Microsoft aims to open ’stores in proximity’ to Apple Stores

July 16, 2009

Back in the ’90s, Microsoft nearly flattered Apple to death with its imitations of the Cupertino, CA-based company’s Macintosh operating system. Today, as Apple’s innovative computers, media players and smartphones increasingly dominate, Redmond’s ham-fisted efforts to keep up seem tired and sadly misdirected.

Quoting Microsoft’s chief operating officer Kevin Turner, Reuters (AsiaOne) reports that the software giant plans to open retail stores in close proximity to Apple’s own brick n’ mortar locations in an effort to stem years of market share losses and decaying public perception of its products.

“We’re going to have some retail stores opened up right next door to Apple stores this fall,” said Turner at a webcast conference in New Orleans on Wednesday. “Stay tuned.”

Further, a Microsoft spokeswoman has said “there will be scenarios where we have stores in proximity to Apple,” and that some stores would open “in the Fall timeframe.”

Microsoft is attempting to copy Apple’s success in the retail space, where the Mac, iPhone and iPod maker has established an image and buying experience that has helped it not only solidify its virtual lock on the media player market, but also steadily erode Redmond’s operating system monopoly.

Where’s the vision?

I’m no retail consultant, but what parts of Redmond’s brand image and largely OEM business model—don’t forget the developers, developers, developers…—lend themselves to retail stores? Also, how will opening store fronts change the widely held perception that the company’s flagship Windows and Office products are bloated and insecure?

That is, Cupertino’s Apple Stores helped educate the public about a superior product, one that few consumers had any experience or knowledge of. Microsoft’s problem is exactly opposite in that nearly everyone has used their products—Vista, Zune, PlaysForSure, etc—and thereupon relatively few have a positive image of them.

Again, how exactly how will a few or a few thousands shops change that?

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7 Responses to “Microsoft aims to open ’stores in proximity’ to Apple Stores”

  1. NotApple FanboyLikeTheAuthor:

    Geez, take off the blinders and try writing with a little objectivity, Fanboy.

  2. Akers:

    Microsoft won’t make that much of a dent in Apple’s market with the stores. Most of the reason people go into an Apple store is to grab an iPod. How many people really think ‘Ohhhhhh a Zune?! Wow, I need one of those?!’

    Not many is the answer. iPods are what people like Apple for, then they go in and play with all the gadgets and Macbooks and iMacs – if people tried playing with a Windows PC, how long would it take before some idiot managed to screw things up a lot? Probably not long. The products they could sell wouldn’t have the same consumer effect as Apple products; if you want an Xbox, you go to a game store, but Apple products tend to be bought from manufacturer.

    Also, how on earth can Microsoft hope to match the customer service offered in an Apple store? Too many things that could and will go wrong.

  3. Harvey:

    This is going to increase business… for Apple ;-) . A consumer goes into the Microsoft store and sees the poorly designed and built Dell computers there, then they go next door and see Apple’s computers. Thanks for the side-by-side comparison Microsoft :-)

  4. Aquaadverse:

    I’m not real sure that you could call what Macs are doing as dominate. 9 out of 10 computers are sold aren’t Apples. They did a remarkable turnaround, but calm down.

    And that’s in the Desktop consumer segment, the share of Business use as Server OS is still effectively 0.

    They dominate mp3 players and no doubt would be the leader in smartphones if they weren’t locked to a single carrier.

    Microsoft product is already in just about every retail outlet with electronics and software to sell.

    Microsoft doesn’t build computers. And wouldn’t sell computers. The loud and breathless yammering about Apple inventing sex, food, water, air and specialty retail and Microsoft not being able to survive without copying Apple is all very amusing, but Apple isn’t a threat to Microsoft.

    They are a hardware company. Apple is a threat to HP. Apple is a threat to Dell.

    You can run Windows on a Mac. Many Macs end up with a legal Windows license. Microsoft used to sell a lot of software to Apple customers.

    Open Office is a threat to Microsoft. Linux used to be a threat to Microsoft. Maybe Google might become a threat. Once Apple “innovated” themselves into another clone maker, all they had left was a different OS and gullible people to convince Microsoft builds computers.

  5. Larry Winkler:

    Microsoft may have other things up their sleeves.

    I don’t use MS systems any longer, so I don’t know the quality of the, say, movie, audio, etc software that is out there for Window PC’s. That might be eye-opening either one way or another.

    Comparing prices side-by-side adjusted for quality of the hardware, and software for otherwise comparable systems might be informative.

    Quality of the store front, educational expertise (like Genius bar), and staff might be interesting also. Apple has a lead on training, and limited set of hardware and software to offer and educate customers on. MS has a quite a diverse set of hardware and software to choose from. But, they could show off much of the software that is available for PCs for which there is no such software for Macs. A powerful message, even if customers have no use for that particular software.

    MS could get quite snarky, too. MS could bargain with software vendors to highlight their products in exchange for slowing down the vendor’s release of OS X compatible software.

    In addition, the cost to MS of the stores will likely be less than Apple’s cost, given MS will require Dell, HP, Acer, etc, and software vendors to pony up to support store leases. Or, MS, with their financial clout, could drive up lease costs, forcing cost of Apple stores to become prohibitive.

    I think MS is likely to play into their current advertising campaign in the short run, and create new campaigns based on their new stores in the near future. Also, they will push Windows 7 (= Vista + patches).

    It will be interesting to see how Apple responds, and how customers take the side-by-side competition.

    I made my choice to switch to Apple about 7 years ago, and am quite happy to have done so. Other’s experiences may differ.

  6. dj:

    Would that not be called best buy or any other computer/electronics store all the make is the OS and the zune everybody else makes the PC’s that the OS runs on. I do not see a point in opening up a store to sell other company’s stuff and try and say its my store and stuff.

  7. BDD:

    @Aquaadverse- once again, someone who doesn’t get Apple; basing opinion on “domination”…

    Apple makes exactly ZERO attempt to sell to businesses. So that argument is pointless.

    Apple has over 20 billion dollars in the bank, with zero debt, and it continues to grow. That’s all the proof I need that they’re successful. Period.

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