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Preston Gralla's picture
Preston Gralla

Seeing Through Windows

Apple whines: Microsoft ads don't play fair

Apple has long had an ad campaign that belittles Microsoft and people who use PCs in a pretty smarmy kind of way. So it's a surprise that Apple is now whining that Microsoft isn't playing fair in its recent Laptop Hunters ad campaign. The real issue, of course, is that the campaign has been extremely successful, and Apple faces the loss of market share.

Microsoft's Laptop Hunter ads have been so successful that Apple lawyers called Microsoft to demand that they stop running them. As you might imagine, Microsoft didn't comply.

Kevin Turner, Microsoft's chief operating officer, had this to say about the ads and Apple's response to them at Microsoft's Worldwide Partner Conference in New Orleans yesterday:

The PC Hunter ads, the PC Rookie ads clearly have been winners in the marketplace.

I pulled this out of my Sunday newspaper. I have an old habit because I came from retail looking at the Sunday tabs and circulars that are in newspapers. This is straight out of my paper last Sunday. This is a comparison out of a leading electronics retailer that you can get a 13.3-inch Macbook for US$1199 from that retailer. Guess what. That same retailer, you can get the same PC with more RAM, a bigger hard drive, and almost a three-inch bigger screen for US$649. What an incredible opportunity.

And so we've been running these PC value ads. Just giving people saying, hey, what are you looking to spend? "Oh, I'm looking to spend less than $1,000." Well we'll give you $1,000. Go in and look and see what you can buy. And they come out and they just show them. Those are completely unscripted commercials.

And you know why I know they're working? Because two weeks ago we got a call from the Apple legal department saying, hey -- this is a true story -- saying, "Hey, you need to stop running those ads, we lowered our prices." They took like $100 off or something. It was the greatest single phone call in the history that I've ever taken in business.

I did cartwheels down the hallway. At first I said, "Is this a joke? Who are you?" Not understanding what an opportunity. And so we're just going to keep running them and running them and running them.

The Microsoft campaign has clearly hit Apple hard; studies have shown that consumer preferences for PCs have gone up since it's been running. They hit Apple where it hurts, because in a recession, people watch their wallets more -- and Apple hardware clearly costs more than Windows-based PCs.

Apple's lawyers are used to throwing their weight around, doing things like forcing bloggers not to write about Apple products before they're released. But those strongarm tactics won't work against Microsoft -- as Turner says, it only makes Microsoft want to spend even more money on the ads.

What People Are Saying

All smoke and mirrors

It's not an apples to apples comparison.

Yea, a PC will cost less than a Mac. But then you have to buy bunches of software for the PC, and that drives up the cost. And in order to do some of the things the Mac will do out-of-the-box, you have to upgrade that Windows Home Basic OS to the Multimedia or Pro version, and that will set you back a few hundred $$$.

The lawyers are just stalling, sending signals, before the next ad campaign. Don't forget, back in the antitrust days Bill bought a bunch of Mac stock and got Jobs put back in charge - the competition and shots across the bow help the industry as a whole. If you're out looking for a computer, and are actively comparing, you are more likely to actually purchase than walk out the store. The added press just puts more people in the stores to actively compare.

re: All smoke and mirrors

you wrote:

"It's not an apples to apples comparison.

Yea, a PC will cost less than a Mac. But then you have to buy bunches of software for the PC, and that drives up the cost. And in order to do some of the things the Mac will do out-of-the-box, you have to upgrade that Windows Home Basic OS to the Multimedia or Pro version, and that will set you back a few hundred $$$."

I didn't have to buy any new software for my Vista notebook. It came with Vista Home Premium, 4 gigs of RAM, 16 inch HD screen, dedicated numeric keypad section, 2 GHz dual core 64-bit AMD processor, and an internal LightScribe DVD burner. I am happy with Vista and it does everything I want or need it to do. I paid $519.99 on a tax-free holiday. I added the latest versions of Firefox, Opera, and Winamp for my surfing and entertainment software...no cost to add those.

I added Apophysis and the Apo 3D hack, I added LightScribe templates, plus other software that I normally use all for free, none of it the stolen type of free either. My machine just works right out of the box.

I compared and found the MacBook Pro to be the better deal

Several weeks ago I needed a new laptop. My 5-year old iBook was slowing to a crawl rendering 80mb image files. Plus, it was too old to run the latest version of Aperture. I did the comparison, and truth is when you make a fair comparison the PC's aren't really cheaper.

I compared to Dell and HP business-class laptops in their configurators. When spec'd as close as possible to the MacBook Pro, there was no significant savings. In fact the Dell was a little more expensive. When I worked in the corporate world, I had many PC laptops from IBM, HP and Lenovo. There is a distinct difference in the build quality of the business-class models compared to the $699 models. The MacBook Pro is built better than any laptop I have seen.

