Post by Chance FurlongFrom Tech Night Owl;
http://tinyurl.com/3tgdksd
The Microsoft Death Spiral Continues
May 6th, 2011
You could see it this past quarter, when Apple, for the first time, posted
higher profits than Microsoft; total sales were already ahead. I could
almost imagine Steve Jobs and his crew applauding and cheering when
Microsofts financials were originally announced. It was a long time
coming.
Apples ascendency was most obvious last year when the companys market
cap exceeded that of Microsoft. Whereas Apples stock is, overall, rising,
Microsofts has been flat for years. Fewer and fewer investors have
confidence in the long-term prospects, although Microsoft continues to
make profits that most companies would envy.
The problem is that Microsoft CEO Steve Ballmer doesnt seem to have a
grasp of the fact that innovation means inventing something new and
different, rather than poorly imitate what has gone before. This lack of
inspiration from the executive suite may, in part, explain why Windows
Phone 7, though it has a really nice interface, seems to be a couple of
years behind when it comes to features. Microsoft must still believe theyre
stuck in the 1990s, where the mere vaporware promise to beat or exceed the
competition some day is sufficient to keep customers calling.
These days, if theres any chance of a replay of a two-party operating
system war in the mobile space, its between Apple and Google, and
Microsoft may have a seat at the table, but probably a small one. Perhaps
their last great hope is that long-term alliance with Nokia, where Windows
Phone 7 will replace the existing Symbian based OS on the companys
smartphones come next year. Meantime, Apple earns more than Nokia on
handsets, with a fraction of the market share. Worse, telling customers
that existing Nokia gear is already obsolete doesnt help the company make
much progress this year on the high end.
And its not that Microsofts promotional campaigns seem terribly
compelling. Although Windows 7 is doing well enough in a stagnant PC
market, a large portion of the new sales involve OEM bundles, meaning the
OS is preloaded onto a new PC. Its not that Microsofts lame ads are
causing loads of people to rush into their local consumer electronics
outlet to buy a costly retail upgrade.
The Bing campaign, to boost Microsofts search engine, is curious in its
own right. The message is not simple and direct, as in any Apple ad you
can mention in recent memory. Worse, the lame attempt at humor falls flat.
Besides, whats so compelling about a free search engine anyway? How many
TV ads has Google run lately, or in your memory, yet Googles search share
remains fairly consistent. Bings gains came by cannibalizing Yahoo!
search which is, as you recall, now powered by Bing.
That Bing is now an option on a Mac with Safari might help, at least for
those who care to try a different search engine, or regard Google as the
evil empire, Microsofts former role. But most customers dont really
care a whit about changing search engine options. Google works fine. Bing
might have prettier background images, but I am not at all convinced the
search results are superior, let alone comparable.
Where is the message that Bing conveys that would make you want to switch?
Other than, as I said, encouraging people who cant tolerate Google, which
doesnt really demonstrate a provable advantage for Microsoft, or even a
sensible marketing strategy.
While Microsoft seems to be doing OK is on the game machine front and
they will likely prosper from the backlash in light of Sonys recent
Playstation online debacle, on the long haul the biggest competition is
that old nemesis, Apple, with the iPhone, iPod touch, and the iPad.
And when it comes to tablets, whenever theres talk of a potential iPad
competitor, new Android OS devices get first priority. Then theres the
curious case of the RIM BlackBerry PlayBook, which still must be bridged
with a regular BlackBerry to use an email client, not to mention RIMs
pair of CEOs who cannot voice a coherent vision for the company. Its no
wonder RIMs growth curve has flattened, and the PlayBook was greeted by
collective yawns.
Nowhere do we hear much about an impending Microsoft tablet solution.
Sure, maybe Windows 8 will have support for ARM chips, the ones used on
other tablets. But supporting a set of mobile processors doesnt mean that
Microsoft has a grasp on how to tailor the classic Windows interface to
work best on a mobile device with a touchscreen or tiny physical keyboard.
As I said, Windows Phone 7 isnt bad, actually. Aside from the missing
features, there arent a whole lot of apps available yet. Theres also a
report that Microsoft is actually trying to lure iOS developers to the
platform, because they arent coming of their own accord.
Now if Microsoft fails to adapt to the 21st century, it doesnt mean that
sales will suddenly plummet. Theres enough momentum there to keep
Microsofts stockholders, and their wealthy executives, fat and rich for a
number of years. But the trend, as Ive previously said, remains
inexorable. Its going to be downhill, and the slide will be slow and
treacherous.
