E-mails From 2003 Reveal Microsoft Caught 'Flat Footed' by iTunes Music Store Launch - MacRumors
Skip to Content

E-mails From 2003 Reveal Microsoft Caught 'Flat Footed' by iTunes Music Store Launch

Over the weekend, Groklaw discovered a couple of interesting e-mails sent by Microsoft executives Bill Gates and Jim Allchin to other members of the Microsoft executive team revealing that the company had been taken by surprise by Apple's launch of the iTunes Music Store in April 2003. The e-mails were made public as part of an antitrust suit brought against Microsoft in late 2006 for which Groklaw has been documenting the exhibits provided as evidence.

Gates' comments offered a candid assessment of the situation, expressing surprise at Apple CEO Steve Jobs' ability to strike distribution deals with music companies.

Steve Jobs ability to focus in on a few things that count, get people who get user interface right and market things as revolutionary are amazing things.

This time somehow he has applied his talents in getting a better Licensing deal than anyone else has gotten for music.

This is very strange to me. The music companies own operations offer a service that is truly unfriendly to the user and has been reviewed that way consistently.

Somehow they decide to give Apple the ability to do something pretty good.

In trying to understand how best to respond to Apple's move, Gates noted that Microsoft was caught "flat footed" by Apple's music download service and questioned appropriate strategies to respond.

I am not saying this strangeness means we messed up - at least if we did so did Real and Pressplay and Musicnet and basically everyone else.

Now that Jobs has done it we need to move fast to get something where the UI and Rights are as good.

I am not sure whether we should do this through one of these JVs [joint ventures] or not. I am not sure what the problems are.

However I think we need some plan to prove that even though Jobs has us a bit flat footed again we move quick and both match and do stuff better.

Microsoft vice president Jim Allchin offered a briefer assessment of the situation, offering only a pair of observations:

1. How did they get the music companies to go along?

2. We were smoked.

The same court case earlier revealed another e-mail from Allchin from 2004 in which he famously said that he "would buy a Mac today if I was not working at Microsoft." Steve Jobs used the quote to take a jab at Microsoft, displaying Allchin's statement at the beginning of Jobs' keynote at Macworld San Francisco 2007.

Related Forum: Mac Apps

Popular Stories

iPhone Handoff iOS 27 Feature

T-Mobile to Charge $5 a Month for iOS 27 iPhone Handoff

Thursday September 10, 2026 3:58 pm PDT by
T-Mobile will charge customers $5 per month to use iPhone Handoff, an e-SIM feature that allows the same phone number to be used on two separate iPhones. iPhone Handoff requires carrier support, and at launch, only T-Mobile users in the U.S. and Deutsche Telekom users in Germany will be able to use it. T-Mobile says customers can use their number across two compatible iPhone models and...
deep black iphone 18 pro

Apple Says iPhone 18 Pro Max Sold in U.S. Differs in One Way

Saturday September 12, 2026 3:27 pm PDT by
As noted by Nicolas Lellouche, who writes for the French tech website Numerama, Apple has updated its tech specs pages for the iPhone 18 Pro and iPhone 18 Pro Max to clarify which models are equipped with its new C2 cellular modem and where. Apple now says the iPhone 18 Pro has a C2 modem worldwide, while the iPhone 18 Pro Max uses the chip in every country except for the U.S. According...
iOS 27 Next to iPhone

Here's When iOS 27 Rolls Out in Every Time Zone

Sunday September 13, 2026 3:00 am PDT by
Apple is about to release iOS 27, which will finally deliver more advanced Siri AI capabilities as well as a variety of other refinements, improvements, and new features to iPhones. It's Apple's biggest software update of the year, and Apple announced at Wednesday's iPhone event that it will be releasing iOS 27 sometime tomorrow – Monday, September 14. iOS 27 won't be the only release on...