Microsoft hasn't really innovated anything in years. Apple spent a good chunk of the previous decade innovating itself to the top, but their innovating days are behind them. Google doesn't innovate as much as they used to, but they still innovate. There seems to be a high correlation between how much a company innovates in a market, and their market position. Google's Android is at the top of the mobile operating system landscape. Microsoft is near the bottom.
When competitors emerge, companies often have two ways of competing. The first is the try and hold back your competitor. This usually involves patent wars and the Eastern District of Texas. The other is to actually compete by being better than your competition. Microsoft and Apple have chosen the former. The goal of holding back your competitors is to prevent them from reaching your level of technology so that you don't actually have to do anything. It is much easier to do nothing than it is to actually compete. If people are already buying your technology, then there is no point in investing in creating new technology. You can just sit around collecting money. What you care about is your income, not the people providing your income.
The thing about competition is that is creates better products for everything. Apple creates a multitouch smartphone (that is not the first....it just looks appealing to the masses). Google creates a rival operating system but tacks on more features. Apple should add those new features to its phone, but instead decides to lawyer up and file patent suit after patent suit. This does not help Apple's customers. This doesn't help Google's customers. This doesn't help any other company that wants to create a 3rd major mobile operating system. This is the very definition of anti-competitive.
Lets imagine a world where Apple decided to actually compete instead of whining like a little baby. When Google innovates new features, Apple can copy those features. Apple customers would be even happier! Heaven forbid Apple actually innovate something new (and not claim logic next steps as innovation).
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