You could see it this past quarter, when Apple, for the first time,
posted higher profits than Microsoft; total sales were already ahead. I
could almost imagine Steve Jobs and his crew applauding and cheering
when Microsofts financials were originally announced. It was a long
time coming.
Apples ascendency was most obvious last year when the companys market
cap exceeded that of Microsoft. Whereas Apples stock is, overall,
rising, Microsofts has been flat for years. Fewer and fewer investors
have confidence in the long-term prospects, although Microsoft continues
to make profits that most companies would envy.
The problem is that Microsoft CEO Steve Ballmer doesnt seem to have a
grasp of the fact that innovation means inventing something new and
different, rather than poorly imitate what has gone before. This lack of
inspiration from the executive suite may, in part, explain why Windows
Phone 7, though it has a really nice interface, seems to be a couple of
years behind when it comes to features. Microsoft must still believe
theyre stuck in the 1990s, where the mere vaporware promise to beat or
exceed the competition some day is sufficient to keep customers calling.
These days, if theres any chance of a replay of a two-party operating
system war in the mobile space, its between Apple and Google, and
Microsoft may have a seat at the table, but probably a small one.
Perhaps their last great hope is that long-term alliance with Nokia,
where Windows Phone 7 will replace the existing Symbian based OS on the
companys smartphones come next year. Meantime, Apple earns more than
Nokia on handsets, with a fraction of the market share. Worse, telling
customers that existing Nokia gear is already obsolete doesnt help the
company make much progress this year on the high end.
And its not that Microsofts promotional campaigns seem terribly
compelling. Although Windows 7 is doing well enough in a stagnant PC
market, a large portion of the new sales involve OEM bundles, meaning
the OS is preloaded onto a new PC. Its not that Microsofts lame ads
are causing loads of people to rush into their local consumer
electronics outlet to buy a costly retail upgrade.
The Bing campaign, to boost Microsofts search engine, is curious in its
own right. The message is not simple and direct, as in any Apple ad you
can mention in recent memory. Worse, the lame attempt at humor falls
flat. Besides, whats so compelling about a free search engine anyway?
How many TV ads has Google run lately, or in your memory, yet Googles
search share remains fairly consistent. Bings gains came by
cannibalizing Yahoo! search which is, as you recall, now powered by Bing.
That Bing is now an option on a Mac with Safari might help, at least for
those who care to try a different search engine, or regard Google as the
evil empire, Microsofts former role. But most customers dont really
care a whit about changing search engine options. Google works fine.
Bing might have prettier background images, but I am not at all
convinced the search results are superior, let alone comparable.
Where is the message that Bing conveys that would make you want to
switch? Other than, as I said, encouraging people who cant tolerate
Google, which doesnt really demonstrate a provable advantage for
Microsoft, or even a sensible marketing strategy.
While Microsoft seems to be doing OK is on the game machine front and
they will likely prosper from the backlash in light of Sonys recent
Playstation online debacle, on the long haul the biggest competition is
that old nemesis, Apple, with the iPhone, iPod touch, and the iPad.
And when it comes to tablets, whenever theres talk of a potential iPad
competitor, new Android OS devices get first priority. Then theres the
curious case of the RIM BlackBerry PlayBook, which still must be bridged
with a regular BlackBerry to use an email client, not to mention RIMs
pair of CEOs who cannot voice a coherent vision for the company. Its no
wonder RIMs growth curve has flattened, and the PlayBook was greeted by
collective yawns.
Nowhere do we hear much about an impending Microsoft tablet solution.
Sure, maybe Windows 8 will have support for ARM chips, the ones used on
other tablets. But supporting a set of mobile processors doesnt mean
that Microsoft has a grasp on how to tailor the classic Windows
interface to work best on a mobile device with a touchscreen or tiny
physical keyboard. As I said, Windows Phone 7 isnt bad, actually. Aside
from the missing features, there arent a whole lot of apps available
yet. Theres also a report that Microsoft is actually trying to lure iOS
developers to the platform, because they arent coming of their own accord.
Now if Microsoft fails to adapt to the 21st century, it doesnt mean
that sales will suddenly plummet. Theres enough momentum there to keep
Microsofts stockholders, and their wealthy executives, fat and rich for
a number of years. But the trend, as Ive previously said, remains
inexorable. Its going to be downhill, and the slide will be slow and
treacherous.
