We have three Macs in the house. We have three iPods in the family. And we have six Wintel PCs.
I have an unbridled affection for the Macs. In the interests of fair disclosure, I was once an Apple Certified Software Developer early in my youth. I loved the machines then and I have the same joy in using them today.
The Wintel experience is pedestrian. And lately I have been less than impressed by Microsoft as a company.
I am being told of the errors of my ways. That Microsoft is highly innovative, in tune with the market, cash rich with a huge array of products in the pipeline. The XBOX definitely looks cool and I am looking forward to getting one for the, er, other kids in the family.
The true test of the performance of any company is the premium the market places on their business.
Apple’s stock moved 112% over the past year. The share price was $8.25 USD five years ago. The stock now trades a bit above $55.00 USD
Microsoft, on the other hand, moved by -11% over the past year. The share price was $30.26 USD five years ago. The stock now trades below $25.00 USD.
My chequing account has a better rate of return than Microsoft’s shareholder return.
As a shareholder, you decide which company is doing a better job and you increase the price of the stock accordingly. Microsoft continues to disappoint the market despite making money. I guess holding on to old monopolies for too long does not excite the market.
I view a Wintel PC in the same way that I view the city bus. Clunky, a bit crowded, a bit dingy and somewhat functional.
The Mac is more like driving a BMW. And the iPod… it is simply a cool device.