While Bill Gates looked on, Microsoft shareholders asked CEO Steve Ballmer about Apple at their annual meeting this morning. Steve's CEO-speak responses illustrate the larger problem.

Portfolio reports that one investor asked about the company's reputation with young customers:

"I'm just wondering why your marketing group can't do something to try to rein in this next generation, because you've got a real bad image out there."

He also said that Apple's ads make Microsoft look like "a buffoon." That's when the CEO-speak began.

"There's certainly always opportunities for improvement," Ballmer said. "[There is] ... a group of people with whom our market share is less."

When you hear "opportunity for improvement," you're screwed. Euphemistic language clouds meaning and hides the truth. Think "economic downturn" and "previously enjoyed" instead of "depression" and "used." Or "opportunity for improvement" instead of "problem."

Remember the Windows Mojave ads, in which producers tricked customers into thinking Vista was an unreleased version of Windows, only to then throw open the curtain and essentially say, "See? It's really Vista! You DO like it! There's nothing wrong here!"

Instead of telling people what they like, sanitizing language, insisting that the only reason the iPhone has 75,000 apps available is to make it usable on the Internet and denying your kids iPods, just say, "Our reputation with young people is poor and here's what we'll do about it." That's when you'll get something done.

[Via MacDailyNews]

This sounds an awful lot like sour grapes to me: Ray Ozzie, Microsoft's chief software engineer, told a Professional Developers' Conference earlier this week that it wasn't the apps that would make or break the smartphone platforms. Of course, that's what most press and blog outlets seem to be focusing on (maybe because we all already know what the hardware is like -- apps change every day if not every minute, and the hardware only changes occasionally), but Ozzie says customers won't buy a phone for the apps. The biggest apps, he says, will eventually be available on every platform. To put it in as few words as possible, you'll be able to tweet from everything in the future.

And he's got part of a good point there: it's true, the major functionality of "killer apps" will be available across platforms. But Ozzie forgets (or is just ignoring) that that's already the case on desktops. While yes, you could claim that porting to the various smartphones is easier than porting to the various PC platforms, that doesn't avoid the fact that I can tweet, IM, email, browse, edit photos and movies, and do whatever else I want on both platforms as well. And for some reason (ahem, the hardware and the way both software and hardware are designed), I'd rather do them on the Mac. People love their iPhones not just for the apps but for the way it fits in their hand, and how just plain slick it is.

That's not to say that the smartphone platform war is over -- no way, it's only beginning, and we consumers will take innovative ideas wherever we can get them. But Ozzie saying the apps don't count (and echoing his fellow Microsofters in trying to separate Apple from their software strategy) seems to mean that even he thinks he's already lost that race -- they certainly do play a large part in which platform consumers eventually choose.

The productivity suites for Mac from Microsoft, past and present, received a patch this week to resolve security issues and improve performance. While the 2004 version only got the security patches, the 2008 update, to version 12.2.3, boasts the following fixes to all apps in the suite:

• Security is improved. This update fixes vulnerabilities in Office 2008 that an attacker can use to overwrite the contents of your computer's memory with malicious code. For more information, see the security bulletin that is listed earlier in this document.
• Stability is improved. This update fixes an issue that causes Office 2008 applications to close unexpectedly when you open or use Office 2008 applications.
• Windows Office documents to which metafiles are attached now contain the correct text spacing when they are opened in Office 2008 for Mac. This update fixes text spacing issues that occur when you use Office 2008 for Mac to open a Windows Office document to which an OLE object or a metafile is attached.

There are also specific tweaks to the individual suite apps, and a passel of bug fixes for the (relatively) new Microsoft Document Connection for Mac utility. The 350MB updater requires Office 12.1.0 or later and Mac OS X 10.4.9.

While my experience is probably idiosyncratic, I did have a rather nasty sequence of events after updating my home machine to the new Office version: my Entourage database went belly-up and had to be rebuilt. Once the rebuild was done and Entourage was relaunched, more badness ensued; due to a yet-to-be-isolated issue, all of the mail, contacts and calendar entries in my connected Exchange 2003 account went poof and had to be restored from a backup. Not my best day ever.