You could see it this past quarter, when Apple, for the first time,
posted higher profits than Microsoft; total sales were already ahead. I
could almost imagine Steve Jobs and his crew applauding and cheering
when Microsofts financials were originally announced. It was a long
time coming.
Apples ascendency was most obvious last year when the companys market
cap exceeded that of Microsoft. Whereas Apples stock is, overall,
rising, Microsofts has been flat for years. Fewer and fewer investors
have confidence in the long-term prospects, although Microsoft continues
to make profits that most companies would envy.
The problem is that Microsoft CEO Steve Ballmer doesnt seem to have a
grasp of the fact that innovation means inventing something new and
different, rather than poorly imitate what has gone before. This lack of
inspiration from the executive suite may, in part, explain why Windows
Phone 7, though it has a really nice interface, seems to be a couple of
years behind when it comes to features. Microsoft must still believe
theyre stuck in the 1990s, where the mere vaporware promise to beat or
exceed the competition some day is sufficient to keep customers calling.
These days, if theres any chance of a replay of a two-party operating
system war in the mobile space, its between Apple and Google, and
Microsoft may have a seat at the table, but probably a small one.
Perhaps their last great hope is that long-term alliance with Nokia,
where Windows Phone 7 will replace the existing Symbian based OS on the
companys smartphones come next year. Meantime, Apple earns more than
Nokia on handsets, with a fraction of the market share. Worse, telling
customers that existing Nokia gear is already obsolete doesnt help the
company make much progress this year on the high end.
And its not that Microsofts promotional campaigns seem terribly
compelling. Although Windows 7 is doing well enough in a stagnant PC
market, a large portion of the new sales involve OEM bundles, meaning
the OS is preloaded onto a new PC. Its not that Microsofts lame ads
are causing loads of people to rush into their local consumer
electronics outlet to buy a costly retail upgrade.
The Bing campaign, to boost Microsofts search engine, is curious in its
own right. The message is not simple and direct, as in any Apple ad you
can mention in recent memory. Worse, the lame attempt at humor falls
flat. Besides, whats so compelling about a free search engine anyway?
How many TV ads has Google run lately, or in your memory, yet Googles
search share remains fairly consistent. Bings gains came by
cannibalizing Yahoo! search which is, as you recall, now powered by Bing.
That Bing is now an option on a Mac with Safari might help, at least for
those who care to try a different search engine, or regard Google as the
evil empire, Microsofts former role. But most customers dont really
care a whit about changing search engine options. Google works fine.
Bing might have prettier background images, but I am not at all
convinced the search results are superior, let alone comparable.
Where is the message that Bing conveys that would make you want to
switch? Other than, as I said, encouraging people who cant tolerate
Google, which doesnt really demonstrate a provable advantage for
Microsoft, or even a sensible marketing strategy.
While Microsoft seems to be doing OK is on the game machine front and
they will likely prosper from the backlash in light of Sonys recent
Playstation online debacle, on the long haul the biggest competition is
that old nemesis, Apple, with the iPhone, iPod touch, and the iPad.
And when it comes to tablets, whenever theres talk of a potential iPad
competitor, new Android OS devices get first priority. Then theres the
curious case of the RIM BlackBerry PlayBook, which still must be bridged
with a regular BlackBerry to use an email client, not to mention RIMs
pair of CEOs who cannot voice a coherent vision for the company. Its no
wonder RIMs growth curve has flattened, and the PlayBook was greeted by
collective yawns.
Nowhere do we hear much about an impending Microsoft tablet solution.
Sure, maybe Windows 8 will have support for ARM chips, the ones used on
other tablets. But supporting a set of mobile processors doesnt mean
that Microsoft has a grasp on how to tailor the classic Windows
interface to work best on a mobile device with a touchscreen or tiny
physical keyboard. As I said, Windows Phone 7 isnt bad, actually. Aside
from the missing features, there arent a whole lot of apps available
yet. Theres also a report that Microsoft is actually trying to lure iOS
developers to the platform, because they arent coming of their own accord.
You could see it this past quarter, when Apple, for the first time,
posted higher profits than Microsoft; total sales were already ahead. I
could almost imagine Steve Jobs and his crew applauding and cheering
when Microsofts financials were originally announced. It was a long
time coming.
