Businessweek has posted a list of what they call the top 50 most innovative companies in 2009, and guess who is sitting right at the top of the list. Sure enough, it's our favorite computer maker -- according to the survey, taken by "senior executives around the world," Apple is number one, and the reason listed by 47% of respondents is the products. Not that surprising, no? From the iPhone to the unibody MacBooks right up to the new Shuffles, Apple's products ooze new concepts and features and ideas.

Then again, Microsoft comes in at number four, and Wal-Mart is not far behind at number 10, and I don't know too many non-executives who would call those companies out for being "innovative," necessarily. But then again, both of them are being recognized for their "process," not their actual products. In terms of product, Apple is followed by Nintendo (no arguments there), Blackberry's RIM, and then Nokia.

So maybe Businessweek is just asking the wrong people. At any rate, congrats to Apple for topping the list (for the second year in a row), and we can't wait to see what's new in the next year.

BrandIndex is reporting this week that Microsoft's "Laptop Hunter" and similar ads are changing consumer's perceived value of Windows machines. YouGov conducted a survey of 5,000 consumers to measure the "value score" of both Macs and Windows machines. The value score represents a customer's perception of "bang for the buck." We don't know exactly how that's measured by the survey.

What they found was a steady increase in Microsoft's score since the price-conscious ads began. Simultaneously, Apple's score has fallen.

You can argue the validity of the commercials' claims, but what's undeniable is that people shop on price. When John Q. Public decides to buy a computer, 9 times out of 10 his initial thought is, "What's this going to cost me?" Most shoppers aren't like you and me, concerned with statistics and performance. They want cheap. As someone who has bought hundreds of computers for two schools over 8 years, I know what I'm talking about.

While the ads may infuriate Mac nerds like us, they might persuade everyone else.

[Via Electronista]

Microsoft's latest advertising campaign, while more stimulating than the Seinfeld/Gates spots, has one goal and one goal only: sell PCs. Microsoft's endgame, it seems, is to persuade people into purchasing Windows-running PCs by leveraging the fact that Macs are more expensive than PCs.

I'm not going to get into this argument because a) it's been done before, and b) the answer always comes out with just a little bias. In my opinion, the hardware comes out costing the same (with negligible differences) no matter how you run the numbers. What I would rather discuss is how Microsoft is making its attack and what it is actually doing to help Apple.

The paint wasn't even dry on the Laptop Hunter ads and Microsoft is after Apple again, this time with a 30 second TV spot [YouTube link] complaining about the costs of filling an iPod, and what an absolute bargain the Zune Pass is.

Claiming that it would cost $30,000US to fill a 120 gigabyte iPod with music, and only 15 dollars a month for a Zune pass, Microsoft wants to make a point that in these trying economic times, Microsoft products make the most sense.

Of course, a lot of the math here is fuzzy, and if you stop buying the Zune pass you lose all your music, except for the ten tracks you get to keep a month. It also doesn't address how many people, like myself, use their iPod. I have a large collection of music on CD going back to the 1980's. I want it to be portable, and to have in the car, so I rip the music in iTunes, and it costs me nothing additional to have about 500 CDs at my beck and call.

For a company as dominant as Microsoft is, they seem plenty worried about Apple. Of course, the Zune hasn't exactly been a world beating product, and who can forget the little New Year's Day present when a lot of Zunes simply expired?

I give Microsoft props for trying. It keeps the Apple fans riled up and on their toes, and certainly choice is a wonderful thing in consumer electronics.

Thanks to Maggy for tipping us to the new ad.

[H/T to Ars Technica]

Microsoft keeps trying, and trying, and trying. The new Laptop Hunter ad [YouTube link] features Sheila, who wants to do some video editing. She has $2000US to spend. Sounds like a natural for a MacBook Pro, eh? Nope. She settles for an HP HDX 16t.

She passes on the Mac because it has only 2 GB of RAM, while the HP has 4 GB of DDR2 (slower) RAM. She gets a screen that maxes out with a video resolution of 1366x768, while the MacBook Pro has 1440x900. Worse yet, she will get Windows Movie Maker instead of iMovie, and she can never run Final Cut Pro or Express, which she may want if she goes professional or semi-professional.

Of course, the Microsoft ads are pushing price, not features and quality, and there is some talk that Apple, seeing the recession take hold, is increasingly interested in some lower priced -- but hopefully not lower quality -- products to sell.