I'm inclined to believe that this snafu was specific to my bloated database file and my Exchange config, and not something likely to hit most users... nevertheless, you might consider backing up your Office 2008 Identities folder (which contains your Entourage mail & PIM data) prior to the update.

We've been saying it for years, but everyone thought that we Mac-heads had a chip on our shoulder from the once-sour relationship with Microsoft. Finally, however, the truth has come to light; a group manager from Microsoft has gone on record and admitted the source of some of Windows 7's prettier bits and pieces.

Simon Aldous sat down with PCR for an interview and when he was asked to comment on the agility of Redmond's latest operating system, he had this to say:

"What we've tried to do with Windows 7 – whether it's traditional format or in a touch format – is create a Mac look and feel."

While I am glad that people at Microsoft are finally accepting the superiority of OS X, it still stung a little when Simon started to backtrack saying that Vista was more stable than OS X.

Update: It looks like the Windows team had a few things to say about Simon's earlier remarks, noting that "his comments were inaccurate and uninformed." It is, in my opinion, difficult to deny that the OS X Dock has had a positive impact on how people use their computers -- whether they be PCs or Macs. That being said, I'm glad Microsoft didn't take this one lying down.

[via Engadget]

Microsoft's Remote Desktop Connection Client is a free utility which allows you to connect to Windows computers running Windows from computers running Mac OS X (versions 10.4.9 or later).

For those of us who help manage Windows computers, it's a handy tool to have around, much like Screen Sharing (or Apple Remote Desktop) for connecting from one Mac to another. Fortunately I don't have to use it all that often, but last night when I tried it for the first time in a while, it crashed. I relaunched it, and it crashed again. Since I'm a slow learner, I tried it one last time. Yup, crashed a third time.

Assuming this wasn't some Halloween prank, I wondered if maybe I had an outdated version of the app, since I hadn't used it since Snow Leopard came out. I took a quick look around and found that version 2.0.1 had been released in mid-August. I downloaded the new version, ran the installer (I'm not sure why it needs an installer for what seems like a self-contained application, but it does) and the app launched as expected.

The release notes don't say much about what is new in this version, and I didn't notice any new features (other than not crashing on Snow Leopard, which is a significant plus). If you ever need to connect to computers running Windows, this 7.8MB download is a good addition to your toolbox.

Not all versions of Microsoft Windows support Remote Desktop Connections. For example, Windows XP "Professional" does, but the "Home" does not. Also, even for those versions of Windows which do support it, it is not enabled by default. If your version does not support it, you will need to find a VNC application which has a Windows 'server' and a Mac 'client'.

[If you prefer an open-source alternative to the Microsoft client, check out the versatile and free CoRD. --Ed.]

This morning, the New York Times had an interesting piece about the shift in cellphone momentum away from Microsoft to Android and the iPhone. The story refers to Windows Mobile as 'foundering,' which won't bring much happiness to Redmond. Of course, Microsoft already knows that they're quickly becoming a non-player in the smartphone market.

What's of interest beyond the basics is just how far the Windows based phones have slipped in terms of customer satisfaction. Quoting the story: "Indeed, a J. D. Power & Associates survey found that Windows Mobile had the lowest satisfaction rating among customers of any smartphone operating system. The iPhone has by far the most satisfying software, the study found. Android is a distant second, followed closely by BlackBerry's operating system."

"Windows Mobile scored below average on every attribute, said Kirk Parsons, director of the study, especially in ease of operation, speed and stability."

That was my experience -- I had two Motorola Q phones fail. They tended to lock up frequently, and one had to be replaced. I was on the Verizon network, which was very good, but when the iPhone came out the thought of having something designed to work well with a Mac, and something that had a certain well-thought-out elegance was just too much of a lure.

Microsoft owned the smartphone market for years, so it is a mystery to me why they fell so far behind. The entry of Android, and especially the new models, is welcome competition. Most cell phone makers are migrating to the Android platform, which doesn't require licensing fees. The iPhone design isn't for sale to anyone, and seems to be doing just fine. Apple could fall into the same somnambulant stupor that Microsoft seems to be in with smartphones, but the Android offerings should keep them scrambling. We'll all benefit from that competition.