Apples ascendency was most obvious last year when the companys market
cap exceeded that of Microsoft. Whereas Apples stock is, overall,
rising, Microsofts has been flat for years. Fewer and fewer investors
have confidence in the long-term prospects, although Microsoft continues
to make profits that most companies would envy.
The problem is that Microsoft CEO Steve Ballmer doesnt seem to have a
grasp of the fact that innovation means inventing something new and
different, rather than poorly imitate what has gone before. This lack of
inspiration from the executive suite may, in part, explain why Windows
Phone 7, though it has a really nice interface, seems to be a couple of
years behind when it comes to features. Microsoft must still believe
theyre stuck in the 1990s, where the mere vaporware promise to beat or
exceed the competition some day is sufficient to keep customers calling.
These days, if theres any chance of a replay of a two-party operating
system war in the mobile space, its between Apple and Google, and
Microsoft may have a seat at the table, but probably a small one.
Perhaps their last great hope is that long-term alliance with Nokia,
where Windows Phone 7 will replace the existing Symbian based OS on the
companys smartphones come next year. Meantime, Apple earns more than
Nokia on handsets, with a fraction of the market share. Worse, telling
customers that existing Nokia gear is already obsolete doesnt help the
company make much progress this year on the high end.
And its not that Microsofts promotional campaigns seem terribly
compelling. Although Windows 7 is doing well enough in a stagnant PC
market, a large portion of the new sales involve OEM bundles, meaning
the OS is preloaded onto a new PC. Its not that Microsofts lame ads
are causing loads of people to rush into their local consumer
electronics outlet to buy a costly retail upgrade.
The Bing campaign, to boost Microsofts search engine, is curious in its
own right. The message is not simple and direct, as in any Apple ad you
can mention in recent memory. Worse, the lame attempt at humor falls
flat. Besides, whats so compelling about a free search engine anyway?
How many TV ads has Google run lately, or in your memory, yet Googles
search share remains fairly consistent. Bings gains came by
cannibalizing Yahoo! search which is, as you recall, now powered by Bing.
That Bing is now an option on a Mac with Safari might help, at least for
those who care to try a different search engine, or regard Google as the
evil empire, Microsofts former role. But most customers dont really
care a whit about changing search engine options. Google works fine.
Bing might have prettier background images, but I am not at all
convinced the search results are superior, let alone comparable.
Where is the message that Bing conveys that would make you want to
switch? Other than, as I said, encouraging people who cant tolerate
Google, which doesnt really demonstrate a provable advantage for
Microsoft, or even a sensible marketing strategy.
While Microsoft seems to be doing OK is on the game machine front and
they will likely prosper from the backlash in light of Sonys recent
Playstation online debacle, on the long haul the biggest competition is
that old nemesis, Apple, with the iPhone, iPod touch, and the iPad.
And when it comes to tablets, whenever theres talk of a potential iPad
competitor, new Android OS devices get first priority. Then theres the
curious case of the RIM BlackBerry PlayBook, which still must be bridged
with a regular BlackBerry to use an email client, not to mention RIMs
pair of CEOs who cannot voice a coherent vision for the company. Its no
wonder RIMs growth curve has flattened, and the PlayBook was greeted by
collective yawns.
Nowhere do we hear much about an impending Microsoft tablet solution.
Sure, maybe Windows 8 will have support for ARM chips, the ones used on
other tablets. But supporting a set of mobile processors doesnt mean
that Microsoft has a grasp on how to tailor the classic Windows
interface to work best on a mobile device with a touchscreen or tiny
physical keyboard. As I said, Windows Phone 7 isnt bad, actually. Aside
from the missing features, there arent a whole lot of apps available
yet. Theres also a report that Microsoft is actually trying to lure iOS
developers to the platform, because they arent coming of their own accord.
Now if Microsoft fails to adapt to the 21st century, it doesnt mean
that sales will suddenly plummet. Theres enough momentum there to keep
Microsofts stockholders, and their wealthy executives, fat and rich for
a number of years. But the trend, as Ive previously said, remains
inexorable. Its going to be downhill, and the slide will be slow and
treacherous.
You could see it this past quarter, when Apple, for the first time,
posted higher profits than Microsoft; total sales were already ahead. I
could almost imagine Steve Jobs and his crew applauding and cheering
when Microsofts financials were originally announced. It was a long
time coming.
