too hard? After all OSX certainly hasn't been ready for primetime. They should have instead taken a lesson from Microsoft, advocate it towards a niche market and then slowly get people to convert.

#10 By 1401 (24.74.51.203) at 7/15/2002 2:11:39 PM
That's exactly my point #10. The lack of sound decisions is what got them into this mess to begin with. The question is, can they right themselves? It would be a hell-of-a-task, but it can be done...

#11 By 1896 (208.61.159.4) at 7/15/2002 2:19:35 PM
#13 I agree with you 100%. Lately I had a lot of meetings with a guy who is designing a new line of labels for our products and recently he got a new MAC with OSX installed. In spite of this he still use use the previous version of the OS; what puzzles me is the fact that when I asked him the reason for using the old one while OSX honestly look great he explained me that in spite of the fact he really likes the "visual effect" of the UI he doesn't not feel confortable or at ease working with it.

This post was edited by Fritzly on Monday, July 15, 2002 at 16:39.

#12 By 6859 (204.71.100.215) at 7/15/2002 2:54:45 PM
Personally, I think leaving the Mac market is a mistake. Not only from revenue side (money is money, after all), but from a legal side: MS has been able to your Apple as an example of how "non predatory" they are (as a defense against anti-trust); but if they cut Apple loose, and Apple dies because of it, then MS is up the creek without a paddle. Then the federal regulators come in and start slashing worse than a Half-Orc Barbarian with a Great Sword!

(sorry, I just had to enter a little NWN stuff today since I can't play at work and I'm going through withdrawal.)


#13 By 1295 (216.84.210.100) at 7/15/2002 3:05:12 PM
#17... the best one is the sysadmin who switched... if I employeed that guy he would get fired on the spot for that commercial... but of course, they aren't real stories. What I find funny is they don't push the biggest reason most people go to Mac... "I switched because it looks cool!"

Here are my favorites:

Aaron Adams: http://www.apple.com/switch/ads/aaronadams.html
The LAN Administrator
Dave Haxton: http://www.apple.com/switch/ads/davehaxton.html
The programmer
Patrick Gant: http://www.apple.com/switch/ads/patrickgant.html
The BSOD! AHHHH!

This post was edited by Mr.Humpty on Monday, July 15, 2002 at 15:11.

#14 By 5444 (208.180.140.230) at 7/15/2002 7:17:25 PM
#12

Actually it was Steve that nixed the Hardware platforms, (at a big loss for us here in texas btw)

If they had allowed it to continue, and let these companies take the hardware expense. but lower the cost of the platform you would probably see a different APPLE today (perhaps even a bigger APPLE at that.

But APPLE does a specific platform to program for, and not to many variances. (and most of those are usb or firewire based, as they have only 1 or 2 platforms that can be expanded internally)

I believe with the clones as long as each paid a licensing fee would have open new ground for APPLE over the current platform they have now. and at least would have helped penitrate the market further.

Imagine the enthusiest that would actually be able to build his own mac:)

El

#15 By 7390 (63.211.44.114) at 7/15/2002 7:52:44 PM
#18, thanks for links. Those commercials are are brutal, if the ads were real (which they are not) then that "Lan Admin" should be fired on the spot. Why should MS invest major dollars in the market that is not growing (OSX)? The good thing about Apple is that they have the movie trailor to Lord of Rings part II (Two Towers) on their website.

#16 By 2332 (165.247.11.70) at 7/15/2002 7:54:22 PM
#13 - "The reason wasn't technical, it had a lot to do with marketplace experience."

Actually, a lot of the reason was technical. They simply didn't realize how massive a project it would be. But you're correct, it also made business-sense as well.

#17 By 61 (65.32.170.1) at 7/15/2002 9:23:24 PM
Cthulhu:

Only problem is, according to Jackson, Apple doesn't really count as a competitor (yes, it's complete BS, and Jackson only said it because if he hadn't, there is no way MS could have been declared a monopoly).

#18 By 442 (65.33.154.204) at 7/15/2002 9:48:01 PM
The "Switch" ads are very real. They are not scripted and show real people who have switched. They are NOT fabricated in ANY way. Apple simply turned on the camera and asked them to talk about their experience of switching. Then they edited it down to a short commercial.

#19 By 2960 (68.100.19.3) at 7/15/2002 11:44:48 PM
Awwww.... Billy is upset with Apple's new ad's, I guess :)

Microsoft makes a TON of Money on Office for the Mac. This is simply Microsoft FUD at it's best.

Even if it did go away, life goes on without it.

TL

#20 By 2960 (68.100.19.3) at 7/15/2002 11:48:24 PM
#13,

That's one busted-ass crystal ball you have there.

But, I've come to expect nothing less from one of the resident "MMM" 's (Microsoft Merry Men).

TL

#21 By 61 (65.32.170.1) at 7/16/2002 12:19:39 AM
I think the ads are very well done.

Usually when you see people (non-actors) on TV, it seems so fake, but these do very very well, like they are actually talking to someone.

#22 By 135 (208.50.201.48) at 7/16/2002 1:23:56 AM
I guess you have to define "real"... Apple paid these people to switch.

Anyway, some Apple switch ad humor:
http://www.penny-arcade.com/view2002-07-12rl.html

http://download.consumptionjunction.com/multimedia/cj_10493.wmv
Warning: Contains strong language.


This post was edited by sodablue on Tuesday, July 16, 2002 at 01:25.

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