Predicted Windows threat to Macintosh evaporates.

Predicted Windows threat to Macintosh evaporates

As Microsoft Corp. and Apple Computer Inc. continue to battle for market position with the introduction of new products, some analysts and legal experts say the competition likely will be put to rest soon because of an impending court decision.

Even if the decision doesn't squelch Apple's fury over look-alike Windows software sold by Microsoft, Los Angeles-area retailers said they've seen few defections by users of one system to the other. Actually, they said, the new products are opening up the market for both companies.

"They're different markets. Windows is aimed at people who already use DOS systems. Windows is not quite a Macintosh," said Frank Catlano, products spokesman for Egghead Discount Software. "Really, a person's choice is going to be based on what they're most comfortable with."

Last May, Microsoft introduced Windows 3.0 version software that gives IBM-compatible computers the user-friendly features of a Mac. A few weeks ago, Apple countered by introducing a new computer line that cuts Macintosh prices in half.

Meanwhile, a copyright infringement lawsuit filed by Apple against Microsoft is nearing conclusion in court after almost three years.

The case, filed in March, 1988 and taken under advisement in August, 1990 by a U.S. District Court judge in San Francisco, claimed that Windows software too closely resembles the look of screen graphics on Macintosh.

Attorney Scott Baker of the Oakland law firm Crosby, Heafey, Roach and May, who specializes in software cases, said recent court decisions have protected copyrights of software that closely resembles later "clones." This indicated, he said, the final decision probably will favor Apple, although earlier rulings on motions have supported Microsoft's position.

If Apple wins, it could either prohibit production of later Windows versions, holding a monopoly on the market, or license Microsoft, taking a cut of the profits, Baker said.

Brisk sales of Microsoft Windows 3.0 software are continuing, local retailers said, but they are not making any significant dent in Apple Macintosh sales. Likewise, software retailers said they doubt the introduction of the new, cheaper Macintosh line will curb sales of Windows 3.0.

"Based on what I've heard in the market, the new Mac is not cutting into Windows," said Dave Dunlap, purchasing agent for Technology Express of Long Beach. "Windows is very strong."

Windows 3.0 has been called the most significant development in the nine-year history of IBM-compatible personal computers. Last month, Microsoft announced first-quarter earnings had risen 77 percent to $87.6 million, on record revenue of $369.4 million. The earnings were largely attributed to sales of Windows 3.0.

Catlano at Egghead said the introduction of Windows expanded the software market.

"It's not a finite pie. It's a pie that's expanding," said Catlano. "I don't think either company is looking to steal sales from the other."

Analyst Timothy McCollum at Dean Witter Reynolds predicted that the phenomenal Microsoft growth from the introduction of Windows 3.0 will slow down, but will continue, unfazed by Apple's October introduction of the lower-priced Macintosh.

"It's a cheaper Mac, but not cheap enough," said Alex Farr, manager of the Computer Factory in West Los Angeles. He said Windows 3.0 is selling "very well," as is the new IBM PS-1 computer, which comes with Microsoft software, a "mouse" mechanism similar to the Apple system and color graphics. This system retails for considerably less than a color Mac system, in some cases for half the price, said Farr.

But Greg Goeser, co-owner of ComputerLand in Los Angeles, said he thinks the cheaper Macintosh systems unveiled last month are working as a successful "counterattack" to Windows 3.0. "They're keeping Mac sales up," said Goeser.

Howard Knight, manager of the Software Supermarket in Los Angeles, said he thinks Windows 3.0 sales are leveling off following their initial "media hype" in the summer. But he said he expects it to continue to be a strong product.

"It's a nice package," said Knight.