Microsoft looks to mimic Apple success, says Ballmer

Microsoft's CEO said Wednesday that his company hopes to steal a page from Apple's playbook and change how it works with hardware makers in an attempt to duplicate its rival's success.

In a Wednesday e-mail memo to employees that also outlined changes brought on by the departure of platforms and services chief Kevin Johnson, Ballmer cited several areas that Microsoft would focus on during the next year. Among his comments were some cryptic remarks about Apple.

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 "In the competition between PCs and Macs, we outsell Apple 30-to-1," Ballmer said in the e-mail, which was obtained by the Seattle Post-Intelligencer, as well as other news outlets. "But there is no doubt that Apple is thriving. Why? Because they are good at providing an experience that is narrow but complete, while our commitment to choice often comes with some compromises to the end-to-end experience."

Ballmer went on to promise that Microsoft would change how it deals with hardware vendors, such as Dell and Hewlett-Packard, the world's No. 1 and No. 2 computer sellers, respectively. "Today, we're changing the way we work with hardware vendors to ensure that we can provide complete experiences with absolutely no compromises. We'll do the same with phones -- providing choice as we work to create great end-to-end experiences."

Analysts struggled to interpret Ballmer's comments, with some unsure exactly what he meant and others willing to read between the lines.

"If he's serious, this would be a pretty fundamental change in how they work with hardware manufacturers," said Rob Helm, an analyst with Directions on Microsoft, a Kirkland, Wash. research firm.

Historically, Microsoft's role in deciding what goes into a PC, or how PCs are priced, has been minor. "Microsoft may have had a major role at times, the Tablet PC is one, but really it relies on forward-thinking partners like HP, who would take a change on Microsoft's designs on software," said Helm.

But the company clearly sees Apple as a threat, outnumbered sales notwithstanding. "Apple's making inroads in the U.S., especially in the consumer market and at the high end," Helms said as he speculated on what drove Ballmer to announce a major change in PC production. "Those are the same people that might pay for a premium version of Windows, so maybe that's one reason."