Microsoft Corp. (NASDAQ: MSFT) will be employing another "me too" move this year as it opens retail locations near existing Apple, Inc. (NASDAQ: AAPL) retail stores. This is apparently meant to be a second act to the "laptop hunter" ads the software giant has been running that tout the affordability of Windows-powered laptops above Apple's more expensive MacBook laptops. But retail stores? What gives?Microsoft's Kevin Turner explained, "We're going to have some retail stores opened up right next door to Apple stores this fall . . . stay tuned." What will Microsoft retail stores offer besides PCs? Zune digital media players? Xbox gaming consoles? Microsoft's gadgets are little-known compared to the entire iPod and iPhone ecosystem Apple has created, but PCs won't be the only thing on display at Microsoft's new retail locations.
Microsoft is obviously entering the game of placing stores close to competitor's locations (Walgreens and CVS are infamous for doing this in my area), and the experiment will be interesting to watch as their stores locations open. If they are boring retail stores, customers won't care and will head back to Best Buy, Inc. (NYSE: BBY) for their Microsoft-powered products. Gateway (now just a brand of Taiwan's Acer) opened up nationwide retail locations five to six years ago, and they famously tanked because they were, well, boring. The PCs and the flat-panel displays were shown about as lovingly as burnt toast. Microsoft needs to avoid that model. In Apple's words, "Think Different."
Microsoft is obviously entering the game of placing stores close to competitor's locations (Walgreens and CVS are infamous for doing this in my area), and the experiment will be interesting to watch as their stores locations open. If they are boring retail stores, customers won't care and will head back to Best Buy, Inc. (NYSE: BBY) for their Microsoft-powered products. Gateway (now just a brand of Taiwan's Acer) opened up nationwide retail locations five to six years ago, and they famously tanked because they were, well, boring. The PCs and the flat-panel displays were shown about as lovingly as burnt toast. Microsoft needs to avoid that model. In Apple's words, "Think Different."
Will JPMorgan chief Jamie Dimon be our next Treasury Secretary?
Gold surges to another new high of $1167 per ounce
Cramer on BloggingStocks: Sanofi has lots of upside catalysts 
Reader Comments (Page 1 of 1)
7-22-2009 @ 11:05AM
RattyUK said...
Well based on Apple's figures yesterday this will do about as well as the first part of Microsoft's Laptop Hunter ads. I would say with 2.6 million Macs sold last quarter, the first with the "Laptop Hunter" ads going live, that all it appears to have done is instill in the minds of the buying public that Apple is the machine to purchase because of it's value rather than it's price.
Are we sure Kevin wasn't called by Apple Legal to forewarn him of this side effect?
7-22-2009 @ 12:34PM
Iridium said...
Gateway stores failed becuase you couldn't buy anything at the store and take it home that day. They didn't have any inventory, it was just a showroom. They also started opening concept stores in 1998 to coincide with the launch of Windows 98. Most Gateway stores were gone by 2003 with all gone by 2004.
They didn't fail because the stores were boring. Nobody wanted to drive to a store to buy a PC and have to wait a week for it to show up and pay shipping costs.
Gateway also sent people into Best Buy, Micro Center, and other computer retailers to steal employees by offering them $14 an hour positions at a Gateway store. Didn't work out so well for the people that did leave, they were all out of a job.
Microsoft's stores will fail in the same way. There were a lot of polls done that show that most people who buy a PC don't even know or care that Microsoft is a part of the computer they are buying. Most people buy a computer based on the brand, not the OS. Many of the new Mac converts wouldn't be able to tell you that the computer runs OSX10. They'll just say it is an Apple.
Ask a person what computer they bought and they will answer, Dell, Toshiba, Sony, Apple. Not, Oh I bought a Microsoft.
7-29-2009 @ 4:56AM
Jacky said...
i think Microsoft is giving a tough time to both of its competitors Apple as well as Sony sounds great but i think it should make it marketing strategy more strong to grip in the market but Microsoft knows this very well as far as i know about him...........