Apple Taxing Users Offering "More" than customers need...Microsoft Sez So

Ina Fried in an interview on cnet, speaks with Brad Brooks of Microsoft.  Who explains in repeated and excruciating detail how it is that Apple "Taxes" its users.  It is an interesting point of view that goes something like this.

You want a laptop.  So you and your PC Wanting self  you might walk in to PC store.   Say you spend $799 and left happy.  OR in Brads alternative universe you poor consumer you, instead you walked into the shiny Apple store and they (clearly unfairly) charged you $1099.  For a clearly superior product.  Now Brads contention is that Since you spent $300 bucks more for the computer that you were "Taxed" unfairly by Apple....  Now setting aside for a moment that the computer and operating system are VASTLY different Assume Brads logic is good.  (strain) 

Now.  Here we are in Brads World.  How much would the "Tax" be in Opportunity time spent clicking on security dialogs, hangs, crashes, lost productivity due to other system being underpowered  do not exist on OSX?   What is the value of your time Brad?  Hmmm?  What if the "comparably equipped" PC actually cost more than the Mac as it often does?  is that a Tax Cut?

It is a crap argument Brad, I like it though,  Its like arguing that the difference in price between "American Process Cheese Food" and a lovely organic imported goat cheese is also a "TAX"

Here is Brad on OSX Vs. Windows viruses...

You know, it's hard to get a direct comparison, Ina. I want to be very specific in any kind of the data or the information that I give you there is that you're running one system versus another. The best way to really look at it is based on the Internet services, and what's really going on out there in terms of things like phishing or other types of scams that can actually happen through your browser or Internet experience. That really is much more of a direct comparison.

Good thing there is not a "TAX" on the cost of rebuilding your system after a virus then.  I guess that fee would be called a "shoulda bought a Mac" fee?

Paying a Premium price for a premium product is not a Tax, it is called getting what you pay for.  

Apple Sucks less than Lehman and AIG

Apple was spanked yesterday (140.36 -8.58 (-5.76%) Sep 15 4:00pm ET) during a 500 point market sell off triggered by Lehman Brothers filing for Chapter 11 protection from creditors.   Fannie Mae and Freddie Mac two companies that together hold HALF of all home mortgages in the country were taken over by the government.  These are not good times.  And for those of you blissfully unaware of what is transpiring in financial markets know this.  If AIG, one of the worlds largest insurers, is forced out of business we will all be worse off.  Things are not good in the economy, this week has been one of the bleakest in the financial markets in the last hundred years (1929)

On the other hand

 

Apple has between 21-25 Billion dollars in the bank.  Mac sales growing 25-50%.   iPhone sales off the charts (as many as 12 million to date), and plans to buy a Mac hit an all time high.

 Apple is just fine selling overpriced, proprietary computers,  overpriced proprietary music players, and overpriced proprietary cell phones.  Be a believer in sustainable margins, sustainable market advantage, and remember cash is king.

Lost in the news today aside from half of Ohio not having electricity,  Citibank reiterated a buy on  Apple with a price target of $287!  You go Richard!  No one knows where stock prices are going but given Apples actual earnings and projected growth for the next year.  It would seem that the performance of Apple stock should suck less than the market at large for the next year.

If you buy this stock you must have money, can you share?  I make all this up.  Really.  If you take the word of anonymous, but deceivingly erudite bloggers including this one. You deserve what you get.  Do real research this is just fun.

MAC to PCs PC to iPhones... Apples journey to Network externalities

Who is going to be MAC to Apples PC in the portables business?  Yea its hard to get your brain around but it that is why Apple has spent so much time and effort courting the development community. (Near free killer development tools and a cheep way to distribute)

 Apple wants to be the company that when choosing a phone potential customers say... "I know MotoNokiaHTC makes a great phone but All the useful applications are on the iPhone" about.  

Apple wants the power of the "Network Externality"  They have aimed their considerable marketing arsenal at all of us and fired their message in every way possible that we want an iPhone, that having an iphone and the internet in your pocket is indispensable. 

 IF I say IF Apple can succeed in getting 50-100 million iPhones into the market AND IF one (OR several) of the developers working on creating applications for the iPhone actually create something that works really well then ....  Then ... 

Everyone will have compelling reasons to use an iPhone because the Network Externality will make the product the product you use simply because it is the one everyone else uses.  

Remember when you (or your grandfather) didn't buy a mac in 1999?  It was because they sucked Outlook or Word or Excel (or some other program) only ran on a Microsoft PC, you had to share files and BLAM no choice your buying a PC.  

Apple currently has as much as 25% of the US smartphone market share.  Their share of this market and the size of the market are going to grow explosively over the next few years (demographics get over it).  

Think about it... Think ahead to the time you will be able to pick up a version of the  iPhone for $50 bucks at the mall kiosk.  There are other phones and they will gain in functionality but really who would not buy the phone that has 2500 (as of this morning) applications you can download?  Apple is going to be one of the dominant players in the smartphone business and  to complete my metaphor Apple/iPhone is PC because it will hold a dominant position in this product category for a very long time.