Apples ascendency was most obvious last year when the companys market
cap exceeded that of Microsoft. Whereas Apples stock is, overall,
rising, Microsofts has been flat for years. Fewer and fewer investors
have confidence in the long-term prospects, although Microsoft continues
to make profits that most companies would envy.
The problem is that Microsoft CEO Steve Ballmer doesnt seem to have a
grasp of the fact that innovation means inventing something new and
different, rather than poorly imitate what has gone before. This lack of
inspiration from the executive suite may, in part, explain why Windows
Phone 7, though it has a really nice interface, seems to be a couple of
years behind when it comes to features. Microsoft must still believe
theyre stuck in the 1990s, where the mere vaporware promise to beat or
exceed the competition some day is sufficient to keep customers calling.
These days, if theres any chance of a replay of a two-party operating
system war in the mobile space, its between Apple and Google, and
Microsoft may have a seat at the table, but probably a small one.
Perhaps their last great hope is that long-term alliance with Nokia,
where Windows Phone 7 will replace the existing Symbian based OS on the
companys smartphones come next year. Meantime, Apple earns more than
Nokia on handsets, with a fraction of the market share. Worse, telling
customers that existing Nokia gear is already obsolete doesnt help the
company make much progress this year on the high end.
And its not that Microsofts promotional campaigns seem terribly
compelling. Although Windows 7 is doing well enough in a stagnant PC
market, a large portion of the new sales involve OEM bundles, meaning
the OS is preloaded onto a new PC. Its not that Microsofts lame ads
are causing loads of people to rush into their local consumer
electronics outlet to buy a costly retail upgrade.
The Bing campaign, to boost Microsofts search engine, is curious in its
own right. The message is not simple and direct, as in any Apple ad you
can mention in recent memory. Worse, the lame attempt at humor falls
flat. Besides, whats so compelling about a free search engine anyway?
How many TV ads has Google run lately, or in your memory, yet Googles
search share remains fairly consistent. Bings gains came by
cannibalizing Yahoo! search which is, as you recall, now powered by Bing.
That Bing is now an option on a Mac with Safari might help, at least for
those who care to try a different search engine, or regard Google as the
evil empire, Microsofts former role. But most customers dont really
care a whit about changing search engine options. Google works fine.
Bing might have prettier background images, but I am not at all
convinced the search results are superior, let alone comparable.
Where is the message that Bing conveys that would make you want to
switch? Other than, as I said, encouraging people who cant tolerate
Google, which doesnt really demonstrate a provable advantage for
Microsoft, or even a sensible marketing strategy.
While Microsoft seems to be doing OK is on the game machine front and
they will likely prosper from the backlash in light of Sonys recent
Playstation online debacle, on the long haul the biggest competition is
that old nemesis, Apple, with the iPhone, iPod touch, and the iPad.
And when it comes to tablets, whenever theres talk of a potential iPad
competitor, new Android OS devices get first priority. Then theres the
curious case of the RIM BlackBerry PlayBook, which still must be bridged
with a regular BlackBerry to use an email client, not to mention RIMs
pair of CEOs who cannot voice a coherent vision for the company. Its no
wonder RIMs growth curve has flattened, and the PlayBook was greeted by
collective yawns.
Nowhere do we hear much about an impending Microsoft tablet solution.
Sure, maybe Windows 8 will have support for ARM chips, the ones used on
other tablets. But supporting a set of mobile processors doesnt mean
that Microsoft has a grasp on how to tailor the classic Windows
interface to work best on a mobile device with a touchscreen or tiny
physical keyboard. As I said, Windows Phone 7 isnt bad, actually. Aside
from the missing features, there arent a whole lot of apps available
yet. Theres also a report that Microsoft is actually trying to lure iOS
developers to the platform, because they arent coming of their own accord.
Now if Microsoft fails to adapt to the 21st century, it doesnt mean
that sales will suddenly plummet. Theres enough momentum there to keep
Microsofts stockholders, and their wealthy executives, fat and rich for
a number of years. But the trend, as Ive previously said, remains
inexorable. Its going to be downhill, and the slide will be slow and
treacherous.
Now if Microsoft fails to adapt to the 21st century, it doesnt mean
that sales will suddenly plummet. Theres enough momentum there to keep
Microsofts stockholders, and their wealthy executives, fat and rich for
a number of years. But the trend, as Ive previously said, remains
inexorable. Its going to be downhill, and the slide will be slow and
treacherous.
