October 15, 2009

The entire personal computer industry is gearing up for Microsoft's (MSFT) Oct. 22 release of Windows 7, by most accounts the best version of its operating system in years. Yet Apple (AAPL), Microsoft's nearest competitor, is quietly planning to capitalize on the launch, too. "It presents a very good opportunity for us," says Philip W. Schiller, Apple's senior vice-president for marketing

The Cupertino (Calif.) company sees Windows 7 as its best chance in years to win over longtime PC users. Millions of PC owners are expected to head to stores over the next year to replace their aging machines. The surge is expected to be unusually large because Microsoft's last operating system, Vista, was so poorly reviewed that many people simply stuck with machines running the eight-year-old Windows XP system.

In the coming weeks, Apple is expected to hit those computer buyers with advertising aimed at luring them to its Macs. It will likely make the case that Macs are less susceptible to viruses and are best suited to its popular iPods and iPhones. And look for it to poke fun at Microsoft for making XP owners go through an arduous process to upgrade to Windows 7—one that includes backing up all their files to an external drive, reformatting their PC, and then reinstalling all of their old programs, assuming they still have the CDs. "Any user that reads all those steps is probably going to freak out. If you have to go through all that, why not just buy a Mac?" says Schiller.

No question, Microsoft and partners such as Hewlett-Packard (HP), Dell (DELL), and Acer will benefit from the Windows 7 debut. PC makers will be rolling out a raft of eye-catching new models—from $300 netbooks to sleek desktop computers with touch-sensitive screens. Microsoft downplays the hassles of upgrading to the new operating system and says most people are going to buy new PCs anyway, which means they won't install the software themselves. "For the vast majority of people that get Windows 7, most will move to new hardware," says Parri Munsell, Microsoft's director for consumer product management

Source:- http://www.businessweek.com