Why did Microsoft do it?

Started 6 months ago | Discussions thread
malch
Veteran MemberPosts: 9,263
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Re: I wasn't
In reply to kelpdiver, 6 months ago

kelpdiver wrote:

Put it more simple - MS still ranks as the 4th largest company in the world, despite this decade of supposed suffering. (Google may pass it shortly, but it's still top 5 or 6). It makes only a couple billion a year less than Apple in profit (they rank 3rd and 4th behind oil companies), it just doesn't have the same market cap. It is 6th most profitable as percentage of revenues - Apple is 24th. And for those who think Windows 8 will spell the end...bear in mind that Vista was worse. But inertia will keep them rolling in cash for a long time to come.

Yes, MS is a big company and I didn't say otherwise.

For the record, I'm not an Apple fanboy; the wife's iPhone is the only Apple product in our house. I buy more from B&H than I do from Amazon and I have a kind of love-hate thing with Google.

But MS faces some serious challenges. Their stock has been flat for a decade and most of their new product/market initiatives have flopped. New Windows and Office releases are becoming something of a yawn.

That is a very unhappy position for any major business and their management.

Unless MS can roll out successful new products and re-establish a growth trajectory, they will fall by the wayside. That might happen very slowly but it could also happen rather quickly in some scenarios.

Now, it could also be said that the US technology sector as a whole is suffering from many of the same problems. Apple may cease to innovate without Jobs. Intel, HP, Cisco, and many others face challenges too. The technology sector has been through a 30 year boom. And now it might just be running into a bust.

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