For a measly $150m, Apple has sold out to a consortium of industry heavyweights, each with his own agenda, and his own reason for buying into the deal.
David,
As usual, I find myself agreeing with you. For less than mere pocket change, MSFT has helped insure that Apple will continue down the same self destructive path it has been on for years. To boot, MSFT gets lots of good publicity.
Apple needs to decide what business it is in -- is it hardware, is it software, applications, operating systems -- or laser printers? It is really difficult to be focused when you're all over the map. Microsoft has used what has traditionally been reserved as a Mafia tactic (also used by my mother-in-law) to assure compliance with its demands. Although it probably isn't obvious, there ARE strings attached to the $150MM; and those strings will sacrifice Apple's independence to choose its own destiny.
While I'm pleased to have made a few bucks on the stock overnight, I must say that when I bought it, I expected something more. I expected a return to innovation, not a jumping on the MSFT bandwagon.
The real winner here is MSFT. Apple didn't need the money. MSFT collects $1 Billion a year off sales of Apple products -- not much to MSFT, but more than $150 million. Will MSFT continue developing for Apple? No way. It's just the existing product line had not reached the end of its marketing life; Gates figures he can get way more than $150 Million out of rehashing the same old products & selling it to Apple users. But he's not about to let Apple innovate.
As a by-product, the idiots at DOJ will see this as a pro-competition move and applaud Gates' actions, taking the heat off MSFT for squeezing software developers in all other arenas. Unfortunately, DOJ won't understand (and certainly can't prove) that this was a move calculated to do just the opposite -- bring Apple to its knees.
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