Good point. However a BIG impediment to getting people to switch include:
1) Incompatible Hardware
2) Incompatible Software
3) Perception: "Nobody else" is using it.
It used to be that going to Mac meant tossing all your peripherals (from keyboard to printer). Those days are gone, but many don't realize it.
A bigger problem is software. If you've invested hundreds or thousands of dollars in MS software (not just OS, but productivity software), none of it will run under the Mac OS. It's hard enough to convince someone to switch their OS AND all their software, but Apple now makes them buy a new box as well. It has to be easier (read: less painful financially) to get people to switch to Mac if they can avoid having to get a new box too.
Finally, image is everything. Riding the wave of iPod's success could turn the tide on "no one uses a Mac" (which, btw, is sadly true: 3% is NOT an enormous installed base). However, no matter how "cool" it is to use a Mac or how much more productive people can be, the cost of replacing all the software is huge. The only major advantage Apple can leverage is the fact that there are no viruses, spyware or adware on the Mac. This could be worth the investment in new software (at least to some businesses)....
Just a minute. How many x86 boxes exist worldwide? If Apple could offer OS X to the x86 market and get just 10% of those for $100- that's a LOT of money. I'm thinking that instead of everyone upgrading to Vista in a year and half, they upgrade to OS X (or will it be XI?). In any case, going from 3% to, say, 50% of installed OSes would have to be good for Apple. I think the numbers would show that whatever hit they'd take in future lost h/w sales they could easily make up in OS sales. And there's no way they could produce enough boxes to reach that market share even if everyone did want to buy a Mac.
I actually suspect that the real reason Apple doesn't go head-to-head with MS is because
a) Previous agreements between the 2 companies limit what Apple can do
b) Apple doesn't yet have an Excel replacement and can't afford a full-fledged war with MS where MS might pull all its Mac software in retaliation.
When Numbers is released, Apple will have a Word, Excel and PowerPoint replacement and could then think about "going it alone" (of course they still need to tackle "Enterprise" computing, but that could come soon enough too).
Just my $0.02 worth...
You need a better Editor to proof read your text:
"When Steve was originally cutting deals with the record labels, neither new how successful iTMS would be."
should be "... neither KNEW how..."
and:
"If Australia is any guide, at least one music label think so."
should be "..thinkS so."
Other than that, it was a good article.
What Uncle Ben Taught Me About Mac Hardware
What Uncle Ben Taught Me About Mac Hardware
Absence of Aussie iTMS a warning?