While there are certainly millions of buyers for whom a Windows PC would be a reasonable choice of computer, it's worth noting the long-standing mild irony that Crispin Porter & Bogusky, the ad agency that created this campaign for Microsoft, is (like the majority of advertising agencies) pretty heavily invested in Macs. Chances are, for this ad, the video editing that Sheila aspires to do was completed on a Mac. If you have an idle moment, check out this profile of the agency on the web and click on the office shots. I especially like the shot of Alex Bogusky's desk with two MacBook Pros sitting there. Different strokes for different folks.

There's an update in town, and it's all about locking it down: the 12.1.7 update to Microsoft Office 2008 (available within the suite via the software update tool, or downloadable from Microsoft) closes two security holes present in multiple versions of Microsoft Excel and first acknowledged by the company in February. These vulnerabilities could allow an attacker to create a specially-configured Excel file that, when opened, would allow full control of the target machine.

The update package also bundles up all the previous patches to Office 2008, which lends it heft (it weighs in at over 150 MB) but simplifies matters if you're a few revs behind. Note that there is no 12.1.6 update in the sequence; the previous patch level was 12.1.5.

If you haven't made the leap to Office 2008 yet (perhaps you're on a PPC Mac; perhaps you feel that you get better interoperability with Office 2003 users on Windows; perhaps you have to have Visual Basic support for macros), Microsoft is giving you the chance to consider moving up with a full-featured 30-day demo of Office 2008, now available for download in the USA. The package includes all the Office apps and can be upgraded to a paid license in the field without purchasing a boxed copy and reinstalling. Upgrades from previous editions of Office start at $240... of course, there are some less expensive alternatives out there.

[h/t Ars Technica]

If you joined us last Sunday night, you heard an unvarnished rant in five-part harmony as Dave, Christina, Mike S., Mel and I all weighed in on the ongoing series of "Laptop Hunters" Microsoft TV ads (yes, there's a third one now: an adorable mother-and-son team of laptop shoppers who shockingly still find time to slag the Mac as a kiddie machine while they browse the aisles) along with MacHeist and the other news of the week. You can download the show from Talkshoe or subscribe in iTunes.

Tomorrow night -- Easter Sunday, 10 pm ET -- we'll be joined by a special guest: Mitch Wagner of InformationWeek, also known (in Second Life, anyway) as the metallic talkshow host Copper Robot. Bring your questions for Mitch about Apple news, virtual communities, social media & the public sector... we'll be covering the entire waterfront.

To participate on TalkShoe, you can use the browser-only interface, or you can stick with the classic TalkShoe Pro Java client; however, for maximum fun, you should call in so we can hear your dulcet tones. For the web UI, just click the "TalkShoe Web" button on our profile page at 10 pm Sunday. To call in on regular phone or VOIP lines (take advantange of your free cellphone weekend minutes if you like): dial (724) 444-7444 and enter our talkcast ID, 45077 -- during the call, you can request to talk by keying in *-8. SIP or Gizmo users can connect directly to Talkshoe by following the instructions here. Talk with you then!

Recording support for the talkcast is provided by Call Recorder from ecamm networks.

Microsoft is really working hard to get potential Mac customers to either buy or stay with Windows-based PCs. After the initial "Lauren" ad -- see BusinessWeek's take on her choice of a poorly-rated HP model, and TechFlash & Apple 2.0 on her oddly extensive acting career for someone who supposedly answered a Craiglist ad for market research -- a new ad [YouTube link] in the series launched today.

Our new shopper, Giampaolo, looks at a Mac at a computer store and says it is "so sexy," but then adds that "Macs are more about aesthetics than they are about computing power." [Check Harry McCracken's detailed side-by-side of 17" laptop hardware comparisons to debunk the "Apple Tax" and performance arguments.]

He winds up with an HP laptop which is within the $1500 dollar budget Microsoft gave him. The model he chooses is a Pavilion HDX 16t. We hope he enjoys it!

It's a strange campaign. Microsoft is spending a lot of time and money promoting HP, while saying not much at all about the advantages of Windows Vista... which is, after all, the product Microsoft sells.

Is it effective? Is it giving you second thoughts about buying Apple products, based on cost considerations? (Is this a rhetorical question?)

