Windows and the Race to the Bottom

Rogifan

macrumors Core
Original poster
Nov 14, 2011
20,747
22,804
Interesting "rant" from Microsoft fanboy Paul Thurrott:

http://windowsitpro.com/windows-81/microsoft-windows-race-to-the-bottom

But I'm worried that this race for the bottom is exactly what it sounds like, a zero sum game in which Microsoft and its partners are shooting for big numbers (unit sales) but ultimately end up with little or nothing in the way of actual profits because the only big growth will be in a part of the market where profit is difficult. When PC prices steadily plummet, as they did with the netbook, there's no rebound. You can't convince customers to suddenly start spending more on these things.
The media totally mis-represented Microsoft's price cut on Windows licensing. It only applies to the low end, devices $250 or cheaper. Clearly Microsoft had decided to join the race to the bottom. Now is Appler's time - more than ever - to really be laser focused on producing the best quality devices that consumers are willing to pay a premium for. Let Microsoft and Google OEMs fight out the race to the bottom.
 

Jessica Lares

macrumors G3
Oct 31, 2009
9,205
726
Near Dallas, Texas, USA
I just think that the manufacturers would be better off not doing low end devices at all. We have too many tablets and smartphones in people's hands who can't even afford to buy an app for them. What's the point other than marketshare? Marketshare doesn't make you any money, and neither does presence other than you might get someone to buy one after seeing another. But you have the problem like Amazon where they have to beg people to use their App store and give them free money to do so.
 

maflynn

Moderator
Staff member
May 3, 2009
64,088
30,681
Boston
Interesting quote from the article
Unable to compete with Apple at the high end, Microsoft will now take on Android and Chrome OS for the masses instead.
This isn't a new strategy for MS, they have always marketed to the masses more then catering to niche markets. What has changed is they now have major competitors in that sector, where as in the past they had it to themselves.

I think MS's approach is ill-fated and won't help them in the long run. Just look at dell that made a race to the bottom trying to get more customers at the expense of their margins. I'm not saying MS is doomed, but I don't think its a viable long term solution.
 

MattG

macrumors 68040
May 27, 2003
3,763
227
Asheville, NC
This is why I never take that whole marketshare argument seriously, especially when in the context of a "which device is better / more popular" debate, especially-especially when it comes to Microsoft and Android products. Congrats, your product runs on a bazillion devices that mostly perform like crap.
 

roadbloc

macrumors G3
Aug 24, 2009
8,779
211
UK
Personally, I couldn't care less how much money a company makes and has no influence upon choosing which product I should buy. Windows is going to be cheaper, which is a win for me. Just like Mavericks being free is also a win. Anything cheaper is a win.

I'm sure Microsoft will have a strategy to balance the books. Maybe through content sales or something... I have no idea.
 

Rogifan

macrumors Core
Original poster
Nov 14, 2011
20,747
22,804
I just think that the manufacturers would be better off not doing low end devices at all. We have too many tablets and smartphones in people's hands who can't even afford to buy an app for them. What's the point other than marketshare? Marketshare doesn't make you any money, and neither does presence other than you might get someone to buy one after seeing another. But you have the problem like Amazon where they have to beg people to use their App store and give them free money to do so.
That's what I don't get about this. Leo Laporte thinks this is a great idea because it will get people hooked into Microsoft's ecosystem. But unless these people are buying subscriptions to Office 365 or something what's the point? I don't think Microsoft wants to become an advertising company.

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Personally, I couldn't care less how much money a company makes and has no influence upon choosing which product I should buy. Windows is going to be cheaper, which is a win for me. Just like Mavericks being free is also a win. Anything cheaper is a win.

I'm sure Microsoft will have a strategy to balance the books. Maybe through content sales or something... I have no idea.
How is anything cheaper a win if it results in crappy products like netbooks? You should care about whether a company makes money or not because if they don't they go out of business.

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Interesting quote from the article


This isn't a new strategy for MS, they have always marketed to the masses more then catering to niche markets. What has changed is they now have major competitors in that sector, where as in the past they had it to themselves.

I think MS's approach is ill-fated and won't help them in the long run. Just look at dell that made a race to the bottom trying to get more customers at the expense of their margins. I'm not saying MS is doomed, but I don't think its a viable long term solution.
http://reviews.cnet.com/8301-13970_7-57619652-78/android-widgets-on-the-nokia-x-feel-out-of-place/
 

roadbloc

macrumors G3
Aug 24, 2009
8,779
211
UK
How is anything cheaper a win if it results in crappy products like netbooks? You should care about whether a company makes money or not because if they don't they go out of business.
Nobody is forced to buy badly made products. Them being cheap does not equate to them being bad. A company going out of business is not my concern. It is the senior staff, board of directors and shareholders concern. Unlike most on here, I do not "support" certain companies... I buy what suits my needs regardless of the financial situation of the company.