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Home >> Business
UPDATED: 16:50, January 26, 2006
Microsoft and Apple -- friend or foe?
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For many years, the relations between software giants Microsoft and Apple have been delicate, sometimes they are collaborators, sometimes rivals, as Apple has shown in recent years more and more power in the IT circles.

Attachment and resentment
As the two sides are always rivals in operation system, relations between the two seem to be very delicate and complicated.

Not long ago, there were rumors saying Microsoft announced it would end commitments to Mac's Internet Explorer browser service since January 31st this year.

Later on, Microsoft said it would neither continue to develop Windows media player for Apple's Mac OS X operation system, nor provide relevant supports for Apple's users, although it would continue to provide service for Mac's WMP9 with upgraded technologies.

After that, rumors about the break-up of the two spread in the industry.

However, Apple CEO Steve Jobs announced at Macworld Expo on January 10 that Apple will continue to cooperate with Microsoft in the coming five years. In the meantime, Apple unveiled its first computers using Intel chips, which power most PCs using Windows.

Microsoft also said it had signed a five-year pact with Apple to develop versions of Office for Macs and announced plans to release a version of Office that will be compatible with Apple's new Intel-based computers.

The rumor broke. What is the reason for the on-and-off relations between Microsoft and Apple? Profit.

Jupiter Research senior analyst Joe Wilcox says there are two reasons for Microsoft to give up supporting Mac's WMP, one is the resource allocation on Windows Vista and WMP11, the other is that Microsoft could neither control Mac OS X operation system, nor get profit from the system.

Technology Business Research analyst Michelle points out that Microsoft stopped IE development because IE is a fully free software, while choosing to support Office is due to Office's commercial value. '

So far, Microsoft has moved its focus on business customers, Windows' Office and Messenger have a more promising prospect, said Michelle.

He also noted Microsoft sees big sales profitable from Mac Office although the direct beneficiary is not Microsoft, but Apple.

"From Microsoft's perspective, current profit is secondary, the more important thing is how to meet customers' needs, this could explain why Microsoft and Apple could get along so well so far", said Scott Erickson, director of product management and marketing for Microsoft's Mac business unit.

Google, Microsoft's new partner?
Although the break-up rumor has been quelled, people still question the relationship between the two, Business Weekly analyst made a bold prediction that Microsoft may form a new partnership with Internet search king Google soon.

In the past, if someone said Google and Microsoft may cooperate, many people would say it was absurd because confrontations between Google and Microsoft have scaled up in recent years.

However, due to Apple's outstanding performance in the past two years, Microsoft and Google began to view Apple as their archrival. After Mac was unveiled, Apple stock climbed to 72.13 billion US dollars, surpassing world No. 1 PC maker Dell.

After Apple combined its iPod and iTunes to form a new business mode, Microsoft and Google lagged behind in digital music market. Currently, Apple has become the common research target of Microsoft and Google.

According to market analyst of the Business Weekly, although Microsoft will not immediately collaborate with Apple, the great charm of Apple has not only attracted a large number of consumers, but also become new favorites of Wall Street, even the whole technology industry, which will surely arouse jealousy.

Confronting with the ever-increasing powerful Apple, from the strategic view, Google and Microsoft may form alliance as both are Apple's rivals.

Google and Microsoft are also competitors in the field of e-mail box, instant messenger software, Internet search engine and virtual map search.

But once Google and Microsoft join hands, people will reasonably believe the two sides will offer customers a wonderful service based on Microsoft's Windows, much better than the less popularized Apple's Mac. Maybe Google will be Microsoft's ideal potential partner.

The article by Yu Shan is published on Economic Information Daily and translated by People's Daily Online


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