The (Redmond) Empire Strikes Back - Page 2

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Click on the graphic for a larger view. Source: Microsoft

Not avoiding Vista?

The "Apple Tax" isn't a formal campaign, nor is it being run in conjunction with the hardware OEMs that are being used to draw distinctions between the two companies. Paulus acknowledged that the OEMs took a pass on the initiative. Also absent from the tax chart is any mention of the operating system, but Paulus said that's not to downplay Vista.

"We're not actively avoiding Vista," he said. "The progress we've made on that product is incredible. No doubt we made some mistakes on that thing. We made architectural changes late in the development cycle that didn't have time to settle before release. I would argue that the majority of those issues have rippled out of the system."

But using partners, however close, could backfire on Microsoft, warns IDC analyst Richard Shim. "It may not be a big favor to their hardware partners considering Microsoft doesn't have skin in the game to pick a hardware fight with Apple. Indirectly, it could hurt them, depending on how hard they push it," he told InternetNews.com.

Shim also wonders how effective the campaign can be, since it's pretty well-known that Apple sells an expensive product. "The impression you could get is all Windows systems are really cheap. Essentially what you are doing is saying Apple is a premium product and you buy them when you can afford one, and if you can't do that, you buy these PCs, and that's a danger. OEMs don't want to be viewed as not being as good as Apple," he said.