Masters Tournament
Podcast: Play in new window | Download
Look at the photo with this column. It’s of an audio microcassette I found in my desk drawer yesterday while madly looking for something else in my overgrown office. As you may be able to read on the picture, it is an interview with Bill Gates from June, 1998. That’s the interview I did for my ill-fated Vanity Fair piece on the relationship between Bill Gates and Steve Jobs. It is almost sixty minutes entirely devoted to Bill talking about Steve. Quite a historical document, especially since its contents have never been published. And they won’t be here, either, except for one short quote that stood out when I listened to the tape today after almost 12 years.
“What I can’t figure out is why he (Steve Jobs) is even trying (to be the CEO of Apple)? ” wondered Bill. “He knows he can’t win.”
It is easy to see what Gates meant if you look at a comparison of the two companies in June, 1998. Microsoft stock was around $29 with a market capitalization of $250 billion. Apple’s stock was at $7.25, triple what it had been a year before when Microsoft had stepped-in to bolster Apple with a $150 million investment, but still worth a market cap of only $6 billion. In terms of products, market share, cash flow, and general strategy Microsoft had it all over Apple in 1998 and the idea that Jobs would ever catch up to Gates was, at the time, ludicrous.
But look at the two companies today. Jobs is still running Apple despite cancer and a liver transplant while Gates has moved on to saving the world at the Gates Foundation. Microsoft is worth $240 billion, a tiny drop from 12 years ago, with the shares now around $27 (down from $29). Nothing gained in more than a decade. Apple shares, on the other hand, have gone from $7.25 to almost $240, Apple’s market cap has risen more than 33X from $6 billion to $220 billion. And Cupertino’s cash hoard today is almost exactly the same as Microsoft’s at around $40 billion.
It’s pretty easy to argue that Jobs did win. Certainly Apple has the mojo lately with its string of home run products like the iMac, iPod, iPhone, and now the iPad. Even Mac market share is up in the double digits and Apple’s profit margins are the best in the industry. The trend line is definitely up for Apple and mildly down for Microsoft.
What Bill Gates didn’t count on when he declared Jobs a loser back in 1998, was the Californian’s tenacity. It took 12 years to do it, but Apple is well positioned now to take Microsoft’s crown.
I mean it. Look at the downward price erosion of Microsoft Office caused by a combination of Open Office and iWork, which is down to $30 on the iPad.
How long will it be until Apple is giving iWork away to sell hardware — an option Microsoft doesn’t have? Not long. By then a bit more of Redmond’s goose will have been cooked.
Digital market leadership is now Apple’s — not Microsoft’s — to lose.
You will not make to look for your order to be saved or shipped; once you take placed your put, you will start downloading the chosen platforms without blowing your time or money. On the contrary, you may start working as soon as you get the programmes. If you want to download Software, we will also provide you with all the necessary updates. For case, downloadable Software Program will come along with the possibility to receive the latest updates by simply pressing a key. You will not have to enter a plans’ store again and you will not have to pay an extra amount of money in say to purchase the CD with the latest update.
I’ll start the bidding for the tape at $42.
“Look at the downward price erosion of Microsoft Office caused by a combination of Open Office and iWork…”
And Google Docs.
Hi!
Microsoft will rebound into the consumer market with the new Windows Phone 7 and hopefully introduce the Microsoft Courier, Who wants the Ipad anyway. It’s only usable for surfing. I bet not many people except a portion of Mac / Iphone users will buy this. There will soon be better Windows 7 and Android slates around. Apple is experiencing its 15 minutes right now, but the competition is not only catchuing up, but surpassing Apple on technology.
Nils- it isn’t exactly ‘technology’ that makes the iPad so desirable. There are a lot of people who need what the iPad and other more accessible platforms offer over the the fastest game machine out there. It’s marketing to everyone- not just you.
HP Slate and MS Courier are cancelled. Faced with a bout with Apple, HP and Microsoft wet themselves and then ran screaming to the door. No contest.
Cool stuff, but the posts don’t display properly on my iPad, perhaps you could check that out. Thanks, anyway.