You could see it this past quarter, when Apple, for the first time,
posted higher profits than Microsoft; total sales were already ahead. I
could almost imagine Steve Jobs and his crew applauding and cheering
when Microsofts financials were originally announced. It was a long
time coming.
Apples ascendency was most obvious last year when the companys market
cap exceeded that of Microsoft. Whereas Apples stock is, overall,
rising, Microsofts has been flat for years. Fewer and fewer investors
have confidence in the long-term prospects, although Microsoft continues
to make profits that most companies would envy.
The problem is that Microsoft CEO Steve Ballmer doesnt seem to have a
grasp of the fact that innovation means inventing something new and
different, rather than poorly imitate what has gone before. This lack of
inspiration from the executive suite may, in part, explain why Windows
Phone 7, though it has a really nice interface, seems to be a couple of
years behind when it comes to features. Microsoft must still believe
theyre stuck in the 1990s, where the mere vaporware promise to beat or
exceed the competition some day is sufficient to keep customers calling.
These days, if theres any chance of a replay of a two-party operating
system war in the mobile space, its between Apple and Google, and
Microsoft may have a seat at the table, but probably a small one.
Perhaps their last great hope is that long-term alliance with Nokia,
where Windows Phone 7 will replace the existing Symbian based OS on the
companys smartphones come next year. Meantime, Apple earns more than
Nokia on handsets, with a fraction of the market share. Worse, telling
customers that existing Nokia gear is already obsolete doesnt help the
company make much progress this year on the high end.
And its not that Microsofts promotional campaigns seem terribly
compelling. Although Windows 7 is doing well enough in a stagnant PC
market, a large portion of the new sales involve OEM bundles, meaning
the OS is preloaded onto a new PC. Its not that Microsofts lame ads
are causing loads of people to rush into their local consumer
electronics outlet to buy a costly retail upgrade.
The Bing campaign, to boost Microsofts search engine, is curious in its
own right. The message is not simple and direct, as in any Apple ad you
can mention in recent memory. Worse, the lame attempt at humor falls
flat. Besides, whats so compelling about a free search engine anyway?
How many TV ads has Google run lately, or in your memory, yet Googles
search share remains fairly consistent. Bings gains came by
cannibalizing Yahoo! search which is, as you recall, now powered by Bing.
That Bing is now an option on a Mac with Safari might help, at least for
those who care to try a different search engine, or regard Google as the
evil empire, Microsofts former role. But most customers dont really
care a whit about changing search engine options. Google works fine.
Bing might have prettier background images, but I am not at all
convinced the search results are superior, let alone comparable.
Where is the message that Bing conveys that would make you want to
switch? Other than, as I said, encouraging people who cant tolerate
Google, which doesnt really demonstrate a provable advantage for
Microsoft, or even a sensible marketing strategy.
While Microsoft seems to be doing OK is on the game machine front and
they will likely prosper from the backlash in light of Sonys recent
Playstation online debacle, on the long haul the biggest competition is
that old nemesis, Apple, with the iPhone, iPod touch, and the iPad.
And when it comes to tablets, whenever theres talk of a potential iPad
competitor, new Android OS devices get first priority. Then theres the
curious case of the RIM BlackBerry PlayBook, which still must be bridged
with a regular BlackBerry to use an email client, not to mention RIMs
pair of CEOs who cannot voice a coherent vision for the company. Its no
wonder RIMs growth curve has flattened, and the PlayBook was greeted by
collective yawns.
Nowhere do we hear much about an impending Microsoft tablet solution.
Sure, maybe Windows 8 will have support for ARM chips, the ones used on
other tablets. But supporting a set of mobile processors doesnt mean
that Microsoft has a grasp on how to tailor the classic Windows
interface to work best on a mobile device with a touchscreen or tiny
physical keyboard. As I said, Windows Phone 7 isnt bad, actually. Aside
from the missing features, there arent a whole lot of apps available
yet. Theres also a report that Microsoft is actually trying to lure iOS
developers to the platform, because they arent coming of their own accord.
Now if Microsoft fails to adapt to the 21st century, it doesnt mean
that sales will suddenly plummet. Theres enough momentum there to keep
Microsofts stockholders, and their wealthy executives, fat and rich for
a number of years. But the trend, as Ive previously said, remains
inexorable. Its going to be downhill, and the slide will be slow and
treacherous.
