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Apple's Renewed Rivalry with Microsoft Heats Up

Strategic Insights

— 1 min read

Apple Computer Inc. has launched a fierce attack on its arch-rivals Microsoft and PC makers, unveiling new computers that complete its transition to industry-standard Intel chips and showcasing sleek new features of its next operating system, Leopard. During its annual developer's conference in San Francisco, Apple CEO Steve Jobs made scathing comments about Microsoft's inability to innovate, highlighting the company's $5 billion annual research and development budget that he says has yielded little in terms of new ideas. Jobs further emphasized Apple's commitment to innovation by announcing features in Leopard that will make it hard for Microsoft to duplicate, including Time Machine, a program that automatically backs up files and restores them individually.

Key Takeaways:

  • Apple has completed its transition to industry-standard Intel chips, solidifying its position in the market.
  • Apple's next operating system, Leopard, will include features such as Time Machine, Dashboard, and improved videoconferencing, calendar, and e-mail programs.
  • Microsoft's forthcoming Vista operating system will duplicate features already built into Apple's operating systems, according to Steve Jobs.
  • Apple's new Mac Pro desktop and Xserve computers are more powerful and less expensive than comparable Dell machines.
  • Apple's Senior Vice President Phil Schiller highlighted Apple's commitment to innovation, saying "Not only do we make better products, we make them cheaper."
  • Apple's Xserve computer server will be released in October and will retail for about $3,000.

Statistics:

  • Apple's new Mac Pro desktop computer comes with two Intel Xeon chips and space for four hard drives, storing up to 2 terabytes of data.
  • The Mac Pro sells for about $2,500.
  • Apple's annual research and development budget is significantly lower than Microsoft's $5 billion expenditure.
  • Microsoft plans to release its Vista operating system in early 2007.

Sources:

  • • Apple Computer Inc.

• Microsoft Corp.

• COX News Service.

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