We're not Microsoft Windows haters here at TUAW. In fact, Microsoft makes some very fine products for the Mac including some very useful ergonomic keyboards and some terrific mice. They also make a pretty decent suite of Office applications that many Mac owners use each and every day.

Heck, a guy even made a movie using Microsoft products, which we featured right here at TUAW. However, after seeing that the entire State of Texas has decided that Microsoft Windows Vista should not be used in any government agency, we might have to take a minute and reconsider our opinion on the giant from Redmond's flagship product.

According to Sen. Juan Hinojosa, vice chairman of the Finance Committee who proposed the ban, he did so because "of the many reports of problems with Vista." He goes on to say that:

"We are not in any way, shape or form trying to pick on Microsoft, but the problems with this particular [operating] system are known nationwide. And the XP operating system is working very well."

That's all well and good and for many of you Windows XP may, in fact, be working without problems. However, given the well-known issue with Vista, perhaps the Texas legislature is on to something? Who knows, given their current mindset, maybe they'd be interested in switching everyone in government to the Mac?

You hear that Apple, Texas needs you to give them a call.


(Thanks for the tip Melissa)

Well, the new ad blitz from Microsoft has begun. Advertising agency Crispin Porter + Boguksy is back at it with a new web video and click through banners that tell the story of Lauren, a Los Angeles woman (and member of the Screen Actors Guild) who was recruited from Craigslist. She supposedly didn't know she was in a Microsoft ad, but instead thought she was in a laptop marketing test.

She was given a thousand dollars after saying she wanted a 17-inch laptop with a good keyboard. She tried an Apple Store, but couldn't find anything at the price she wanted. She wound up with an HP Pavilion (here are the specs) running Windows Home Premium and a pretty slow AMD processor. She has minimal screen resolution and about 2 1/2 hours of battery life if she's lucky. All in all, not a bad machine, but certainly not a 17" Mac which would have been a lot more money.

Of course the laptops were not comparably equipped, so the cards were stacked in Microsoft's favor. That's what commercials do. Microsoft has been pummeled for more than 3 years by the extremely popular Mac vs. PC guys. Microsoft responded last summer with the Mojave ads, where people were tricked into believing they were seeing a brand new OS from MS, when in fact they were just seeing Vista. They were told about the features, and loved them. What they weren't allowed to do, however, was actually use Vista, or try to install it on their own PCs. Those were telling omissions.

Microsoft followed up with the Jerry Seinfeld-Bill Gates ads. They were fun to watch, but had no discernible message. Interestingly, Vista was never mentioned.

Now we come to the new ads, which doubtless will be followed by more shopping trips. In the first ad, Vista is never mentioned, just like in the Seinfeld commercials. Interesting. MS does not make computer hardware. Instead, their main product is an OS which is currently Vista. Yet in 2 out of 3 'expensive' ads, not a word about the flagship operating system.

Two of Apple's rival mobile platforms announced news this week at the 2009 Mobile World Congress, with Windows Mobile 6.5 on the way, and a new Android-based handset from HTC.

Windows Mobile has updated its user interface to more closely resemble the iPhone's. I can imagine the brainstorming session:

Developer 1: "It needs to look, work, and feel like the iPhone, but -- you know -- not be."

Developer 2: "Instead of putting the icons on a rectangular grid, let's do a (one two three four five six) hexagonal one!"

Developer 1: "Brilliant! Book it. Done."

I kid, I kid. I'm sure it was more complicated than that. Anyway, Windows Mobile will also feature two new services, a "My Phone" synchronization service, and a new marketplace that will sell mobile applications from both phones and desktops. It's like I've heard this song before, but can't remember exactly where.

Also at the conference, HTC announced the Magic, a handset to run Google's Android operating system. Unlike the G1, the Magic will not have a slide-out keyboard. It will first be available to Vodafone customers in the UK, Germany and Spain, among other European carriers. Cult of Mac's Ed Sutherland suspects T-Mobile will carry the handset in the U.S. because it can handle the phone's transmission protocols.

Both the Windows Mobile and Android platforms also announced they'll support Flash (along with Symbian and Palm's new webOS) in 2010. And what of the iPhone? No dice: Adobe lobs the ball back in Apple's court, saying during the announcement, "We would love to see it on the iPhone, too, but it's Apple's decision on when and how they support any new technology. So we will continue to work on it."

