The best way to begin this commentary is to refer to a recent report that Microsoft may be spending up to $1.15 billion to fix defective Xbox 360s. Now this particular tale of woe came and went with nary a question from the so-called tech-savvy pundits.
When you look at the story just a little more carefully, though, you’ll find that this is one huge issue, and if Apple’s name was in the story rather than Microsoft, it would spark front-page stories about a beleaguered company really fast.
Consider what this actually means. If you take Microsoft at face value, that it has shipped close to 11.6 million units since the Xbox 360 was first released, they’re talking of taking a nearly $100 charge against each and every one. Since the prices of the 360 range from $299 to $479, this amounts to one huge write-down. This is a story that ought to be making headlines, and yet it seems to be relegated largely to a middle- or back-page presentation.
Now think, for a moment, if Apple had allocated up to $100 for repairs on every iPod it had sold since the product was first introduced. But wait! It doesn’t have to be an iPod. What about AirPort base stations, or iBooks? The list goes on and on, and you can bet that any story covering any of these models would garner major coverage all over the world!
Story continued in this week’s Tech Night Owl Newsletter.
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