Microsoft Signs Leases to Open Retail Stores in Arizona and California

[johncarync]

Microsoft Guru Training

I predict the lines at the Microsoft Guru Bar will be SHORT. The gurus will be trained to quickly respond to users in this fashion:

"I'm sorry...that appears to be a hardware issue. You'll need to contact [HP/Dell/Acer/Toshiba/etc.] about that."

 

[mudmanmike]

How lame.

They will not sell computers, or peripherals. They will only sell Zunes, Xbox, Microsoft software and some 3rd party software. Why not go to Walmart? They have the same stuff. Microsoft is clueless! They do not understand what drives the Apple Stores. Apple users are excited to go and see the new products and talk to the knowledgeable store employees about the details. We know that we can go there to buy a new machine and leave with everything perfect, because they open the box, set-up and configure the machine, load all our software and transfer all the files. Then they pack it all up and you go home with a perfect box. Not everyone needs or wants this service (I dont), but it creates an atmosphere in the store that leads to a positive experience.

The excitement of seeing and touching the new products creates an energy that is contagious to anyone who goes to the store.

How will Microsoft recreate that energy by displaying 3 year old Xbox machines and Zunes? It will just feel like an overpriced Best Buy with a really bad selection.

They just dont get it.

 

[uberamd]

All those blue panels and screens on that image.... I'm just waiting for someone to Photoshop in a BSOD.

My gas station is plagued by BSOD. Any any point during the day there are at least 2 screens like that, at night its usuall 4-5. Sorry for the poor quality pic, iPhone 2G quite a while back.

 

[nkawtg72]

Thanks for the business lesson Donald right? Thanks, i didn't realize everyone on macrumors had a MBA and were part of fortune 500 companies. Neither of them have anything to do with the OP, and the point is, you can talk about Apple's revenue all you want, at the end of the day the OS breakdown is about 90% windows. Apple also makes a significant margin on their hardware sales (inflated?). Last time i checked, Microsoft makes money too

Edit: Added cap's and bold because that must REALLY MEAN I KNOW WHAT I AM TALKING ABOUT

Do you know what a strategic growth plan is? Did apple speak to their future product line? New space that they were going to compete in? reduction in work force or costs in manufacturing? Future partnerships they were entering into or such? To my knowledge, they wouldn't brief any of that during a shareholders call

"inflated" ?!?!?! what does that have to do with anything. so now you're offended that they are able to pull large margins on their products, and as such those margins don't count because you feel they should be lower? good one. plus i never said MS didn't make money. i'm on macrumors website because i have an interest in Mac. ive got better things to do than go to PC oriented websites and criticize PC/MS fanboys about their preference in computers, etc. you came to "my" neighborhood, so expect to get my opinion.

That's good for Apple & I don't think it's anywhere near 75%, but how is that good for you? You pay way more for the same pc with a diff os...

first, i didnt say apple was 75%, i said if I had a widget making XX% of the revenue, then id be less concerned with market share. it's good for me if i own their stock now isnt it? why do you care what im willing to pay for my computer? im not buying just an OS. i put value to way more than that when i choose a computer. but once again, why do you care? if you want to buy a computer for $300, go buy it. tell me how that works out for you too.

 

[nkawtg72]

So how is Apple's profit going to help me?

if you owned their stock, you would know the answer to that question now wouldn't you?

 

[*LTD*]

My gas station is plagued by BSOD. Any any point during the day there are at least 2 screens like that, at night its usuall 4-5. Sorry for the poor quality pic, iPhone 2G quite a while back.

Priceless.

 

[jav6454]

A great way for MS to show how much fail they have and how Apple will beat the living crap out of those Stores.... no I'm not being sarcastic.

MS stores won't help, since MS is not a small OS player like Apple. They don't make their computers. All they can sell to you is Office, Zune and XBox. Taking aside the good accessories they make. MS has nothing to show in the computer sales, because quite frankly, BestBuy, Walmart and every electronic store out there already sells Windows and MS products.