[Via Hardmac, MDN, and IGM.]

Microsoft is giving retail stores another try, even after closing its only store at the Metreon in 2001. It plans a "small number" of stores, but did not mention locations or size.

The company is hiring Walmart veteran David Porter -- an expert at negotiating deals between the movie industry and the big-box retailer's expansive DVD sales division. Porter most recently worked at Dreamworks Animation, managing worldwide product distribution for their games and movies.

The stores apparently will be geared for sales and education about Microsoft's product line. Porter said, "I am excited about helping consumers make more informed decisions about their PC and software purchases, and we'll share learnings [sic] from our stores with our existing retail and OEM partners that are critical to our success."

If Microsoft is aiming to compete with Apple on a retail level, they seem to be omitting a key part of Apple's retail success: Service. The Genius Bar is arguably the most crowded area in Apple retail stores, with every store booking appointments well in advance. A Microsoft service bar for both PCs and Zunes could be a very popular destination. If Microsoft stores can offer a competent service experience for the vast diversity of PC hardware, they might have something.

Microsoft has a 20,000 square-foot "Retail Experience Center" in Redmond, on the company's corporate campus. The Center is designed to show how Microsoft products can be used in every corner of a business' operations: from the loading dock to the reception desk. It's unclear if it will serve as the model for Microsoft's new retail initiative.

[Via ifoAppleStore.]

In 1983, Apple was trying to get software developers excited about the new Mac platform and a new way of working with computers. The YouTube video below shows highlights of an Apple event in which Steve Jobs plays the part of The Dating Game host Jim Lange, asking questions about software development to three bachelors software magnates -- Fred Gibbons of Software Publishing Company, Mitch Kapor of Lotus Development, and some guy named Bill Gates from Microsoft.

Of those three software giants, only Microsoft has really survived into the 21st Century. Software Publishing Company left the PC scene in 1994 and Lotus was assimilated into the corporate body of IBM.

The video has edited out most of the bits with Gibbons and Kapor, so you get to hear Bill Gates gush about how wonderful the Mac platform is and how Microsoft in 1983 honestly expected Macintosh software to account for one-half of their revenue.

It's a weird little video, and very indicative of the type of PR stunts that were popular in the early days of the digital revolution. Enjoy!

Tipped by a tweet from Dennis

Due to what we sincerely hope is a temporary technical glitch and not a policy decision, the Mactopia (microsoft.com/mac) site is inaccessible this morning; downloads pages are also offline, although the Office for Mac forums and blog are still coming up as expected and the Mac section of the main MS downloads area is available. Thanks to reader Matt for the tip, and thanks to commenters below reporting that the German version of the site is still up.

It's still the middle of the night at the MacBU offices, but if anyone can shed light on the problem we would appreciate it.

Update: The MacBU's Andy Ruff reports that he's looking into the issue.

Update II: It's back.

While Apple stock is up over seven percent since its positive earnings report and conference call yesterday afternoon, both Nokia and Microsoft have released dourer reports about their financial outlook.

Microsoft said that it will lay off up to 5,000 people, about five percent of its workforce, over the next year and a half, according to the Seattle P-I. 1,400 of those jobs would be eliminated today. The news comes as the company announced earnings per share two cents less than their quarterly guidance -- 47 cents versus 49 cents -- on revenues of $16.63 billion. Analysts had expected revenues upwards of $17 billion.

Nokia today posted a 69 percent drop in profits for its last quarter. Nokia stock earned 15 euro-cent per share in profit, compared with 47 euro-cent in the same quarter last year. Sales fell 19 percent to €12.66 billion, missing forecasts of €13 billion.

What can we take away from this? Perhaps this is understating things, but Apple appears to be doing very well against its competitors. In yesterday's conference call, the company announced that it had grown sales and revenue even in the face of challenging worldwide economic conditions. In both retail and iPod sales, much of the growth was outside the United States. Apple sold 88 percent more iPhones than they did the same time last year, although much of that may be attributed to pent-up demand for the iPhone 3G.

At midday, AAPL is $10 higher than its record-low close on Tuesday, trading at around $88 per share. Both NOK and MSFT are trading down about $1.65 each.

[Via Daring Fireball.]

Update: Sony, too: It's posting a record annual loss of $3 billion, and plans to close factories and lay off workers.