Steve Jobs made some interesting observations at an industry interview last night.

On his return to Apple in the 1990s:

“Apple was about 90 days from going bankrupt. It was much worse than I thought back then. I expected all the good people had left, but I found many of them still there, and I asked them, “Why are you still here?” They said it was because they believed in Apple.”

On the platform wars between Microsoft, Google and Apple:

“I don’t see it. We never saw ourselves in a platform war with Microsoft, and maybe that’s why we lost. We think about the competition, but we’re focused on building a better product.”

On passing Microsoft’s market capitalization:

“It doesn’t matter very much. It’s not what’s important. It’s not what makes you come to work in the morning. It is a little surreal.”

On Google:

“They decided to compete with us. We didn’t go into the search business! We want to create better products than them. If people like our products, we get to come to work for tomorrow. Just because we’re competing doesn’t mean we have to be rude.”

On journalists and, er, bloggers:

“The foundation of a free society is free press, and some of the newspapers are in real trouble. I don’t want to see us descend into a nation of bloggers. I’m all for anything that can help newspapers with new ways of expressing themselves and getting paid. We need editorial oversight now more than ever.”

On the future of PCs. They become farm trucks:

“When we were an agrarian nation, all cars were trucks because that’s what you needed on the farms. But cars eventually became more prevalent is people moved to cities. PCs will be like trucks…they are still going to be around, but there is a transformation coming, and it will make some people uneasy. Is it the iPad? Who knows? Will it be next year or five years from now?”

On his work:

“I have one of the best jobs in the world. I get to come in and work with some of the most brilliant people in the world. We play in the best sandbox. We’re structured like a start-up. We’re the biggest start-up on the planet. And we all meet once a week to discuss our business…and there’s tremendous teamwork at the top and that filters down to the other employees.”

On his Stanford address:

“Probably I would just turn up the volume on it. The last few years have reminded me that life is fragile.”

Apple achieved a significant milestone today. They became the most valuable U.S. technology company with a market cap of $228.56 billion. They are now the second-largest U.S. company by market capitalization.

Apple’s market cap was $88.68 billion on Oct. 2, 2008 and Microsoft’s was $228.35 billion on Sept. 29, 2008. Microsoft’s market cap is virtually unchanged. Different story for Apple.

The Windows era is over.

The following clip is an excerpt from The Pirates of Silicon Valley. It highlights how Microsoft conducted business back in the good old days.

[youtube]http://www.youtube.com/watch?v=im589uTchKs[/youtube]


A lot has changed since then.

First, Microsoft is a dead stick company. Unable to effectively innovate or grow the business, it clings to its old monopoly model of imposing a tax on PCs. A tax that is called Windows and, more often than not, Office. In terms of the next wave of computing, Microsoft is simply not a material factor. Microsoft does not lead or drive the market. Other competitors have moved in.

What is interesting is that the same techniques Microsoft used in the 1980s to dominate the PC industry is now being used by Google to dominate the 2010s. Google is playing hardball with its competitors and Google is winning.

When Schmidt joined the board of Apple in 2006, he made the following statement:

“Apple is one of the companies in the world that I most admire,” said Eric Schmidt. “I’m really looking forward to working with Steve and Apple’s board to help with all of the amazing things Apple is doing.”

Or was there a different motive?

Android? Chrome? Google TV?

Google’s VP of Engineering, Vic Gundotra made a particularly arrogant statement about why Google created Android:

If we did not act, we faced a draconian future. Where one man, one company, one carrier was the future.

Uh, huh. Conveniently forgetting to mention that Google had acquired Android in 2005. Before the iPhone. Before the Apps store. And conveniently forgetting to mention that Eric Schmidt was following the teachings of Sun Tzu’s Art of War:

If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle.

Lots of negative perspectives, like this one, concerning the iPad. You also get this type of noise from Gizmodo. Makes you wonder why anyone would even bother making a tablet. Clearly, there is no market.

Looks like it is time for me to upgrade my Windows machine. Easy enough. Just follow the table below. 64 something or 32 something and “Custom Install” or “In-Place Upgrade”.

Custom Install is another way of saying a complete rebuild and reloading of all apps and data. Lots of Custom Install options. And my environment will fall under that option. Oh what fun.

The table for upgrading my Mac to Snow Leopard is a bit different. But then, that is the joy of owning a Mac.

This was advertised in the Best Buy flyer today. Reminds me of another design. Not executed as well but I suppose it is better than a gray box. Hmm… I wonder what she is working on in the kitchen?

According to Roger Kay there is quite the sum of money involved in owning a piece of Apple gear. The report titled “What Price Cool?” can be downloaded here. Oh. And since Microsoft “sponsored” the study, I can save you some time reading the report. The fair and objective result paid for by Microsoft is that Apple products cost more money!

The report is filled with brilliant insights like this one warning individuals and companies not to consider migrating to Apple:

With Macs, you’re out top dollar, but can’t get a package with all this cutting edge stuff now, nor can you add it later, which means you’ll always be behind. How cool is that? Mac users may be paying more for image than substance and investing heavily in coolness that’s cooling off.

Uh huh.

I agree with Macalope:

Microsoft has boxed itself into a corner of expensive, nonsensical and uncompelling upgrade paths and is behaving like a spoiled child because its customers have started realizing they don’t have to use Windows. They know it and Roger Kay knows it. If they spent half the time they spend filling out fake tax forms and paying actresses to buy their products actually making a good user experience, they might be able to speak about value with an iota of credibility. But probably not.

A reasoned analysis would show that there is a premium to a Mac over a cheap PC from Best Buy although nowhere near the amounts proposed in Kay’s study. As with most things in life, quality products can command a premium.

Just for the record, I am posting this from the most dominant operating system in use today. You know. Windows XP. The really cutting edge stuff that Microsoft delivered almost ten years ago. With a PC, I know that I will never be behind because it takes so long for Windows to catch up.

The following media advisory was posted on the Apple site:

Team,

I am sure all of you saw my letter last week sharing something very personal with the Apple community. Unfortunately, the curiosity over my personal health continues to be a distraction not only for me and my family, but everyone else at Apple as well. In addition, during the past week I have learned that my health-related issues are more complex than I originally thought.

In order to take myself out of the limelight and focus on my health, and to allow everyone at Apple to focus on delivering extraordinary products, I have decided to take a medical leave of absence until the end of June.

I have asked Tim Cook to be responsible for Apple’s day to day operations, and I know he and the rest of the executive management team will do a great job. As CEO, I plan to remain involved in major strategic decisions while I am out. Our board of directors fully supports this plan.

I look forward to seeing all of you this summer.

Steve