On a Thursday morning, I went to the Apple store and bought the MBP. Three hours later I had everything from the iBook migrated over and Aperture installed. Then got on a plane and headed right to a photo shoot halfway across the country. Never thought twice about complications from the migration affecting my ability to work remotely for 4 days. My wife is using the iBook now to run Office Mac , check email, iTunes and connect to her work PC through Microsoft Remote Connect. That was easy.

Coincidentally, my dad was about to move to a new Vista PC. His 5-year-old PC would take excruciatingly long to boot, and another 5 minutes to launch IE. He has all the usual AV and System Security stuff installed, however he probably didn't have the latest updates, patches or whatnot. He spent a couple days trying to resolve the problem. Eventually he surrendered and bought a new PC. So on Friday he started his migration and completed it on Sunday evening. Only to find that some of his trading software wouldn't run on his new 64-bit machine. Several days later he was still trying to sort this out. In the meantime, I had processed 1400 images and completed a bit of business remotely.

I have many anecdotes similar to this over my 20-year career. I don't have time for that nonsense. Call me a Mac fanboy, a lemming, whatever. My feeling is you get what you pay for. The computer is a tool, and the right tool for me is a Mac. It's not perfect, just better for me.

Back in the day people used to say Macs were toys, and couldn't be trusted with real business. I trust 2 small businesses to my Mac. Why people, who don't have access to an IT staff, would trust their business to a PC is beyond me.

Did you include GNU/Linux in

Did you include GNU/Linux in your "comparison"? I bet the answer is no. Why don't you go to FSF.org and learn about Free Software?

Instead of helping corrupt corporations you could try a nice, free GNU/Linux distro, like gNewSense.

How much did Microsoft and Apple pay you for this post? Is that all you do all day, posting for these corporations?

what a bunch of cry babies

Man, Apple freaks are a bunch of cry babies. No wonder Apple has to keep catering to you guys; you just whine about everything. Even if mac prices have dropped and the prices are lower than in the ad, they are still not as low as the PC prices. Get over it. Oh, just so you know, I own a Mac and a PC, so I'm not a Microsoft fan-boy. I just can't stand all the whining.

Why don't you go to FSF.org

Why don't you go to FSF.org and learn about Free Software?

Instead of helping corrupt corporations you could try a nice, free GNU/Linux distro, like gNewSense.

How much did Microsoft and Apple pay you for this post? Is that all you do all day, posting for these corporations?

What about truth in

What about truth in advertising? Why can't Apple call Microsoft. The pricing show in the advert is obviously incorrect and material to the ad so either they can adjust the ad to be an accurate representation of the competitor or risk a lawsuit over false advertising. It was Microsoft's who picked on Apple and now the ad has incorrect facts so it needs to be corrected or not run. If I told you your column sucked because your making up the facts you might be upset. I think as a writer you would support the true, but maybe you think different.

I agree... but the other element to come....

I have watched those ads and they really are not "apples to apples" (no pun intended) ads coupled with those that seem to be out shopping for computers without any research or even a real understanding of what they are buying. It truly isn't a fair comparison.

However... while I am long time fan of OS X, I have been running Windows 7 Release Candidate since about the day after it was available on one of my PCs. I have to say it is slick and cool enough, easy enough to use while not hiding the details so deep as OS X if you want them, zippy (my quad core system feels like a new system with the increased performance over XP) and so stable that Apple better have some uber cool things coming along. As much as I like my Mac, I find myself using it less and less with the Windows 7 system here.

Nothing made Apple be honest

Apple's ads cater their fan base, and feed an image they would like to maintain... but they exaggerate perceived "PC" flaws to a ridiculous extreme.

Kudos to Microsoft for not just sitting back while Apple puts on their (admittedly entertaining) show for the public.

The *fact* is, Apple users pay a premium, Microsoft is just pointing that out. Some Apple fans try to say that other costs (the favorite being viruses) offset this difference, but there truly isn't any merit or truth in those arguments.

If you are an Apple user and want to keep paying more to be one, all power to you. But don't get your hackles up and try to pretend that this price difference doesn't exist.

Lies, damned lies, and statistics

It's true Apple users pay a premium - up front. For that premium they get a system with carefully-integrated hardware and software that "just works," the right to buy an upgrade to the next iteration of the OS for around US$30, and a computer that will still be running well 5 or even 10 years after it leaves the store.

Think of the PC cost as the down payment on the cost of ownership; Apple users make a larger down payment, but their total cost of ownership is lower over the life of the computer.

Microsoft users get a lower entry fee, but the system won't last as long, and upgrading to the next MS OS is generally over $100 (not to mention the prices usually seen on Windows-only software packages, without which you might as well have bought a cinder block or a BBQ grill). And if you were gullible enough to fall for the "Ultimate" label on the OS, your upgrade will be closer to $200. Let's not forget all of the security vulnerabilities that MS is famous for trying to hush up, and then scrambling to patch *after* the exploit code is widely in use. How much is your data worth? Your bank account access data, for example.

I love Microsoft. I get paid very well for keeping their stuff limping along. But I know darn good and well that it costs a lot more to own Microsoft products than Apple products.