Microsoft's Shifting Strategy in Response to Apple

AllthingsD republishes a memo from Microsoft CEO Steve Ballmer to all Microsoft employees detailing an update in their corporate strategy. Ballmer specifically mentions Apple and their recent success:

Apple: In the competition between PCs and Macs, we outsell Apple 30-to-1. But there is no doubt that Apple is thriving. Why? Because they are good at providing an experience that is narrow but complete, while our commitment to choice often comes with some compromises to the end-to-end experience. Today, were changing the way we work with hardware vendors to ensure that we can provide complete experiences with absolutely no compromises. Well do the same with phonesproviding choice as we work to create great end-to-end experiences.

Ballmer details how Apple has found success in an "end-to-end" model by providing the customer with a full experience by designing both hardware and software. Walt Mossberg had previously articulated this basic difference in strategy between the two companies.

For many years, there have been two models of how to make computers and other digital devices. One is the component model, championed by Microsoft. The other is the end-to-end model, championed by Apple.

Microsoft, of course, saw huge success in the component model in the personal computer market by supplying Windows to thousands of competing hardware developers. Microsoft has tried to apply this same strategy to music players and mobile phones, but now acknowledges this had come with some user experience compromises. Some of this shift in strategy has already been seen in their Xbox 360 and Zune products where Microsoft is the sole vendor.

Ballmer, however, believes that Microsoft will be able to extend a "no compromises" end-to-end experience while retaining a commitment to choice. He specifically mentions phones as a target. In fact, Microsoft is already rumored to be working on a Zune phone to compete with the iPhone.

Popular Stories

iOS 17 on Phone Feature

Gurman: iOS 17 to Provide Several 'Most Requested Features'

Sunday March 26, 2023 6:05 am PDT by
Apple changed the strategy for iOS 17 later in its development process to add several new features, suggesting that the update may be more significant than previously thought, Bloomberg's Mark Gurman reports. In January, Gurman said that iOS 17 could be a less significant update than iPhone updates in previous years due to the company's intense focus on its long-awaited mixed-reality...
dynamic island

iPhone 15 Dynamic Island to Include New Integrated Proximity Sensor

Friday March 24, 2023 12:27 am PDT by
This year, all iPhone 15 models will include Apple's Dynamic Island that unifies the pill and hole cutouts at the top of the display, but there will also be a material change to the feature that wasn't included in the iPhone 14 Pro models. According to a new tweet by Apple industry analyst Ming-Chi Kuo, the proximity sensor on the iPhone 15 series will be integrated inside the Dynamic Island ...
top stories 25mar2023

Top Stories: iPhone 15 Pro Design Leak, iOS 16.4 Coming Soon, and More

Saturday March 25, 2023 6:00 am PDT by
We're still almost six months away from the official unveiling of the iPhone 15 lineup, but it seems like every day we're learning more about what to expect from the next-generation models. Notably, this week gave us our clearest look yet at what appear to be some changes for the volume and mute control hardware. iOS 16.4 and associated releases are also right around the corner with some new ...
Hero0009

Best Apple Deals of the Week: Samsung's Smart Monitor M8 Gets Massive $250 Discount, Along With Year's Best AirPods Prices

Friday March 24, 2023 10:23 am PDT by
We saw a lot of great deals on Apple products and related accessories this week, including Samsung's iMac-like Smart Monitor M8 for $250 off, a 30 percent off spring sale at Anker, and the year's best prices on numerous AirPods models. All of these deals are still available to purchase right now, so we're recapping them and more below. Note: MacRumors is an affiliate partner with some of these ...
Steve Jobs Theater dusk

Apple Reportedly Demoed Mixed-Reality Headset to Executives in the Steve Jobs Theater Last Week

Sunday March 26, 2023 5:53 am PDT by
Apple showcased its mixed-reality headset to the company's top 100 executives in the Steve Jobs Theater last week, according to Bloomberg's Mark Gurman. In the latest edition of his "Power On" newsletter, Gurman explained that the "momentous gathering" is a "key milestone" ahead of the headset's public announcement planned for June. The event was intended to rally Apple's top members of...
apple mixed reality headset concept by david lewis and marcus kane

Some Apple Employees Seriously Concerned About Mixed-Reality Headset as Announcement Draws Closer

Sunday March 26, 2023 8:25 am PDT by
Some Apple employees are concerned about the usefulness and price point of the company's upcoming mixed-reality headset, The New York Times reports. Apple headset concept by David Lewis and Marcus Kane Initial enthusiasm around the device at the company has apparently become skepticism, according to eight current and former Apple employees speaking to The New York Times. The change of tone...
iphone 14 pro max deep purple feature purple

iPhone 15 Pro Rumor Recap: 10 New Features and Changes to Expect

Thursday March 23, 2023 6:42 am PDT by
While the iPhone 15 series is still around six months away from launching, there have already been plenty of rumors about the devices. Many new features and changes have been rumored for the iPhone 15 Pro and iPhone 15 Pro Max in particular. Below, we have recapped 10 changes rumored for iPhone 15 Pro models that are not expected to be available on the standard iPhone 15 and iPhone 15 Plus:A1...
iOS 16

iOS 16.4 Will Add These 8 New Features to Your iPhone

Sunday March 26, 2023 8:06 am PDT by
Following nearly six weeks of beta testing, iOS 16.4 is expected to be released to the public as soon as this week. The software update includes a handful of new features and changes for the iPhone 8 and newer. To install an iOS update, open the Settings app on the iPhone, tap General → Software Update, and follow the on-screen instructions. Below, we have recapped eight new features and...