What phone did you drop to get the iPhone? Do you think Apple will stay ahead? Leave a comment below.

The day is Thursday, October 22nd. You're in Scottsdale, Arizona, and you walk into a brand new store being opened by a multinational corporation that produces technology products, including popular operating systems for computers and mobile phones, music/media players, and 'cloud' email and storage services for consumers.

As you walk into the store, employees in brightly-colored t-shirts cheer and applaud. The store is spacious, with large wooden tables placed far enough apart that the opening-day crowd, standing on a hardwood floor, isn't packed into the place. At the back of the store is an "Answer Bar," where you can ask questions about the operating system on your computer.

No, Apple didn't open a new Apple Store in Scottsdale on the 22nd. Instead, this was the opening of the first Microsoft Store. As expected, the stores draw heavily on the highly successful Apple Store concept; the stores are opening near Apple Stores, the former real estate chief for Apple (George Blankenship) was hired to consult on location and placement of the stores, and Microsoft has even attempted to hire away Apple Store managers to run their retail outlets.

The personal shoppers are a blatant rip-off of Apple's Concierge concept, and Personal Training is an echo of Apple's One-to-One training. The Microsoft Store website has similarities to the pages for individual Apple Stores, down to a scrolling list of in-store classes and events (the list for the Scottsdale store is empty at this time).

It's fascinating to see that Microsoft has decided to copycat the Apple Store concept, but it remains to be seen if the execution will be as successful for Microsoft as it has been for Apple.

[via MacRumors]

Anil Dash has described how to run Windows 7 on a Mac running OS 10.6 -- as a virtual machine -- for free (after you buy Windows 7, of course). It's not very tricky and, according to Anil, works well. Start by installing Windows 7 in Boot Camp and wait while it grabs the necessary drivers (the duration of this process will vary).

Next, eject the Boot Camp disk and enter a few simple Terminal commands. You'll also need VirtualBox, which is free and open source virtualization software. Once you're done in Terminal, launch VirtualBox and browse to the file you made with Terminal. Read Anil's article for the details.

As today is Windows 7 launch day, we're interested in hearing from anyone who has installed it on their Mac, either via Boot Camp or virtualization.

For more, read Christina's post on installing Windows 7 on a Mac (at Download Squad), or Steve's take here. You can get your absolute fill of Win7 coverage all day today at DLS.

Our friends at Microsoft have produced a video [YouTube link] making fun of the iPhone app store. Well, it's not that funny. In the video, two supposed MS employees talk about all the apps they have rejected for the new Windows Marketplace, including a Sun Dial app, a virtual handshaking app, and a mustache app.

The point is that the Windows Mobile store won't be offering frivolous apps, just the serious stuff. Of course it's true that plenty of the iPhone apps on offer are games, but there's no shortage of serious apps for business, photography, astronomy, navigation, and so on.

It's all a little strange; MS has always dinged the Mac on the issue of software choice, because there were far more programs for Windows than Mac OS. Now that the tables have turned and Windows Mobile users have a bit of a drought compared to the Apple app store, I guess that old comparison will be ignored. By the way, there are fart apps for Windows Mobile.

Anyway, take a peek at the video, and see if you can follow the logic.

[via TechCrunch]

One week from today, Microsoft will try to shake the stink of Vista. BusinessWeek reminds the world that Microsoft is set to launch Windows 7 on October 22nd. I've got the day free, since all of my invitations to Windows 7 launch parties seem to have been lost in the mail.

As the spotlight shifts toward Redmond, WA, Apple Senior VP of Worldwide Product Marketing Phil Schiller says that Apple sees "a very good opportunity" in the Windows 7 noise, in an interview with Business Week's Peter Burrows.

While no one expects Windows 7 to be as poorly received as Vista, the new operating system will mark the first time in a long while that millions of PC owners will start looking seriously at replacing existing machines, especially with so many PC-people having skipped the purchase cycle when Vista came around.

And there's where Apple gets them. Or tries to, anyway.

Apple is likely to aim new ads at PC users, trying to pull them to the Mac side in the coming days. The ads will probably hit familiar points, such as the susceptibility to malware worn by Windows, and extra programs buyers get with a Mac out of the box, like iMovie and GarageBand.