You could see it this past quarter, when Apple, for the first time,
posted higher profits than Microsoft; total sales were already ahead. I
could almost imagine Steve Jobs and his crew applauding and cheering
when Microsofts financials were originally announced. It was a long
time coming.
Apples ascendency was most obvious last year when the companys market
cap exceeded that of Microsoft. Whereas Apples stock is, overall,
rising, Microsofts has been flat for years. Fewer and fewer investors
have confidence in the long-term prospects, although Microsoft continues
to make profits that most companies would envy.
The problem is that Microsoft CEO Steve Ballmer doesnt seem to have a
grasp of the fact that innovation means inventing something new and
different, rather than poorly imitate what has gone before. This lack of
inspiration from the executive suite may, in part, explain why Windows
Phone 7, though it has a really nice interface, seems to be a couple of
years behind when it comes to features. Microsoft must still believe
theyre stuck in the 1990s, where the mere vaporware promise to beat or
exceed the competition some day is sufficient to keep customers calling.
These days, if theres any chance of a replay of a two-party operating
system war in the mobile space, its between Apple and Google, and
Microsoft may have a seat at the table, but probably a small one.
Perhaps their last great hope is that long-term alliance with Nokia,
where Windows Phone 7 will replace the existing Symbian based OS on the
companys smartphones come next year. Meantime, Apple earns more than
Nokia on handsets, with a fraction of the market share. Worse, telling
customers that existing Nokia gear is already obsolete doesnt help the
company make much progress this year on the high end.
And its not that Microsofts promotional campaigns seem terribly
compelling. Although Windows 7 is doing well enough in a stagnant PC
market, a large portion of the new sales involve OEM bundles, meaning
the OS is preloaded onto a new PC. Its not that Microsofts lame ads
are causing loads of people to rush into their local consumer
electronics outlet to buy a costly retail upgrade.
The Bing campaign, to boost Microsofts search engine, is curious in its
own right. The message is not simple and direct, as in any Apple ad you
can mention in recent memory. Worse, the lame attempt at humor falls
flat. Besides, whats so compelling about a free search engine anyway?
How many TV ads has Google run lately, or in your memory, yet Googles
search share remains fairly consistent. Bings gains came by
cannibalizing Yahoo! search which is, as you recall, now powered by Bing.
That Bing is now an option on a Mac with Safari might help, at least for
those who care to try a different search engine, or regard Google as the
evil empire, Microsofts former role. But most customers dont really
care a whit about changing search engine options. Google works fine.
Bing might have prettier background images, but I am not at all
convinced the search results are superior, let alone comparable.
Where is the message that Bing conveys that would make you want to
switch? Other than, as I said, encouraging people who cant tolerate
Google, which doesnt really demonstrate a provable advantage for
Microsoft, or even a sensible marketing strategy.
While Microsoft seems to be doing OK is on the game machine front and
they will likely prosper from the backlash in light of Sonys recent
Playstation online debacle, on the long haul the biggest competition is
that old nemesis, Apple, with the iPhone, iPod touch, and the iPad.
And when it comes to tablets, whenever theres talk of a potential iPad
competitor, new Android OS devices get first priority. Then theres the
curious case of the RIM BlackBerry PlayBook, which still must be bridged
with a regular BlackBerry to use an email client, not to mention RIMs
pair of CEOs who cannot voice a coherent vision for the company. Its no
wonder RIMs growth curve has flattened, and the PlayBook was greeted by
collective yawns.
Nowhere do we hear much about an impending Microsoft tablet solution.
Sure, maybe Windows 8 will have support for ARM chips, the ones used on
other tablets. But supporting a set of mobile processors doesnt mean
that Microsoft has a grasp on how to tailor the classic Windows
interface to work best on a mobile device with a touchscreen or tiny
physical keyboard. As I said, Windows Phone 7 isnt bad, actually. Aside
from the missing features, there arent a whole lot of apps available
yet. Theres also a report that Microsoft is actually trying to lure iOS
developers to the platform, because they arent coming of their own accord.
Now if Microsoft fails to adapt to the 21st century, it doesnt mean
that sales will suddenly plummet. Theres enough momentum there to keep
Microsofts stockholders, and their wealthy executives, fat and rich for
a number of years. But the trend, as Ive previously said, remains
inexorable. Its going to be downhill, and the slide will be slow and
treacherous.
