“When I see Apple drop the price of their struggling, lightweight productivity apps, I don’t see a shot across our bow. I see an attempt to play catch up.”
— Frank Shaw, the outspoken Microsoft vice president of communications, after Apple this week announced it would make some software and operating system updates available for free. As mentioned by the Mercury News’ Mr. Biz Break, analysts see the move as a challenge to Microsoft’s model of charging for upgrades to its software and operating system.
Shaw isn’t the only one with the fighting words. Apple CEO Tim Cook reportedly said Tuesday at the company’s iPad unveiling: “Our competition is confused. They’re turning tablets into PCs and PCs into tablets. Who knows what they’re going to do next?”
Meanwhile, while Microsoft’s earnings beat expectations Thursday and it broke out figures for sales of its Surface tablets for the first time — they doubled from the previous quarter. But the company also saw a 7 percent drop in consumer licensing and devices revenue, or sales from Windows and Windows Phone, as it deals with a slowing PC market and as it lags in smartphone market share.
Photo of Microsoft logo from Reuters archives