Windows 7 And The Bad Economy Will Kill Apple Sales

Microsoft CEO Steve Ballmer believes the bubble is about to burst on Apple in a big way as the global economy continues to suffer a synchronized meltdown.

Apple has racked up some impressive sales numbers in recent years on the back of the success of its iPod and iPhone products in the consumer space. However, with confidence shattered, job losses mounting, tightening credit markets, and fear engulfing the purchasing decisions of consumers and corporations alike - luxury purchases are increasingly looking a thing of the past.

“Apple gained about one point, but now I think the tide has really turned back the other direction,” Ballmer  said in a Webcast earlier this week. “The economy is helpful. Paying an extra $500 for a computer in this environment — same piece of hardware — paying $500 more to get a logo on it? I think that’s a more challenging proposition for the average person than it used to be.”

And the numbers are already starting to bare out these brutal facts. The NPD Group this week reported that Mac sales fell a staggering 16.7% in February compared against the same month a year earlier.

“They had a pretty crummy month,” said NPD analyst Stephen Baker. “Some have noted that they had some tough year-to-year comparisons, but this is a little more concerning than just comparisons.”

Apple has reacted to dwindling sales numbers by refreshing its iMac, Mac Mini and Mac Pro product lines. But despite the fact we’re in a seriously bad economy, most of the prices were actually increased - not reduced - hardly a way to stay competitive when your customer base is feeling the pinch.

And there’s still no sign of Apple introducing its own aggressively-priced Netbook to compete with the hottest selling product on the Windows side of the aisle. Apparently a Netbook would cheapen the Apple brand.

Windows 7: The Game Changer

And it’s not as if Apple will be able to rely on Windows Vista bashing to drum up sales much longer either. Microsoft has swifty acted on the negativity that surrounded its Vista OS, and is making final preparations to start selling a leaner, meaner, more beautiful version of Windows to customers this year.

Named Windows 7, it is easily shaping up to be the most exciting release of the Windows operating system since the fan-fare of Windows ‘95 all those years ago. Even hardcore Apple fans admit Windows 7 is a huge improvement over the bloated mess that became Vista.

What does this mean for Apple? It’s another compelling reason to avoid paying the Apple tax the next time you buy a new desktop computer or laptop. No more witty Vista bashing ads from Apple. Windows 7 is cool, and it runs beautifully on the more modestly spec’d netbook computers too.

Apples Gone Bad

Apple products will continue to sell. Those with significant savings will continue to splash the cash when Apple releases the next update to its Macbook Pro line of products. And I’m sure the iPhone and iPod will continue to be popular with those people who still have a job.

But Apple enthusiasts expecting the company to continue its slow rise in marketshare should start preparing themselves for disappointment. The upward trend is over for MacOS. The only question is how far will Apple fall back into obscurity in these troubling times ahead.