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Microsoft has really

Microsoft has really stumbled with Vista. For example, I tried to connect to a VPN on a Microsoft server and failed. I got an error message asking me to check if the computer was on! However, the enterprise and government markets are locked down. Microsoft will ride it out with XP.

Apple will get more market share, but there are limits. The US military alone has as many Microsoft-powered computers as a medium-sized country, and they switch versions, let alone platforms, very, very slowly.

The real issue here is not market share, because Microsoft and Apple don't directly compete. Microsoft does not manufacture computers or own a chain of stores. Apple doesn't make software for other manufacturer's hardware. Dell and Apple don't directly compete. Dell does not write software for its hardware and has to support software they didn't write.

The real issue is profitability. Apple is in a high mark-up hardware business, they write and thus understand their software, they have a chain of stores that keep all the money in the company and is in complete control of its customer service. Microsoft is in a low mark-up business, dependent on computer manufacturers for most of their sales and on partners and OEMs for customer support. Dell is always playing catch-up. They have to build machines and support customers on an operating system they didn't write. Neither Microsoft nor Dell can completely control their user's experience.

Apple's profits will go through the roof while Microsoft and Dell will just muddle along.

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