Published on February 27th, 2014 | by Mr Review0
Apple’s “Free Software” plan to stifle Microsoft
Apple have launched a brand new hardware that offers free software in a pioneering fashion to lead the way for not having to pay for any apps ever again! This comes from the free update for OS X, Mavericks, for existing Mac users . In addition to this, iLife and iWork also cost nothing for the consumers who purchase any of their new computers or hardware.
It appears that the main aim is to attract consumers who buy any one of apple’s hardware equipment, who then is entitled to gain access to free software for as long as they use their equipment. This is comparable to Google’s free Drive wares. How will this affect Microsoft? We’ll reveal Apple’s big strategy to gain market share and impact Microsoft’s own strategy.
The attraction to Apple that keeps you hooked
Apple are renowned for making premium computer systems which cost significantly more than your average pc. It is quite apparent that their offer for free software is a wonderful opportunity to add value for their existing users, inviting both old and new ones to stay as customer for the long run. For instance, you will get free Maverick updates even if you owned an iMac desktop that was four or five years old.
Apple’s strategy is simple even for iOS, you purchase an attractive iPhone or an iPad and you then can update for free to the newer versions of iOS. The give the consumer what they want, which is unlimited updates so that they don’t need to pay for anymore. It makes plain sense for Apple, as Google have many products online for free, so their thinking is in line with the saying “if you can’t beat them join them”. They’d rather much prefer their customers to use something of theirs that was free than another competitor’s software.
Microsoft needs Nokia now, not Windows
Microsoft had monopolised the pc and software market for both home users and business users for decades. Despite this, the tables have turned as the licensing costs are astronomical to make a profit for the Redmond giant.
To be current with how software is paid for nowadays, they moved over to a subscription based strategy. For instance there is Office 365, which costs a yearly subscription fee of £79.99 a year. Compare that to Apple’s iWork that comes with the purchased hardware and Google’s range of productivity apps, which are both free, which one will consumers use? Office 365 comes at a yearly fee, but Apple’s software means that it will not allow Microsoft’s apps on their systems.
Microsoft can no longer compete with Apple’s proprietary hardware, tied in with heir software, by selling licences to low cost to laptop and pc manufacturers. This leads Microsoft to its next strategy, to have its own hardware with the help of Nokia.
That is setting them back a hefty sum of $8 billion to get up to speed with their own hardware, and entering into the tablet market with their very own surface tablet production.
As they are also competing against free software from other big competitors, they are beginning to change their game plan and are leaning on towards profiting from hardware sales such as premium smartphones. A lot rests on Microsoft’s new phone with Nokia’s sophisticated polycarbonate design; will this compete and come out a winner against the new iPhone 5s and 5c? Only time will tell.