As you probably recall, Microsoft dropped Visual Basic from Office for the Mac with Office 2008. At the time, I was working for a company that had a huge investment in systems that relied on Visual Basic, and that change was a real blow. In fact, we didn't upgrade past Office 2004 just to avoid trouble and plan our next step.

If anyone else is using Office 2004 for that reason, here's a thin shard of hope for you. This week, Microsoft's Office for Mac Team announced that mainstream support or Office '04, scheduled to end on October 13, 2009, will be extended through January 10, 2012.

Why extend support? As the blog post notes, Visual Basic support will return in the next major release of Office for the Mac, scheduled to hit the stands in 2010. This way, folks reliant on VB will be able to hold on until that new release is available. This is good news for anyone who was wondering how to migrate from a slew of mission-critical scripts.

You may not have heard about the recent loss of data for T-Mobile Sidekick users; after all, this is an Apple-focused site and there probably aren't as many Sidekick owners out there as there are iPhone users. I'll explain the situation, and how it could happen to anyone depending on cloud-based data stores for their mobile devices.

The Sidekick is made and supported by Danger, which since April of 2008 has been owned by Microsoft. As such, all of the personal information on the Sidekicks was stored on servers owned and operated by Microsoft. During the last week, Danger / Microsoft had hired Hitachi to do an upgrade to their Storage Area Network (SAN). That's usually not a problem, as the owner of the data (Microsoft in this case) performs a backup of all the data in case of an issue.

Well, something went wrong, and it appears that Danger / Microsoft did not have a backup in place. The result is a catastrophe for Sidekick users. T-Mobile sent out a statement last week explaining the situation, and placing the blame directly on Microsoft and Danger: "Regrettably, based on Microsoft/Danger's latest recovery assessment of their systems, we must now inform you that personal information stored on your device -- such as contacts, calendar entries, to-do lists or photos -- that is no longer on your Sidekick almost certainly has been lost as a result of a server failure at Microsoft/Danger."

According to the Wall Street Journal, Apple CEO Steve Jobs has been focusing almost all of his attention on the company's purported tablet-like device, which is said to be under his Jobsness's fine eye to detail. And if Gizmodo's details of Microsoft's Courier are the real deal, then it looks like Steve Jobs and Apple won't be alone at the touchscreen tablet ball. Courier will purportedly sport dual 7 inch-"ish" multitouch screens, with support for "writing, flicking and drawing with a stylus." In addition, Courier is said to include a camera on its back cover. According to Giz, J. Allard, Microsoft's "Chief Experience Officer," is heading the Courier project, which is said to be in late prototype stage.

Readers, tell us what you think. Apple allegiances aside, what do you think of Courier?

If you're an Apple retail employee, you might want to keep an eye out for coy glances across the Genius Bar or little notes emailed to your iPhone -- someone may be trying to offer you a job. Word comes via The Loop, citing anonymous sources, that Microsoft's ramp-up process to launching its new line of retail stores has resulted in the harvest & hiring of some Apple Store managers, who in turn are making offers to their hand-picked lists of colleagues with the promise of higher wages in Microsoft's mall outposts. Some managers have been offered relocation assistance to go along with their salary boosts.

You can't blame Microsoft for going after the best in the effort to build out a retail presence (and apparently this kind of bodysnatching goes on all the time in the retail sector), but one does wonder how well the Apple team members will make the transition over to working for Microsoft -- it's a bit more of an adjustment than going from Victoria's Secret to Lady Foot Locker.

It might not just be the lure of more money that draws the iCrew over to the new shops; some may be profoundly dissatisfied with their current working environment, according to an ifoAppleStore report noted by AppleInsider. Frustrations between employees and management at the Alderwood Mall store in Washington have led to the threat of a walkout scheduled for October 3rd, which would be the first such demonstration of labor power by Apple retail employees, according to the post.

If you're an Apple Store employee and you've been approached by Microsoft directly or by colleagues who are jumping ship, drop us a line at tuaw.com/tips and let us know what's going down.

Illustration via the Iconfactory, in belated honor of International Talk Like a Pirate Day.