Technology innovations tend to come about gradually, but every now and then we get to see a defining moment or period in time. Consider what has happened since August 2011.
On Aug 9, Apple surpassed Exxon for a short time as the largest US company. The next week we learned that Google would acquire Motorola’s Handset business, giving it ownership of some of the most popular Android mobile devices. The same week HP announced that it would consider selling off its PC business and discontinue production of it’s tablet. HP lowered the prices of its tablets, and sold out so quickly it had to reconsider its decision. Finally, at the Build conference in September, Microsoft announced Windows 8, which is targeted at tablet-style devices, but intended to provide a similar user experience on phone, tables, and PCs.
Apple has once again changed the way we think about computers. The iPad bridged the gap and blurred the line between a smartphone and a personal computer. It says, “Hey, your phone is really a computer,” and at the same time says “Hey, a computer can be extremely mobile.”
In an attempt to repeat history, Microsoft has begun a push to commodotize the hardware by producing an operating system targeting tablet devices and phones. But this time, Apple is larger and more powerful. They have always sold premium products, which limited their market share, but their mobile devices have a lower price tag. Additionally, they’ve moved into earning commissions on music, books, and software (apps).
A threat to both companies (but more so to Microsoft) comes from the cloud giant Google. Google is attempting to commodotize the operating system market. If everything runs through a browser, the device doesn’t matter. And, by the way, they are producing operating systems for mobile devices, tablets, and PCs, not to mention now have control of a handset maker.
While Apple seized the biggest trend to affect computing hardware since PCs, Microsoft became the victim of its own success. (HP’s annoucement is a casualty of the declining PC market.)
Windows 8 is a real gamble. An operating system that provides a similar experience on desktops, tablets, and phones will be very welcome by enterprise developers, but it will be difficult to pull off, especially with expectatons of backward-compatibility.
The world will want a cheaper tablet. If Apple lowers prices, it will water down its profits and its brand. That leaves Microsoft and Google to battle it out. Google is in the lead with the Android market, but what Microsoft has put on the table is better for enterprise customers. So, the race is on.
