Ten old age ago , Microsoft was the company everyone loved to detest .
The most vociferous Microsoft haters slammed the company for being a devouring industry yob that used its monopolistic , clumsy , emulator operating system to force software on users and coerce better half into unfair licensing deal .
Do n’t look now , but the role of the industry ’s biggest rowdy is increasingly played by Apple , not Microsoft . Here ’s a flavor at how Apple has shoved Microsoft aside as the company with the tough repute as a monopolist , ape and a yobo .
Apple the monopoliser
The core complaint about Microsoft in the nineties was that its Windows market share gave it monopoly power , which it abused in multiple ways . Attorneys General and others zero in in on the “ bundling ” of the Internet Explorer Web web internet browser , which they claimed was pressure on users because Microsoft offer it as part of Windows .
masses love iPods ( including me ; my family of four has buy 12 iPods in the preceding few class ) . But iPod come bundled with iTunes . Want to buy medicine from Apple ? Guess what ? You must put in iTunes . Want an Apple cell speech sound from AT&T ? Yep ! ITunes is required even if you require only to make phone birdsong . require to buy ringtones for your Apple phone ? iTunes .
Apple not only “ megabucks ” iTunes with multiple merchandise , it forces you to use it . At least with cyberspace Explorer , you could always just download a competitor and ignore IE .
Not fair , you might say . Any hardware twist that syncs data with a PC as part of its heart and soul functionality has software to facilitate that syncing . dependable enough . But operating system of rules have web browser as part of core functionality , too . Does n’t Mac OS X get with Safari ? Does n’t the iPhone ?
And “ bundling ” works . Steve Jobs boast this hebdomad that Apple has distributed 600 million copies of iTunes to date . The overpowering bulk of those transcript were iTunes for Windows . And iTunes for Windows ’ popularity is n’t driven by software product caliber . ITunes is the slowest , clunkiest , most nonintuitive coating on my system . But I need it because I eff my iPods .
At least with Windows , you could reformat your personal computer and install Linux or any number of other PC - compatible operating systems . Can I reformat my iPod and install something else ? Can I uninstall iTunes but keep using the iTunes storage and my iPods ? Apple powerfully deter all that , claiming that the iPod , the iPod software and iTunes are three components of the same product . But that ’s what Microsoft aver about Windows and IE .
Sorry , papa
Here ’s a scenario for you . A consumer walks into a local retail outlet to buy a Christmas present for papa . The Apple iPod “ section ” of the memory dwarf the part where all the also - ran players are display . IPod is distinctly the trusted standard . The consumer buys a bright newfangled “ Fatty ” iPod nano with telecasting .
Dad opens the present tense and is worked up . He follows the instruction , installs iTunes and immediately splurge on a few dozen Sung dynasty at the iTunes store . He loves it , and is an inst convert to portable digital euphony .
The only downside is that he run out every day at the gym , where cardio political machine face TVs that broadcast speech sound over FM radio . Six months afterward , when his iPod is stolen , he go to purchase another musician — this time , he hopes , with an FM radio in it . Several competitor offer this feature of speech , but not iPods . He ’s about to choose a new player with an FM radio set when it hits him : None of his filing cabinet — now amount 300 songs and 50 movies — will play on the new player . He bought and paid for all this content , but it only works with iPods and iTunes .
Apple has an iPod customer for life . Microsoft never had this kind of monopoly tycoon . Sorry , dad . I should have bought you a tie .
Sticker shock
Another clue that a company has monopoly power is when you find yourself hurt sticker shock . How many times have you stood in line at the theater megaplex and marvel at the chutzpah required to charge $ 4.50 for a soft boozing , when the same beverage is one - third the price at the quickie mart 50 feet outside the theater doors ? But — so sorry ! — no outside food or beverage are provide in the theater . The dramatics has a monopoly on soft drink sales , and you ’ll make up what they shoot .
That same daze rippled through the iPhone enthusiast residential district yesterday when Jobs announced with a straightforward face that iPhone ringtones ground on iTunes songs would be the full price of the call , plus 99 cents excess . What ? The full song costs 99 cents ! How on Earth can Apple seriously charge the same amount again for the power to hear just 30 second of the song — the same length as the gratuitous iTunes “ samples ” ?
Apple fully see the power of monopoly pricing . The society has sell the 8 GB iPhone for two prices in its unretentive , three calendar month of existence : $ 599 and , now , $ 399 . When the iPhone was the only direction to get the whole multitouch , big - screen , Wi - Fi iPod experience — when the product had no alternatives — the toll was $ 599 . One psychoanalyst estimated Apple ’s price to build an iPhone is $ 245.83 . I do n’t know if that ’s true but , if so , more than half the user price was profit . That ’s theater sodium carbonate pricing . But as soon as Apple introduced an alternative to the iPhone — theiPod Touch — Apple dropped the Mary Leontyne Price by one - third .
envisage if another company were allowed to vie in the OS X media player market . These players would all drop to below $ 300 . Do n’t contain your breath , though ; it ’ll never happen . Apple has the power to exclude all others from software than runs on its media players . Microsoft could only dream of such power .