So... my $0.02

 

[BongoBanger]

There was nowhere in my post that said Apple was the first to have an innovative store. The Sony Style stores were in fact pretty in cool IMO. They had a very futuristic look. This is not the issue, Microsoft can do whatever they want but the blatent copying needs to stop. Gimme a break. A Guru Bar???

And how is Apple copying anyone by changing the CPU in their computers? They were first using the Motorola chips, then to PowerPC, now to Intel. I had no idea Windows PC's owned the rights to Intel processors.

The point is that Apple and MS copy each other and other companies. Everybody does it. If you think that MS are considerably more guilty of copying than Apple then you need a reality check.

 

[Axl Rose]

ill probably apply at the mission viejo one, i live pretty close

 

[Electrolytic]

How lame.

They will not sell computers, or peripherals. They will only sell Zunes, Xbox, Microsoft software and some 3rd party software. Why not go to Walmart? They have the same stuff. Microsoft is clueless! They do not understand what drives the Apple Stores. Apple users are excited to go and see the new products and talk to the knowledgeable store employees about the details. We know that we can go there to buy a new machine and leave with everything perfect, because they open the box, set-up and configure the machine, load all our software and transfer all the files. Then they pack it all up and you go home with a perfect box. Not everyone needs or wants this service (I dont), but it creates an atmosphere in the store that leads to a positive experience.

The excitement of seeing and touching the new products creates an energy that is contagious to anyone who goes to the store.

How will Microsoft recreate that energy by displaying 3 year old Xbox machines and Zunes? It will just feel like an overpriced Best Buy with a really bad selection.

They just dont get it.

From the CNET article: (Stocks said that Microsoft heard from customers that they wanted a simpler way to buy PCs.

"Our customers have told us three things--they want a more simplified buying option for PCs and devices, great technology, and competitive prices and a knowledgeable staff."

As for products, Stocks said there will be products "in the areas of laptops, mobility gaming, and software." That will include Microsoft software and hardware, of course, as well as brand-name PCs and software from other companies. ) So it sounds like they will sale computers...

 

[BongoBanger]

go back to school and learn some economics and business theory. it ISN'T about market share. it's about MARGINS!!!!!!!!

if i could sell my widget to only 1% of the market, but "own" 75% of the revenue in that market, then i'm the one laughing all the way to the bank.

read up on Apple's recent quarterly numbers and you'll see that's exactly what theyre doing.

Sure unless your market changes and you're so overfocused on one segment that you're screwed. Mass market share is important and is a fundamental economic principle. Apple found this out to their cost in the late 80's and early 90's.

 

[uberamd]

From the CNET article: (Stocks said that Microsoft heard from customers that they wanted a simpler way to buy PCs.

"Our customers have told us three things--they want a more simplified buying option for PCs and devices, great technology, and competitive prices and a knowledgeable staff."

Someone can't count.

 

[nagromme]

I think this is great!

I'll be able to play with Surface (an irrelevant product but a very cool toy) and then hop next door to Apple to buy REAL multitouch stuff

 

[nkawtg72]

i just heard from a reliable source that MS will also have an apparel section!!!

in addition to logo'd hats, jackets, gloves, and jewelry, they will also stock a new line called A$$wear. which stands for Ad-wear, Spy-wear, Spam-wear

 

[nkawtg72]

Sure unless your market changes and you're so overfocused on one segment that you're screwed. Mass market share is important and is a fundamental economic principle. Apple found this out to their cost in the late 80's and early 90's.

hate to break it to you but that isn't completely accurate. although market share is important, it is not the end all, be all, marker to a successful company that many try and suggest on these forums.

there is also something called the Law of Diminishing Returns. it is possible to become to big to remain sustainable.

in business a company is strictly focussed on sustainability and profitability. neither of which REQUIRE mass market share. if that were the case you'd not have the Apple computers, or porsche, or rolex, or ferrari, etc etc.

a business can focus on a niche in a market, have small market share, and still be sustainable and profitable.

 

[*LTD*]

repeat after me, its all about market share its all about market share its all about market share.

