Microsoft late to the innovation party, again

Almost a year after Apple's launch of the iPad, and several months after Android-based tablets from people like Samsung, Microsoft are finally arriving at the tablet computer party. Reports suggest they will announce plans for a “slate” device in January. The problem for them is that the party is in full swing. All the best food and drink has gone. And everyone has a dance partner. Microsoft is the geeky kid in the corner all on their own, that no-one wants to talk to.

Microsoft actually presented a tablet computer 8 years ago (see CEO Steve Balmer on the right). But they didn't bring it to market, and got beaten to the punch.

Poor old Microsoft. They have made a horrible habit of becoming bit players in new growth markets, despite having a head start.

Does anyone remember the Zune, their iPod clone? Their Bing search engine is still miles behind Google, despite millions of marketing spend. And they have a puny 3% share of smartphone operating systems, despite launching in 2001, seven years ahead of Apple who have 17% and eight years ahead of Google's Android system, who have 25%. In all of these markets they are a weak "Follower brand".

Why do they keep repeating the same mistake over and over again?

1. Struggling to stretch

The good news for Microsoft is the performance of its core business, the Windows Operating system. Here they are the clear Leader Brand, with a 90%+ share. This business helped the company actually do very well in the latest quarter, with revenue up 25%. As Chief Financial Officer Peter Klein said “Windows 7 continues to be a growth engine".

But you wonder if the importance of Windows, along with the Office productivity suite, means that other newer businesses such as Zune and Windows Phone struggle for resource and budget. In contrast, at Apple each new launch looks like the pet project of Steve Jobs, and so gets all the attention it needs.

2. Techno-obsession

I get the feeling that Microsoft are much less close to what people really want, and more intent on features and gizzmos. The new Windows Phone system has these fancing moving "panels" on the front showing the status of different tools such as Twitter and Facebook. But so what? I'd rather have all my key services visible like on the iPhone. Bing has more bells and whistles on its homepage than Google, but this makes in more cluttered, and so on.

3. Lack of product design wow

Microsoft is not a product design business, its a techinical software company. When it makes its own products, like the Zune they look clunky. And when it uses partner companies, the results are not much better. Look how old fashioned that Windows phone looks next to an iPhone.

The exeception in the XBox. That is pretty cool. And I wonder if this is because it is treated as a separate company within a company, with its own culture and way of working?

Perhaps the way forward is to spin off these newer businesses, such as phone, MP3 players and search engines, allowing them to step out of the shadow of the Windows/Office business?

Anyway, it will be interesting to see if the Microsoft tablet does any better than the Zune and Windows Phone. In my view, it will be the first candiate for a "miss" when we do the 2011 Hit or Miss survey ;-)

Comments

[medion akku]

hello , guys you are.

[wholesale electronics]

Hey,this is one of the best posts that I’ve ever seen; you may include some more ideas in the same theme.Great interview and page layout! I’m still waiting for some interesting thoughts from your side in your next post.20110129pilipalagaga

[David Taylor (brandgym)]

Hey Rob, Belated thanks for taking time to comment on the post. I am indeed an appleoholic, hands up.

I think your comments on user interface are interesting...but I'm pretty sure that the Apple look and feel is here to stay. One key reason is this is what today's new users (e.g. Tweens and teens) expect...their expectations have been set by Apple.

You're right on Android showing you can grow fast, fair point. But vs. MS Google just seems so much nimbler, web-centric, aggressive. And don't they have a much better phone line-up than MS, with Samsung, HTC, Motorolla.

On US Smatphone shares Comscore indeed shows Apple at 25% behind RIM and tied with Android. Although Nielsen shows Apple stronger with 28.6% vs. Android 26.1 and RIM 25.8% (they don't bother to mention MS ;-) ): do you know why there is such a difference in RIM shares in these 2 surveys?

Finally, Android vs. Apple IoS is in a way not a fair comparison. The iPhone is one phone, vs. Android being a whole range of them, using the same software. Given this
fact, the iPhone is a huge success.

Net, Apple should indeed be worried about Android. But MS? Not even on the radar.

[Rob Chapman]

David - when you don your Apple Fanboy hat your writing becomes terribly biased (a common trait in people afflicted by Steve Jobs worship).

Here's two observations in response to your piece.

Firstly, according to Comscore's latest US Q3 smartphone usage survey Apple just lost first place to Android. A phone operating system that's only been around for roughly 50% of the time of Apple's. So proof if you like that someone can "appear" and steal the crown. Arguably Android is worse than iOS in many ways. And yet still it gains more market share. You might also be interested to know that the same survey shows Microsoft with 9% (versus about 25% for iOS and Android). Oh yeah MS has had a phone operating system for ages. Neglected admittedly but a base to build from, they're not starting from scratch. MS also are sinking (allegedly) $1B into Windows Phone marketing. That must move the dial. Apple above all companies proves that great products don't equal success. They took more than 20 years to actually beat Microsoft at something. A great product sometimes find success despite marketing, sometimes because of it. A poor product can also suffer the same fate.

As for the Windows Phone looking out-dated my prediction is that User Interface design (whether it be websites or phones) is about to enter a phase of going back to 2D and square look and feel. The cutesy round corners, bevelled edges, shadows, reflections and "stickers" are waning in their appeal. The novelty has worn off with users. Some proof - look at the BBC website. It had all those traits 6 months ago and now the news pages are moving to this new (although you think it's old) style. My bet is that at some point in the next 2 years Apple will reboot iOS to look like this. Oh yeah that means iPhone's will look like Windows Phone (if I'm right).

Rob (retires to a safe distance).

Comscore piece
http://www.engadget.com/2011/01/07/comscore-android-jumps-ahead-of-ios-in-total-us-smartphone-subs/

[Eddie]

Ha! Oh well... I'm sure they'll find an audience somehow!