"Microsoft (NASDAQ: MSFT) was falling by almost 9% on Friday after the company reported disappointing results the day before. Wall Street tends to overact to these kinds of things but, make no mistake, this is much more than a transitory setback for the company. Microsoft has some really serious long-term problems that require a change at the top.
"Microsoft is losing the consumer, the company is still quite strong in the corporate sector, but that´s hardly enough to regain its former glory. The company, which used to rule the technology industry, missed many of the most important trends in the industry over the last decade: mobile, search, online advertising and social networks, among others.
"Importantly, it wasn´t because the company didn´t have enough resources to capitalize them that Microsoft missed these opportunities. On the contrary, its near monopolistic position provided by Windows and Office ten years ago meant not only big, fat profit margins for the company, but also an invaluable strategic asset in terms of competitive strength.
"The company has followed the strategy of not trying to be the first to innovate, but the first to profit. This means selling its own versions of new technologies as opposed to building new things from scratch. This used to work when Microsoft was bigger and stronger than its rivals, but that's not the case anymore.
"The Netscape vs. Explorer example can be quite illustrative about how this used to function: by owning the operating system in the vast majority of computers around the world, Microsoft managed to beat Netscape in spite of starting in second position to the browser race.
"But things are very different nowadays, mobile computing is here to stay and Microsoft is seriously lagging the competition. Judging by the Surface flop, the company no longer has the strength to make big profits in areas where other companies innovate first."
"We'll find out how much the market wants an OS that works the same across all devices from phones to desktops."
Microsoft already tried that. That's why tablets and smartphones from Microsoft years ago didn't catch on.
Oh, please. It's precisely because I've been watching Microsoft for a long time that I know what I'm saying. The Windows style user interface just gets in the way on a small-screen device.
The CPU you're using is invisible to a remote website.
Because monitoring and excluding them would be far too labor-intensive.
"...100 million years ago the climate was warmer. "
Interesting admission. Climate change happens without #$%$ sapiens after all. We weren't around 100 million years ago.
This represents a watershed moment, a capitulation.
"For years, some top Windows executives at Microsoft (MSFT) wouldn’t even say the word “Apple” in interviews, although one used the phrase “the fruit company.” Times have changed: In a June interview, Julie Larson-Green, then chief of Windows engineering, said the company should respond to the growing dominance of Apple’s (AAPL) iOS and Google’s (GOOG) Android on mobile devices by developing apps for those platforms. “We can provide unique, differentiated experiences on our devices and on other people’s devices,” said Larson-Green, who on July 11 was named to run Microsoft’s new hardware and studios group in the company’s latest reorganization.
"Larson-Green’s way of thinking is prevailing at Microsoft as the company faces plummeting demand for Windows PCs. Its operating systems now control 20 percent of the total consumer-computing market, which includes smartphones and tablets, compared with 42 percent for Android and 24 percent for Apple’s systems, Goldman Sachs (GS) data show. Microsoft has struggled to move into mobile devices; its Surface tablets accounted for just 3.7 percent of tablet sales, and phones running its Windows Phone operating system made up 3.2 percent of smartphone sales in the first quarter, according to market researcher IDC. On July 18, Microsoft announced its biggest quarterly profit shortfall in more than a decade, taking a $900 million writedown on unsold Surface tablets.
" “Microsoft is going through a little bit of a DNA change,” Levie says. “The world of blocking out or crippling your platform to prevent your competitors from gaining traction or being successful is just going to mean people move to another platform.” "
"The bottom line: Microsoft is rethinking its longtime reluctance to build apps for other mobile platforms."
A change of policy cannot be more fundamental than this. It means that Microsoft
Previous message was truncated by Yahoo. As I was saying:
This means that Microsoft management knows the company is in trouble, and they are desperate enough to do ANYTHING that might save the company from bankruptcy. Whether it's too little, too late, we must wait to see.
The name refers to an inhabitant of Vienna, Austria, known to natives as Wien. The W is properly pronounced like an English V; "ie" sounds like a long "e" in English; "ei" would sound like a long "i", as in Einstein.
According to Internet Usage Statistics (google it) there are already 2.4 billion Internet users in the world. They may not all be using different computers. Some may be sharing.
And Kin? And XBox One?
No, each debacle has a lasting effect, though no one flop is enough to destroy the company. The cumulative effect is to paint the company as a chronic loser.
If he did that, it wouldn't be Microsoft any more.
Abraham Lincoln was a Republican.
Some years after the war, southern blacks and those inclined to exploit them migrated to northern cities, taking their Democrat politics with them. Hence Chicago's south side; New York's Harlem; Gary, Indiana; and Detroit.
Sour grapes. You're just bitter because they are brighter than you.