Who doesn't strive for market share? Seriously? You think apple is ok with their market share and position in their space? naive

Apple functions at the Premium end of the market. It isn't one big market. There are levels to it. There are consumers in particular income brackets that are locked out of Apple's demographic. This is one of the defining characteristics of any Premium product.

There are between 50-70 million Mac users. The Mac is understood as, and marketed as, a Premium product. Fewer units sold, but at much higher margins. Apple has stated quite clearly that they refuse to operate at the low-end. This means they provide a vastly different (and very attractive and coveted) user experience that people (who are able to) are willing to pay more for. Apple would not cheapen or muddy its brand image by competing on the same level with the like of Dell, for example. Either you differentiate yourself via some clear, desirable, distinguishing features, or you compete on price like the rest of the pack.

This is what has Microsoft acting so defensive: Windows still has overwhelming unit sale market share, but it is now almost entirely at the low end of the market. There are substantial implications to Microsoft under these circumstances. Just one of the reasons they are opening these Stores. MS is trying very hard to shed its bargain-bin image. A bit late for that, though.

"Market Share" is very often misunderstood. With a fraction of Microsoft's market share, Apple is not only thriving, but it also is in a position as:

1) The industry innovator
2) The most powerful brand in the industry today
3) Producer of the most coveted notebooks and devices in the industry today
4) The one to follow. Apple does everyone else's R&D for them (apparently.)

So when you discuss "market share", you need to determine exactly which end of the market you're talking about. The lion's share of what part of the market? The Premium end of the market pyramid is near or at the top. It's much more narrow, but the consumer approaches tech (and other products) from an entirely different perspective (often not on price), with difference epxectations that Apple happens to cater to. Ideally, you WANT to rule the Premium end. It's these customers that build your brand, that make it desirable, and that will pay top dollar for what you provide.

 

[Electrolytic]

first, i didnt say apple was 75%, i said if I had a widget making XX% of the revenue, then id be less concerned with market share. it's good for me if i own their stock now isnt it? why do you care what im willing to pay for my computer? im not buying just an OS. i put value to way more than that when i choose a computer. but once again, why do you care? if you want to buy a computer for $300, go buy it. tell me how that works out for you too.

Sorry I thought you were making a example that Apple makes 75% of the revenue the market.

Yes its good for you if you own Apples stock & they make money...

As for if I care what your willing to pay for I really don't, its your right to pay & use whatever you want..but as a rule lower prices are better for the consumer, it leave money to buy others stuff they don't need...

 

[uberamd]

Apple functions at the Premium end of the market. It isn't one big market. There are levels to it. There are consumers in particular income brackets that are locked out of Apple's demographic. This is one of the defining characteristics of any Premium product.

There are between 50-70 million Mac users. The Mac is understood as, and marketed as, a Premium product. Fewer units sold, but at much higher margins. Apple has stated quite clearly that they refuse to operate at the low-end. This means they provide a vastly different (and very attractive and coveted) user experience that people (who are able to) are willing to pay more for. Apple would not cheapen or muddy its brand image by competing on the same level with the like of Dell, for example. Either you differentiate yourself via some clear, desirable, distinguishing features, or you compete on price like the rest of the pack.

This is what has Microsoft acting so defensive: Windows still has overwhelming unit sale market share, but it is now almost entirely at the low end of the market. There are substantial implications to Microsoft under these circumstances. Just one of the reasons they are opening these Stores. MS is trying very hard to shed its bargain-bin image. A bit late for that, though.

"Market Share" is very often misunderstood. With a fraction of Microsoft's market share, Apple is not only thriving, but it also is in a position as:

1) The industry innovator
2) The most powerful brand in the industry today
3) Producer of the most coveted notebooks and devices in the industry today
4) The one to follow. Apple does everyone else's R&D for them (apparently.)

So when you discuss "market share", you need to determine exactly which end of the market you're talking about. The Preimum end of the market pyramid is near or at the top. It's much more narrow, but the consumer approaches tech from an entirely different perspective, with difference epxectations that Apple happens to cater to. Ideally, you WANT to rule the Premium end. It's these customers that build your brand, that make it desirable, and that will pay top dollar for what you provide.

