Imagine a product that many people do not think works well but sells millions of copies. Well, that's Microsoft (NASDAQ: MSFT)'s operating system, Windows Vista.

According to the FT, both business and personal computer users have tried to stick with older versions of the Microsoft OS, Windows XP, but adoption is still good enough to drive outstanding earnings for the world's largest software company. As the newspaper says: "None of this, however, has had any discernible impact on Microsoft's financial fortunes. Many companies buy their software from Microsoft under an arrangement called Software Assurance, which lets them upgrade to new software whenever they like in return for a fixed annual payment."

Perhaps that is what having a monopoly is all about. Even if products are not perfect, they are adopted. Even if companies normally would not make an investment, they are on an "automatic upgrade" program.

It might be nice to think that Linux or Apple's (NASDAQ: AAPL) new OS, Leopard, would get wider adoption, but based on most figures, the Mac has no more than 5% of the global PC market and no open-source desktop program has significant market penetration.

It's good to be king.

Douglas A. McIntyre is an editor at 247wallst.com.

Beginning Monday June11, thousands of very technically talented people will descend into San Francisco for the Apple Worldwide Developers Conference 2007. The conference runs through Friday June 15. There are over 100 separate and distinct technical presentations and mini-lab sessions on the schedule. Apple Inc. (NASDAQ: AAPL) will use the opportunity to make sure everyone in attendance gets a beta-copy of the new Leopard operating system, due out in October, and of course the buzz will be the new iPhone.

Apple has been strategically advertising the iPhone on television and other media with the final message "due out June 29." The early adopters will sing its praises and the various media representatives will be there to capture every word. But what else does Apple have up its sleeve?

I wrote on May 31 that Apple and Google Inc. (NASDAQ: GOOG) have emerged as the two distinguished leaders in the technology sector. Both have hit new 52-week highs and the momentum in their respective earnings and revenues is compelling. They have taken over from the old guard.

Rumors have been circulating that Apple and Google will formalize a strategic relationship. Basically, Apple has grown weary of its dependence on Microsoft's (NASDAQ: MSFT) Office Suite, and Apple CEO Steven Jobs has indicated that Mac needs to "catch up." If Apple decides to include the Google suite of internet applications, it could be a blockbuster union of these two titans and a serious blow to Microsoft. Google's suite would include e-mail, spreadsheets, maps, and general document management.

Shares of Apple, Inc. (NASDAQ: AAPL) were down as much as $2 during normal and after-hours trading yesterday after the company announced the delay of Leopard, its new Mac operating system. The company explained that Leopard will now be out in October, in time to capture the all-important Christmas sales for the Mac.

The reason given for the delay is Apple's focus on delivering the iPhone in time for a June release. The company took several software engineers off the Leopard project to help finish the software necessary for the iPhone. The iPhone will be the most sophisticated hand-held device on the market and therefore, software intensive. Apple basically made the choice of which product, Mac OS or iPhone, is more important for a "timely release". Obviously, iPhone is the winner.

The financial implications for Apple on the Leopard delay are negligible. According to Goldman Sachs analyst David C. Bailey, the sales of Leopard being delayed could cost Apple about $75-100 million in the September 30th quarter. Those revenues should be recaptured in the December 31st quarter as long as Apple ships Leopard in early October. Overall revenue expectations for the quarter ending September 30th are about $6 billion, so the delay should not affect the earnings for that quarter.

The gossip on the Street will be at a minimum as Microsoft Corp. (NASDAQ: MSFT) had a delay "in the years" for Vista as opposed to Apple's "delay in months" for the Leopard. Nonetheless, some will attempt to make this appear as bad news.

Apple shares did begin to bounce back in late trading as the revenue impact is quite minimal.

Georges Yared is the CIO of Yared Investment Research