Wow wie immer ein super Text. Wenn doch nur alle Blogs so schön zu lesen wären. Gruß Eura Graziani
Masters Tournament followed by Minute To Win It on NBC, Sunday is gonna be a good day.
I was wondering what the 150 mil would be worth today in Apple shares?
Loving the site so much to choose from!
Nice article. I’d say the upcoming digital battle looks more likely to be Apple vs. Google, than Apple vs. Microsoft. I would really like to hear what else is on that tape.
Now it’s done !
Apple’s market cap hit $222 billion today. Microsoft’s was $219 when the closing bell rang.
What a good internet site and informative posts! Thanks
Great blog. Just enough information. The colour is sexy.
If a company’s market cap is the same as it was 12 years ago then it has lost a vast amount of value because it hasn’t kept up with inflation. Microsoft’s top market cap was not $250 billion but $500 billion… today it is $221 billion.
Adjusted for inflation thats about an 80% drop.
hi! do you know where I can download the gremlins theme song (mp3)?, thank you..! Mike.
Hi, Natural Penis Enlargement – GetBiggie has a excellent guide on how to increase your penis size by 1-4 inches using natural safe techniques.
Hey, I love all your writings, keep them coming.
Excellent point, wonderful website. Look, did you guys hear about Wow planning to implement Real ID on their message board? Guess they came to the realization that that’s no way to win at wow, as they reversed their decision. Now we can all return to enjoying World of Warcraft without worrying about compromised privacy. And they can return to working on Cataclysm. WooT!!!
Microsoft is not any stranger to having partners galore within the telephone enterprise, but its lineup of producers for the upcoming, surprisingly promising Windows Telephone 7 launch is not any less impressive. After plenty of rumoring, Microsoft has confirmed that Dell and HTC will probably be making Windows Cellphone 7 telephones, along with ASUS, LG, and Samsung who had already been confirmed. All of these companies should have their stamp on hardware by the tip of the 12 months, with the launch of the OS still vaguely slated for the “holidays” We now have little doubt that each one five producers can build some compelling, attractive hardware, however we’re particularly enthused to see Dell actually entering into the sport after the spectacular Streak and that drool worthy leak a little while back. read more at http://www.wp7forum.com followers group.
Have try Playing Casino Online but now Play Online Poker that’s the better choice.
Right after reading this posting, I pondered the same point that I invariably wonder about when scanning new blogs and forums. Just what do I believe about this? Precisely how ought to it impact me? This and extra posts on your weblog right here definitely give some stuff to contemplate. I fundamentally ended up right here by way of Yahoo when I was very first performing some web research for some course work that I’ve. Generally excellent times browsing via and I’m hopeful that you’ll keep on writing new posts. Cheers!
Great site dude Thank you
What’s captcha code?, pls provide me captcha code codes or plugin, Many thanks in advance.
I found your site via yahoo thanks for the post. I will bookmark it for future reference. Thanks Boxing News is a great site for related tips.
cheap VPS
Site owner, I may be right in saying your web server stopped functioning yesterday because I stumbled upon this page through Google and all I saw was a connection timeout page. I would email your hosting provider to make sure that it doesnt happen again as your losing visitors. I was using Safari browser if that helps.
Good writing on this subject. Can’t wait for your next blog.
Almost everyone that earnsan income on the internet (even the millionaires) do so through affiliate marketing. Being successful in affiliate marketing involves applying the formula that makes other affiliate marketers successful. For example, autoblogging. Autoblogging is one of the least well-known forms of making money online for quite some time… primarily because it’s quite difficult to make a good auto-blog. Yet, when done right, it can provide you with a constant passive income with the only real work required being the setting up process. Video Marketing, and several other marketing strategies are all designed to drive traffic to your site, can be incorporated organicly in order to raise the position your site appears in the SERPs when someone searches for a term related to your site. And yet, even this can be totally automated.
I love reading your web site.
I found your site via google thanks for the post. I will save it for future reference. Thanks Berkey Water Filter is our specialty.
i love this site and always i will come back.very useful information inside.
Just found this site in Google this week. Been following it for a few days now. Great blog. Bookmarked!
I will be back!