Very well put. These netbooks are also hurting PC companies in a sense because people see that they can get a 'laptop' (as average consumers don't know the term netbook) for $300, so they demand these low cost systems. Since Apple is premium, they can charge higher costs for the experience and still have enough customers to remain profitable.

I am curious to see what happens to the mid-range market as high end and low end become more and more populated.

 

[swb1192]

NOOO NOT scottsdale arizona!!!!! Stay away Microsoft!! The brand new Apple Store here is incredible, it doesn't need any garbage near it!!

 

[nkawtg72]

Sorry I thought you were making a example that Apple makes 75% of the revenue the market.

Yes its good for you if you own Apples stock & they make money...

As for if I care what your willing to pay for I really don't, its your right to pay & use whatever you want..but as a rule lower prices are better for the consumer, it leave money to buy others stuff they don't need...

no problem. easy to misread posts when in a hurry. i do it all the time
can't say i completely agree with the lower prices are better for the consumer though. i do like the idea of buying more things i dont need though!!!

 

[Eidorian]

Very well put. These netbooks are also hurting PC companies in a sense because people see that they can get a 'laptop' (as average consumers don't know the term netbook) for $300, so they demand these low cost systems. Since Apple is premium, they can charge higher costs for the experience and still have enough customers to remain profitable.

I am curious to see what happens to the mid-range market as high end and low end become more and more populated.

The netbook segments opens up a just good enough market to get web browsing and basic office functions done. Anyone that has higher expections from a $299 netbook is very misguided.

The $500 to $1,000 range is where you're going to find most sales. That's including a display as well for a desktop.

 

[BongoBanger]

hate to break it to you but that isn't completely accurate. although market share is important, it is not the end all, be all, marker to a successful company that many try and suggest on these forums.

Nope, but saying that margins are all important is equally wrong.

there is also something called the Law of Diminishing Returns. it is possible to become to big to remain sustainable.

in business a company is strictly focussed on sustainability and profitability. neither of which REQUIRE mass market share. if that were the case you'd not have the Apple computers, or porsche, or rolex, or ferrari, etc etc.

Porsche are being bought out by VW. Fiat own Ferrari. Rolex are the largest manufacturer of luxury watches. Apple nearly died by focusing on one market.

a business can focus on a niche in a market, have small market share, and still be sustainable and profitable.

Until the market disappears unless it can diversify which, in fairness to Apple, they did. That's why they're still here.

We can carry on a discussion about economics if you want. It's been a while since I did my undergraduate degree but what the hell?

 

[nkawtg72]

i direct many of you to this post.

https://www.macrumors.com/2009/07/23/apple-claims-91-of-1000-pc-market-revenue-in-june/

it speaks specifically of Apple's dominance in a particular niche of the market. however it is not apple's market share, but their share of the revenue in that market that makes them dominant.

as ive been trying to say Market Share is not all it appears.

theoretically speaking, if i were a company, id be happy with 1% market share if i was turning high margins, pulling high shares of the markets revenue, and i were overwhelming sustainable and profitable.

it may not be the best or only way to do business, but it's working for apple these days.

but back on topic, MS is obviously looking for some change and isn't happy with their current position or prospects if they find it necessary to go head to head with apple as they said they are doing now.

 

[Electrolytic]

Someone can't count.

I'm sure it was just a typo... He was probably forced to go to a government school...

 

[nkawtg72]

Nope, but saying that margins are all important is equally wrong.



Porsche are being bought out by VW. Fiat own Ferrari. Rolex are the largest manufacturer of luxury watches. Apple nearly died by focusing on one market.



Until the market disappears unless it can diversify which, in fairness to Apple, they did. That's why they're still here.

We can carry on a discussion about economics if you want. It's been a while since I did my undergraduate degree but what the hell?

that's quite alright. i won't need any edumakating today. you've already acknowledge and agreed with my position and the point i was making, with the first sentence you wrote in your post above, minus the part where you said margins are the all important thing. i have merely been responding to the Market Share zealots that seem to forget economics or never learned it. there are many more variables in the soup than just that one.