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July 16, 2009 12:00 AM

Microsoft Talks Retail Stores, Getting on Apple's Nerves

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Microsoft COO Kevin Turner provided a few details this week about his company's still mysterious plans to open retail stores. He said the software giant planned to open some retail stores "right next to Apple Stores" beginning in the fall.

Turner also relayed a funny story about Apple. The Cupertino Mac maker recently called Microsoft and demanded that the software giant stop running its "Laptop Hunter" ads on TV. The ads highlight how expensive Macs are compared to PCs, and how much more choice there is in the PC market. That's a lot of chutzpah, even for Apple: Its annoying "I'm a Mac" ads have been running for years and often include inaccurate information about Windows and PCs.

Turner said at Microsoft's Worldwide Partner Conference this week that his plan for the retail stores was to "transform the PC and Microsoft buying experience." While it's unclear if the best way to do that is to copy Apple's own retail plan so closely that even the locations are similar, Turner says that he expects Microsoft will learn a lot from this experience and then share it with other retailers that sell Microsoft products.

"We're in the game for the long term here," he said. "And I know something about retail, and we've hired an incredible team to do an incredible job on retail."

Regarding Apple's demands about the "Laptop Hunter" ads, Turner revealed how desperate Apple is to prevent people from realizing how much more expensive Macs are than PCs. "Two weeks ago we got a call from the Apple legal department saying, 'Hey, you need to stop running those ads, we lowered our prices,'" he said. "They took like $100 off or something. It was the greatest single phone call in the history that I've ever taken in business."

Finally, Microsoft had gotten to Apple. "I did cartwheels down the hallway," Turner continued. "At first I said, 'Is this a joke? Who are you?' We're just going to keep running them and running them and running them."

Turner noted that the ads work because they're the truth. He talked about reading an ad for an electronics retailer in the newspaper this past Sunday and examining the prices for different computers. "You can get a 13.3” Macbook for $1,199 from that retailer," he said. "Guess what? [From] that same retailer, you can get a PC with more RAM, a bigger hard drive, and almost a three-inch bigger screen for $649. This is...the Apple Tax.

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Comments
  • Preston
    3 years ago
    Jul 18, 2009

    Apple was right to tell them to stop lying about Mac prices. The Microsoft ad claimed the Mac was $300 more than it is priced at Apple's store. His goofy claim about "doing cartwheels" sounds corny. Microsoft comes off as embarrassing when it tries to be all tough and aggressive like this.

  • Sam
    3 years ago
    Jul 18, 2009

    He was doing "cartwheels down the hallway"? It seems that juvenile behavior and thinking pervade Microsoft. And now they're going to open Microsoft stores right next to Apple stores? Yeah, that will show them.

    Microsoft had a Microsoft store in the large Metreon building in downtown San Francisco. I passed through it occasionally while on my way to the theater upstairs. There wasn't much to look at or play with in the store. Some copies of Microsoft Office were displayed. I seem to recall some boxes the Microsoft mouse for sale. Hmmm. Can't remember much else - didn't make much of an impression on me, I guess. Meantime, the Sony store on the 1st floor was also bustling with people looking over their Playstations and playing demo games on them.

    Anyway, the Microsoft store closed down back in 2001 and it has not been missed. I have no idea why Microsoft thinks it will have better luck this time. And if they really do think that it's worth another effort, wouldn't it make sense to open just one or two stores as a test? Or is the juvenile urge to mimic Apple again just to strong to resist?

  • Charles
    3 years ago
    Jul 17, 2009

    What PC World thinks of the Microsoft stores,

    http://www.pcworld.com/businesscenter/article/168603/microsoft_vs_apple_running_stupid_not_scared.html

    "Meanwhile, Microsoft says it is going to open retail stores right next to Apple stores? What bozo dreamed up that one? It's like a Piggly Wiggly opening up next to Whole Foods, then demanding of customers, "Which one of us is more cool?" and being dismayed by the result."

    The article makes many sensible points about Apple and Microsoft and suggests some reasonable things that Microsoft should do. This is called "journalism", and you won't find much of it in anything Paul writes about Apple.

  • Steve
    3 years ago
    Jul 17, 2009

    Hey chuckb84, imitation is the purest form of flattery--get over it. As well, I _would_ prefer an iPhone over a Windows Mobile phone. My Motorola Q sucked. Currently, though, the BlackBerry is my favourite. As for Windows vs Apple, while the hardware from Apple is fantastic and looks awesome, I'm not a fan of their OS whatsoever. Vista has been rock-solid for me and I've been running Windows 7 RC for about a month now and it too, has been rock solid. Love my iPod Touch and the app/music store though.

    It's just my opinion, but those who put all of their "love" behind just one company are seriously missing out. Seriously.

  • Christopher
    3 years ago
    Jul 17, 2009

    man that just funny!

    I don't think Apple is that dumb they call and say please stop and if some one there did that person will not have a job now.

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