Fall of an Empire: How Apple attacked Microsoft


“Pincer” – one of the most famous and classic military attacks. It was first mentioned in the book of Sun Tzu’s “Art of War” and implies a simultaneous attack from various quarters for one common goal and thus blocking all paths for its retreat. In the end, the opponent shall either voluntarily or to the last trying to get out of this trap. However, it is almost impossible to make.

Greetings from Redmond

In 2013, the company’s revenue Microsoft has made more than $ 77 billion. Of this money, $ 19 billion technology giant has received a subdivision, Windows, and selling the rest of the software (basically, Office) brought him another $ 25 billion. Together they make up more than 56 percent of total revenue, so if Microsoft suddenly deprived of these two sources of their income, the corporation will have a very hard time.

If Microsoft wants to stay on the horse and continue to rule in the world of enterprise software sales, it needs to constantly develop something innovative. And, not least, to make these products as accessible as possible to the user.

Simply put, Microsoft is now locked in a large “box”, as it is very much dependent on your operating system and office suite. But she has no other choice. Microsoft can not produce such products, which would actually be interesting to the consumer. Zune? Windows Phone? Bing? The only one who uses it all – this is probably the technological journalists who need to be aware of all the new products.

Sooner complacent

More than 10 years ago, one company broke into the process “stage” as it did not have one. She was able to create a simple device with a green screen, which displays a variety of text messages, and the gadget is published notifying sounds very touchy. Recognize him? Of course, it is a pager – at one time it was popular not only among ordinary people, but even among well-known bankers and politicians.


Of course, the creators of this amazing device soon plunged into a sea of ​​money and fame. After receiving solid investments they began to experiment with mobile phones that are affordable for all, and combined the portability, convenience, and reliability that have been in the pager.

After a few months of hard work, they were still able to develop a mobile phone that is very different from the current models. Nevertheless, the company’s engineers knew that they produced a device intended to “blow up” the global market. Everyone knew it. And realize that access to a wide range of consumers with the handheld device is equivalent to entering the list of the most expensive in the corporate world.

And they were right.


But soon came the first problem. Immersed in the depths of his success, the engineers were afraid to experiment. The leaders were afraid to give appropriate instructions. They feared that if the gadget will change anything substantial, he would be no use to anyone. Involuntarily, they became prisoners of the same “box” in which Microsoft is right now.

They were doomed to failure. It just happened.

In 2007 the company introduced another revolutionary, in its view, device. People liked the new device, but the company that actually has been the first, it is not worried. Its leaders believed that such a gadget was simply “impossible.”

“Box”, which landed BlackBerry

Yet it happened. And BlackBerry – the company that created the very pagers, which were mentioned above – panicked. In 2007, Apple lowered the price as on the iPhone, BlackBerry that unwittingly found herself outside the market .

BlackBerry ever think about innovation as long as it is too late. And even when it seems to be trying to keep their “ship” afloat , the company closed a panic holes, and all that was in her hand.

Microsoft is locked in the same trap. Corporation is so dependent on new versions of Windows and a package of Office, that if they wanted to be able to get out of it.

The examples are not far to seek. In 2010, BlackBerry tried again to break into the market with a new product (like in the good old days), but again it was too late. The same goes for Windows 8. It is so different from Windows 7, users still do not risk installing it. In the first months after the release of the operating system update the number was incredibly small.

For comparison – a day Apple was able to extend exactly the same number of copies of OS X Mavericks , as Windows 8 have acquired a few months.

Irreversible changes

The basic lunge toward Microsoft from Apple was the free distribution of OS X Mavericks and iWork office suite with a full understanding of what its competitor can never crank out something like that. Returning to the analogy of “ticks”, you can compare them with iWork and OS X Mavericks , who hung over the only way out of the “box”, which lingers Microsoft.

Home to become more innovative than Apple, now again lost. 


But for how long?

Based on materials from The Michael Report and The Verge

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