Tuesday, June 19th 2018

Is Apple (NASDAQ:AAPL) iPad a Threat to Microsoft (NASDAQ:MSFT)?


Sunday, April 4th, 2010

The very predictable assertion has already been thrown out there that the Apple (NASDAQ:AAPL) iPad is one of the greatest threats to Microsoft (NASDAQ:MSFT) in their history, and they're doing nothing about it.

In a Bloomberg interview, Stephen Elop, president of Microsoft’s business division, said there are no plans in the works to develop an iPad-friendly version of Office software.

Some members of the Apple cult acted as if this were the end of the world and did the inevitable comparison to make it look like Microsoft doesn't get it and they're going to be crushed by this in the future.

Of course the fact that this is being presented in this ways shows the Apple followers know it's important for Microsoft to create something for Office with the iPad, as it would reinforce its importance, which when you get past the marketing hoopla, hasn't convinced that many people that's the case; at least in the business world, which is the real lucrative market out there.

Elop added that Microsoft would "wait and see" before committing resources to a potential project.

From the beginning Apple is pushing the iPad out to the business community in hopes of capturing their attention; they've created a business Web site for that purpose, explaining some of the products and services which could be beneficial for businesses that use it.

The truth is this isn't a bad move by Microsoft at all, as the iPad is far from a surety, no matter what the initial push or success is, as that's all the Apple faithful buying it. What will determine the success of iPad is if they can push past the faithful to the general consumer and business markets. They know that, and that's why the Apple followers are criticizing Microsoft in an effort to manipulate them into being shamed because they don't see the future greatness of iPad as a business tool.

The iPad is no threat to Microsoft in any way, and if it does start to make enough penetration into the business sector, at that time Microsoft will create an Office version to go with it.

Those at Apple, again, know the big boost they would get if Microsoft were to get on board right away, as it would affirm their assertions. Obviously this is way premature, and the iPad has a long road ahead of it before it has a possibility of becoming successful, and to say Microsoft is under threat from it is at minimum a joke, and at best, years away.

But there is no threat because if the iPad does become a business tool, Microsoft will be there to offer Office for it.



Article by Gary B

The views expressed are the subjective opinion of the article's author and not of FinancialAdvisory.com





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Comments:

Luap (April 4, 2010 4:30 PM)
Hmm. Won't Microsoft Office crash if the user can't type at least 20 word per minute? A lot of iPad users (unless they cough up and pay for a Bluetooth keyboard) will have trouble keeping the software functional. BTW you meant "lose much more", not "loose." Lose is when you don't win, loose is your girlfriend. Moron.
Winnie (April 4, 2010 2:46 PM)
@Mike... you obviously don't understand how little is made from W7 Starter nor how much is made from Office. It's a huge margin difference and volume doesn't even come close in that form factor.
Ken (April 4, 2010 2:43 PM)
@Mike; Absolutely correct, and at $10 per iWorks app, they will need to do a better job than Apple to have users buy their Office apps.
Mike (April 4, 2010 11:15 AM)
The threat to Microsoft isn't that they won't have a version of Office that runs on the iPad. The threat is that netbook buyers will opt for an iPad instead of a netbook and Microsoft won't get paid for Window 7. Netbooks are the fastest growing segment of the computer market, and if Microsoft stops getting its obligatory $60 per computer sold they will loose much more than they stand to make from their Office suite.
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