And so Microsoft’s official stance regarding Apple’s growing domination of the $1,000+ market is that Apple is charging hundreds of extra dollars in pure margin – $500 in the case Turner cited in his prepared remarks. The computers that Microsoft chooses to brag about on stage at a major conference are the $650 17-inch laptops advertised in Best Buy Sunday circulars.
There’s no question that retailers sell tens of millions of cheap Windows laptops every year. But no one with a pair of eyes thinks such machines are of comparable quality to Apple MacBooks. Even without turning the machines on, anyone can see the difference in design and build quality. In fact, you don’t even need eyes – just pick them up and see which one squeaks. Apple is selling more MacBooks every quarter. Microsoft thinks it is sitting pretty because Best Buy has a 17-inch Dell for $650.