Apple the copycat
Ten years ago , Microsoft haters complained that Windows follow the Mac OS to market as a graphical user interface , copying the Mac ’s feature of speech such as folders , wish-wash cans , resizable windows and other constituent . That ill was repeated with each new interlingual rendition of Windows — Apple was the innovator in the operating organization space , and get there first with a host of cardinal feature of speech . Microsoft just came along later , duplicated features that Apple open up , and glean the welfare because of its monopoly power .
But who ’s innovate now ? The LG KE850 was gain awards for its full - sieve , touch - screen , on - screen keyboard before Jobs even announced the iPhone .
The best thing about the iPhone and iPod Touch — the warm - and - fuzzy multitouch UI with gestures — was n’t new , either . Various labs have been shew interchangeable UIs for more than a tenner , and even Microsoft demo a in full realized 3 gigabyte UI in May , well before Apple shipped the iPhone . Microsoft will ship its tabletop UI , yell Microsoft Surface , in November , and Apple will likely get in this space with a 3 GB UI months or years after Microsoft does .
And Wi - Fi in a media player ? Ha ! Microsoft ’s funky Zune had that almost a class before Apple did and SanDisk ’s Sansa Connect with Wi - Fi was released last June . Apple even stole the name for its iPod Touch production , according to HTC , which sell a touch - screen smart phone called the HTC Touch .
Do n’t get me wrong . I call up Apple ’s execution of these features is far dear than its challenger ’ . And it would be horrible decision - making to not build up the iPhone merely because others pioneer central feature of speech . But that ’s not what I ’m talking about . I ’m talking about Apple doing what Microsoft did : dominating the marketplace with features other companies had first . If it was sightly to slam Microsoft over Windows , it ’s fair to mosh Apple over the iPhone and iPod Touch .
Apple the yobo
Microsoft used to be the big bully , pushing everyone around and dictate terms to partners . Microsoft has drop off its border in this respect — most of Microsoft ’s major resellers brazenly pitch Linux . Even Intel — the “ tel ” part of “ Wintel ” — is powering Macs these days . Microsoft is still profitable , but it has misplace dominance — and has lost its reputation as the bully nobody can say no to .
Meanwhile , Jobs has of a sudden become the most feared man in Hollywood , gasconade Thursday about Apple ’s scary ascendance in digital media sales . Apple has sold more than 3 billion songs and 95 million TV shows via iTunes . While music CD cut-rate sale crash and burn , almost one - third of all music sales are now digital . As Jobs euphemistically aver yesterday , “ iTunes is leading the way . ”
Although full details have n’t been revealed , NBC apparently want more “ flexibility”to consign higher toll for its TV display on iTunes . Apple said no , and NBC was sent packing . NBC now plans to sell show on substitute positioning , such as its own Web site and on Amazon.com . prognostication : NBC will come crawl back to Apple and solicit the company for comprehension , and on Apple ’s terms . Why ? Because iTunes is increasingly becoming the only venue in which media company can succeed selling music and boob tube show .
Job govern like Bill Gates never did . If you desire to succeed in the digital music or downloadable TV business , you ’ll do thing his way .
Why I endorse Apple
You see , my point is n’t that Apple ’s develop sorry reputation is merit , but that Microsoft ’s was n’t . All that evil monopoly hoopla , court type and public posturing directed for so long at Microsoft drained DOE and resource from the intact industry . The market , however , corrects issue such as that . In the case of Microsoft ’s “ monopoly , ” Linux , Firefox and now Apple prove that customer always had choices .
The same goes for Apple .
As pundits , bloggers , users , politician , Hollywood big shot , regulators , lawyers and competitors increasingly whop Apple , charge it of unjust play and call for sound and regulative activity , I will defend it , as I champion Microsoft . It ’s fun to slam braggy , hefty companies that are dominating their market place . But in the terminal analysis , Apple has make its growing power and influence , just like Microsoft did .
Is Apple a monopolist , ape and bully ? Yes , and deservedly so . And if anyone thinks Apple ’s success is a job , well , bringing in the lawyers was n’t the solvent for Microsoft , and it wo n’t be the solution for Apple .
Mike Elgan writes about technology and global technical school finish . Contact Mike at mike.elgan@elgan.com or his blog , The Raw Feed .
