Mr. Mace didn't really point out how Apple, specifically, failed. Seems he alluded more to the industry as a whole - Word and WordPerfect as the example.
As for failed operating systems, well, what company doesn't have them? It's part of innovation and, often, marketing. I think we can substitute word "Apple" and insert any other computer company and the story would be the same.
I'm a strong Windows user and more recently OS X on my portable. That PowerBook is one of the best computers I have ever purchased - all the power and none of the bullshit of Windows and "standard" PC hardware.
One last thought... There may not have been much competition to Microsoft over the years but that is changing. Apple still competes as does the little Penguin. Owing to the amount of time and effort required to compete in the OS space, a competitor isn't going to pop out overnight. It takes time to establish itself and grow. I can't wait to see the OS landscape in 5 to 10 years. I'm not so sure that Microsoft will be as comfortable.
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