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drunkturkey
06-26-2003, 05:38 PM
http://slate.msn.com/id/2084727/

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Flipping the Switch
Linux's new popularity may hurt Apple more than Microsoft.
By Paul Boutin
Posted Monday, June 23, 2003, at 2:04 PM PT


In the latest of his legendary keynote stage shows, Steve Jobs kicked off Apple's Worldwide Developers Conference this morning in San Francisco by showing off the company's speedy new aluminum G5 desktop Mac. But while listing the new machine's impressive specs, Jobs left out a related, eye-popping statistic: Business Week columnist Alex Salkever dropped the bomb last week that next year, "Linux should pass Apple in market share for desktop operating systems on computers."

Say what? A few calls to industry analysts confirmed that they've come to the same conclusion as Salkever: Steve's new babies have been born into third place behind both Windows and Linux, which had been dubbed a desktop flop just two years ago.

The projected sales figures mark a turning point: The days when a new Mac on your desk was considered the stylish geek's protest against Microsoft's ubiquitous software (unless you could afford a $10,000 Sun workstation) have ended. There's a new way to Think Different in town. Linux was Finnish programmer Linus Torvalds' response to Sun's pricing, but many more techies saw it as the ultimate weapon for their all-out software jihad against Microsoft (which, of course, owns Slate). But like another holy war, the Linux-Microsoft fight has resulted mostly in collateral damage. Instead of wiping out Windows, Linux evangelists have driven one after another of Microsoft's competitors out of the operating system business. IBM, DEC, SCO, and finally Sun have lost the non-Windows portion of the server market to Linux, and no wonder: Linux is basically a better version of their Unix products, for free. The Penguinheads should have seen it coming. Compared to Microsoft's server wares, Linux is an alternative worth considering, but against a $3,000 Unix license, it's a no-brainer.

Now, with Linux's emergence as an acceptable alternative for the consumer desktop, Apple is standing in position to become its next friendly-fire casualty. By blending gorgeous design with user-friendly software, Apple lets you buy your way out of the Microsoft world—aided by a hand-holding deal with Microsoft to help the two brands work well together. (On that note, Apple released a Windows configuration tool for its AirPort Extreme wireless network base station last week, eliminating one step in Slate's recent "Wi-Fi for Dummies" article.) But it comes at a hefty premium: Apple's new desktop models start at $1,999.

Linux takes the low road, price-wise. It's not pretty, but it's free, plus it's lean and fast enough to run on a yellowed old PC from the storage room if you're willing to spend a few hours getting the software installed and running. Or, for $248, you can buy a brand new, ready-to-use Linux desktop computer from Wal-mart.com. The bargain-basement price is possible because Torvalds and other Linux programmers don't demand license fees. They either work on their software for free outside their day jobs, or they've convinced their employers to let them donate their work. As a brand, Linux is anti-corporate and anti-consumerist, but skip the neo-Marxist gift economy theories that have sprung up around Torvalds. He's more like the Crazy Eddie of software: His prices are insaaane! Linux is fast, cheap, and reliable, in defiance of the old engineer's adage that you can only have two out of three.

Sure, the new Mac operating system (code named Panther) is pretty slick—it's also based on Unix, and partially open-sourced. And Jobs has made it clear he doesn't compete on price, but on the more complex curve of price/performance, which includes factors such as ease of use, customer support, and interoperability with Microsoft—areas where Apple is way ahead of Linux. But with technology budgets frozen or slashed in most offices and homes, it's getting harder to compete with free—unless you're Microsoft. Every field in software seems to thin out to Microsoft and Someone Else. Usually, it's Microsoft and Second Place, but this year's game console wars illustrate the point, too: The entry of Microsoft's Xbox hasn't hurt first-place PlayStation 2. Instead, it bumped second-place Nintendo to third.

As the Unix wars proved, the software biz doesn't have time for No. 3. The software developers in town for Apple's conference today are mostly Mac-only coders, but their employers want to reach as broad an audience as possible, and as the saying in the industry goes, choose two. Apple still has software applications not available on Linux—such as Quark for publishing, or Photoshop for graphics—but if Salkever's analyst buddies step forth and pronounce Linux the No. 2 platform, software companies will re-evaluate their commitments. No doubt the graphic designers and multimedia artists who have remained loyal to Macs will continue to buy them, but to grow Apple needs more Switchers to abandon Windows—and not for Linux.

