SOFTWARE NOTEBOOK Microsoft considers Apple to be a serious competitor

But it leaves the PCs themselves to computer-makers. Apple makes not only the Mac OS X operating system and software applications, but also its own computers.

Microsoft’s approach generally results in a wider variety of hardware, but it also complicates matters for the company. More than a few of the glitches that followed Vista’s January 2007 retail release were caused by compatibility problems with computers and devices. Although any new operating system can experience problems, the challenge was greater with Windows Vista because of a series of technical changes Microsoft made in an effort to improve security.

In his e-mail to employees last week, Ballmer wrote that Microsoft will try new ways to overcome those kinds of challenges, not only with PCs but also with phones, where Microsoft similarly offers an operating system but not a device.

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