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"He was an amazing person who could sell ice water to eskimos," says Krantz. "Without him, Apple is just a hardware company. You've seen the innovation slowly chip away." Since Jobs died, only one major new product has been released, the 2015 Apple Watch, along with upgrades to already popular products like the iPhone, iPad and Macintosh computer. "Microsoft got forced to innovate," Krantz says. "They saw all the growth with Apple, and knew they had to come up with something better. Being good wasn't good enough." Microsoft first introduced the Surface as a tablet meets laptop with a touchscreen surface in 2012. It was Microsoft's first major computer hardware release, and has evolved into a strong seller and innovative product category that's as powerful in a light, totable form factor as more expensive Apple MacBook Pro computers. At one time, Apple owned TV product placement, but now the Surface is being seen on more TV shows, including the CNN set. In the third quarter of 2016, Microsoft said revenue from Surface products realized $926 million, up 38 percent from the $672 million the prior year. That's a far cry from the $5.7 billion reported by Apple for Mac revenue in the fiscal 2016 4th quarter, but Macs are also an older product. Where Microsoft has struggled has been catching up to both Apple and Google in smartphones. The Lumia line is seemingly on its last legs, but several blogs have reported about another try, with a Surface phone/tablet that could come out this year.
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