Tim Cook Just Trashed Microsoft And Its Windows 8 Strategy

Paraphrasing, Cook said, "Our competition is confused. They're turning tablets into PCs and PCs into tablets. Who knows what they're going to do next?"

Microsoft has tried to have it both ways with the Windows 8 and its Surface tablet. Windows 8 has two operating systems in one. One is with tiles that it touch based, while the other is a traditional desktop system. A user switches between the interfaces with a press of a button.

Microsoft believes this is a better system than, say, owning a MacBook and an iPad. Instead of having to switch between two devices, Microsoft thinks it's better for users to have it all in one package.

So far, customers haven't agreed with Microsoft. It had to take a $900 million write down on the Surface after weak sales.

Later in the presentation, as svp/software engineering Craig Federighi announced that the new OS X Mavericks operating system would be free, Federighi showed a box labeled Windows 8, with a $199 price tag, exploding.