You could see it this past quarter, when Apple, for the first time,
posted higher profits than Microsoft; total sales were already ahead. I
could almost imagine Steve Jobs and his crew applauding and cheering
when Microsofts financials were originally announced. It was a long
time coming.
Apples ascendency was most obvious last year when the companys market
cap exceeded that of Microsoft. Whereas Apples stock is, overall,
rising, Microsofts has been flat for years. Fewer and fewer investors
have confidence in the long-term prospects, although Microsoft continues
to make profits that most companies would envy.
The problem is that Microsoft CEO Steve Ballmer doesnt seem to have a
grasp of the fact that innovation means inventing something new and
different, rather than poorly imitate what has gone before. This lack of
inspiration from the executive suite may, in part, explain why Windows
Phone 7, though it has a really nice interface, seems to be a couple of
years behind when it comes to features. Microsoft must still believe
theyre stuck in the 1990s, where the mere vaporware promise to beat or
exceed the competition some day is sufficient to keep customers calling.
These days, if theres any chance of a replay of a two-party operating
system war in the mobile space, its between Apple and Google, and
Microsoft may have a seat at the table, but probably a small one.
Perhaps their last great hope is that long-term alliance with Nokia,
where Windows Phone 7 will replace the existing Symbian based OS on the
companys smartphones come next year. Meantime, Apple earns more than
Nokia on handsets, with a fraction of the market share. Worse, telling
customers that existing Nokia gear is already obsolete doesnt help the
company make much progress this year on the high end.
And its not that Microsofts promotional campaigns seem terribly
compelling. Although Windows 7 is doing well enough in a stagnant PC
market, a large portion of the new sales involve OEM bundles, meaning
the OS is preloaded onto a new PC. Its not that Microsofts lame ads
are causing loads of people to rush into their local consumer
electronics outlet to buy a costly retail upgrade.
The Bing campaign, to boost Microsofts search engine, is curious in its
own right. The message is not simple and direct, as in any Apple ad you
can mention in recent memory. Worse, the lame attempt at humor falls
flat. Besides, whats so compelling about a free search engine anyway?
How many TV ads has Google run lately, or in your memory, yet Googles
search share remains fairly consistent. Bings gains came by
cannibalizing Yahoo! search which is, as you recall, now powered by Bing.
That Bing is now an option on a Mac with Safari might help, at least for
those who care to try a different search engine, or regard Google as the
evil empire, Microsofts former role. But most customers dont really
care a whit about changing search engine options. Google works fine.
Bing might have prettier background images, but I am not at all
convinced the search results are superior, let alone comparable.
Where is the message that Bing conveys that would make you want to
switch? Other than, as I said, encouraging people who cant tolerate
Google, which doesnt really demonstrate a provable advantage for
Microsoft, or even a sensible marketing strategy.
While Microsoft seems to be doing OK is on the game machine front and
they will likely prosper from the backlash in light of Sonys recent
Playstation online debacle, on the long haul the biggest competition is
that old nemesis, Apple, with the iPhone, iPod touch, and the iPad.
And when it comes to tablets, whenever theres talk of a potential iPad
competitor, new Android OS devices get first priority. Then theres the
curious case of the RIM BlackBerry PlayBook, which still must be bridged
with a regular BlackBerry to use an email client, not to mention RIMs
pair of CEOs who cannot voice a coherent vision for the company. Its no
wonder RIMs growth curve has flattened, and the PlayBook was greeted by
collective yawns.
Nowhere do we hear much about an impending Microsoft tablet solution.
Sure, maybe Windows 8 will have support for ARM chips, the ones used on
other tablets. But supporting a set of mobile processors doesnt mean
that Microsoft has a grasp on how to tailor the classic Windows
interface to work best on a mobile device with a touchscreen or tiny
physical keyboard. As I said, Windows Phone 7 isnt bad, actually. Aside
from the missing features, there arent a whole lot of apps available
yet. Theres also a report that Microsoft is actually trying to lure iOS
developers to the platform, because they arent coming of their own accord.
Now if Microsoft fails to adapt to the 21st century, it doesnt mean
that sales will suddenly plummet. Theres enough momentum there to keep
Microsofts stockholders, and their wealthy executives, fat and rich for
a number of years. But the trend, as Ive previously said, remains
inexorable. Its going to be downhill, and the slide will be slow and
treacherous.