Steamd

Macworld just published a post on their site about Microsoft opening retail stores near Apple stores. My initial thought was, “Huh?” I mean, I’m a little flummoxed by this. Who’s bright idea was this? I mean, there’s the old adage that if you can’t beat them, join them but this is ridiculous.

There are a couple of reason why I think Microsoft is going to fail in this venture.

First of all, how does Microsoft expect to compete with Apple’s stores? I mean, it’s not like they’re gonna be selling HP, Dell, Compaq, Sony, or any other brand of computer in their stores. I suppose its safe to assume that Microsoft will be focusing on their software as well as other items like the Xbox, Zune, and other stuff like that.

Unlike Apple, Microsoft has to rely on third-party vendors to provide a complete computing solution. So how do they plan on connecting customers to a complete solution if they’re not even selling computers? I fail to see the logic in how they think this is going to help Windows in any meaningful way.

Most people don’t buy Windows off the shelf. If it’s not pre-installed on the computer they are buying then they are not likely to fork over $100+ or more for a Windows upgrade. I guess Microsoft is hoping that the existence of exclusive Microsoft stores will attract a greater number of people who might be willing to pay for a Windows upgrade. Personally, I think Microsoft is going to have quite an uphill climb in getting a greater number of people to purchase Windows upgrades.

Lastly, opening stores in close proximity to an Apple store is futile. Opening one near an Apple store is bad enough, but opening a Microsoft store right next door to an Apple store?  That’s suicide!  The reason is that by allowing customers to draw a direct A-B comparison with your competitor you run the risk of further alienating yourself with the competition.

I’m willing to bet that you’ll have a lot of customers who will first enter the Microsoft store only to end up in the Apple store just so they can see what all the fuss is about with Apple. Some customers will leave and go back to the Microsoft store unconvinced that an Apple computer is right for them.  But a good number of them will likely consider switching after being exposed to both due to the short proximity of experience.

So, is the news of Microsoft stores opening up good for Microsoft or Apple?  Likely, it’ll be good for both. But I honestly think that it’s much better for Apple. Competition is a good thing and it’ll be interesting to see just how Microsoft plans to compete with Apple in their own territory. I say to Microsoft: “Bring it on!”

Tags: retail, stores
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This entry was posted on Thursday, July 16th, 2009 at 11:18 am and is filed under Apple, Microsoft, Rants, Technology. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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