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Daring Fireball: Surface: Between a Rock and a Hardware Place

Stashed in: Mobile!, Apple, Microsoft

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There we have it: four short paragraphs that explain why Microsoft has turned its guns against PC-making OEMs. This move was driven by the iPad, but competitively it directly pits Microsoft not against Apple but against Dell, HP, Toshiba, et al. The intention is obviously to slow the iPad down, but the radical shift in Microsoft’s strategy is about the fight over the profits that remain after Apple’s. The math no longer works out for the Windows you-sell-the-hardware-we-sell-the-software model. It works for unit share (cf. Android), but it doesn’t for profit share. Nothing works sustainably in business without profit — profit is the oxygen companies breathe.

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