Is the new Mac the fastest personal computer ever? Maybe, but that was Sun's line, too. I'd love to do my work on a shiny new G5, but $248 is a lot closer to a free-lancer's purchasing power these days. Unless Jobs unveils a better, faster economy at his next keynote, my next desktop computer will come from Wal-Mart.

fcuknu
06-26-2003, 05:58 PM
I didnt read the whole thing, but i just cant see linux passing apple, i mean the average desktop user does NOT use linux, i mean is apple in that bad of a situation?

drunkturkey
06-26-2003, 06:26 PM
It comes down to cost and components.

Apple makes a good product, but nobody else can make/sell it, therefore the prices are high.

You can buy a cheapo box, say with a P3 1Ghz processor, and have a smoking machine running Linux for only a couple hundred bucks. And, more and more SW companies are porting products to Linux.

Also, many components that you can connect to a Windows PC (i.e. USB, FW, Drives, Cams, etc.), and being supported under Linux - and the number of components that connect to a PC is much higher than that of the Mac.

I personally have not used it, but I've seen some desktop implementations, and they are very nice, intuitive, and easy to get around.

Also, I don't really care either way at the moment. I've used Mac's in the past, but really have no reason to use one today. I own 2 PC's, 2 laptops, have a laptop from work. All are Windows based, and they work great for what I do with them.

However, in my company, we are more and more moving to Linux for a server OS, and even experimenting with some desktops running Linux. I doubt the desktop thing will go much further in the next couple years, but when major IT analysts make a statement like that in the article, it really carries some weight.

bluecell
06-27-2003, 12:02 AM
First of all, Slate are cheerleaders for M$. If you've read any of their articles, they hate Apple more than Linux.

The fact is, Apple's marketshare is always going to be lower in this PC-saturated environment. I'm glad that Apple isn't doing the same thing that M$ and Linux are doing. It makes me comfortable as a consumer.

carpetbagger
06-28-2003, 09:58 AM
I'm glad that Apple isn't doing the same thing that M$ and Linux are doing. What -- providing a fast, cheap, reliable OS? If Apple wasn't so greedy, they'd be #1 today. They may have a better product, but it's too expensive. They just don't understand it's better to have a smaller piece of a bigger pie.

bluecell
06-28-2003, 11:05 AM
Originally posted by carpetbagger
What -- providing a fast, cheap, reliable OS? If Apple wasn't so greedy, they'd be #1 today. They may have a better product, but it's too expensive. They just don't understand it's better to have a smaller piece of a bigger pie. Actually, OS X is fast and very reliable. Apple's become very competitive with its PC counterparts in the last year. I wouldn't call them greedy, they just looked at the landscape. HP, Dell, Gateway, they're all basically offering the same product. Some aren't as reliable as others, and there's the problem. There's a synergy between the hardware and software that most in the PC world seem to overlook.

One thing that Apple and Linux both have in common is that they both embrace open standards, something that M$ has never done.

carpetbagger
06-28-2003, 08:07 PM
Apple embraces open standards, but they refuse to license any clones of their machines. That's why they're so expensive and that's why they'll be #3 soon.

bluecell
06-28-2003, 10:51 PM
Originally posted by carpetbagger
Apple embraces open standards, but they refuse to license any clones of their machines. That's why they're so expensive and that's why they'll be #3 soon. You totally missed the point. Apple's offering a differentiated product, so basically it'll never become like HP, Dell, Gateway, and the rest. You think that it's good that the PC market is so saturated? It's terrible for consumers.

And no, Apple's not so expensive. Just compare their product lines to comparable Pentium 4 and Xeon machines. They have about 2.5% of the market right now, and that's gaining. Most of the analysts believe that they could get 5% or higher in the next year if they continue at this pace. Apple is adopting the "Ikea business model," which is doing wonders for their sales. All of their stores are turning a profit and not one has closed since the first store opened.