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Chronicles

The story behind the story

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Sorry, no Apple for you: Microsoft's bid fruitless

SAN FRANCISCO — It's not every day that Microsoft Corp. asks to put a competitor's logo on one of its own products.  And the kicker is, the answer was "No."  —  In a first for Microsoft's hardware group, the company is developing a keyboard designed just for the Mac.

Seattle Post-Intelligencer Todd Bishop

Context & Ripple Effects

Microsoft's hardware group, until now a Windows-peripheral shop, is building a keyboard designed specifically for the Mac — its first — and the news breaks days after Microsoft and Apple signed a five-year software agreement in early January 2006. The wrinkle driving coverage is branding: reports said Microsoft asked to place an Apple logo on the product and was turned down, but that refusal claim is flagged as denied, so the exact state of the logo talks stands unconfirmed even as the keyboard itself is confirmed real.

The story travelled widely for a peripheral announcement — Business Week picked it up under 'The Media's Crush on Apple,' and Microsoft-focused bloggers weighed in — suggesting it read less as product news than as a symbol of Apple's pull on the market's imagination at the moment Gates took the CES stage to unveil Vista.

First-order effects

  • Microsoft's hardware group gains its first product aimed at Mac owners, extending the unit's addressable base beyond Windows PC buyers.
  • Apple holds the endorsement card: absent a confirmed logo deal, Microsoft would sell to Mac users under its own brand alone, with the refusal claim denied and unresolved.

Second-order effects

  • The five-year software pact alongside a Mac-targeted hardware product shows the two firms cooperating at the software layer while keeping hardware marks closed — accessory makers chasing Mac users face Apple's gatekeeping over platform logos.
  • With Apple mid-transition to Intel processors, dual-platform peripherals become commercially viable, nudging Microsoft's hardware economics toward designing once and selling across both installed bases.

Third-order effects

  • Platform identity shifts from a compatibility question to a trademark-and-licensing question — who may wear whose logo becomes the contested asset between rivals that also do business together, a pattern other hardware vendors will have to navigate.

The trend: Rival platforms are moving toward co-opetition in which each sells into the other's installed base while treating brand marks, not technical locks, as the scarce asset worth defending.