Apple's `Free' Fight With Microsoft?

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Oct. 23 (Bloomberg) -- Apple announced that it will for the first time start giving away its Mac software for free, starting with the latest release called Mavericks. Apple’s productivity software, including iPhoto, iMovie and Pages, also are being made available for free with the purchase of a Mac, iPhone or iPad. Bloomberg Contributing Editor Nicholas Thompson comments on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Vocabulary?

[laughter] no.

It is a surprising mood on apple -- move on apple.

I do not think this is that big of a deal.

Operating systems is something we pay for, but not something that is price-sensitive.

We do not really think about paying for them.

We buy a computer and the operating systems have been built in.

Apple moving to free makes it slightly easier to upgrade.

I do not think it will have a really powerful or profound effect on windows.

It is a nice point for those who were following the apple event.

I want to play a little bit of sound from one of the senior apple executives and get your reaction.

Others would have you spend a small fortune every year just to get their apps.

We want to do something bold, something that changes the rules of the game.

We are taking all of these productivity apps and making them available for free.

[applause] well, they are making a big deal of it.

Going back to what you said before, you're not buying it?

I think it is important.

One is the demo transition to the cloud and away from paid software.

Everything is shared in the cloud.

Perhaps the bigger threat is the google docs.

There has been this trend moving from having physical computers and software you pay for and that is a trend away from that.

It is a profound thing that has been affecting microsoft for years.

There has been a lot of confusion.

This is a continuation of that trend.

We will make it free.

That is part of the trend.

The action itself is not that big of a deal.

The reason why apple made this os mavericks trade is that this is not as big of an upgrade.

The tablets and phones is where the companies money is.

This is the time to make it free when you have a minor upgrade as opposed to a major upgrade.

Right.

Before we started the segment, we highlighted the search is on.

Steve ballmer at microsoft.

They have put a lot of pieces in play.

Part of the story is this push into hardware by microsoft.

Given this mood -- move by apple, what shall we thinking about as to who they should be looking for?

One of the things this move shows is that these companies will make money off of hardware and sell the software for free.

Whether it be cloud software or software you download, the money will come from that.

It makes you think there would be a and -- and advantage for a candidate who is used to selling hardware.

If that is indeed more of a trend that we previously thought, a it will give those candidates with hardware expands a leg up.

Is to bring it back to apple for a second, it is hard to forget the mac campaign.

They can introduce some of the free language.

As far as apple trying to spread the message of apple around the world and in itself sell more macs when people are more interested in tablets than pcs, how important do you think the announcement was?

Important question is how much a map the cost.

You buy a macbook air and it cost a certain amount that includes hardware and software.

The software is free.

That is a big deal.

If they say you will get free upgrades, that is not nearly as big of a big deal.

All good points.

Bloomberg contributing editor and editor of the new

This text has been automatically generated. It may not be 100% accurate.

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