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  (Source: windows8update.com)
Eroding Windows sales is hurting the stock price at Microsoft

Microsoft is the largest software company in the world and there is little to indicate that it will cease being the biggest gorilla in the cage anytime soon. Although profits at Microsoft were up and were greater than Wall Street expected, the company has seen its stock plummet and sales of its Windows operating systems are sagging. 

Microsoft offered up the financial details for its latest quarter yesterday. According to the numbers, Microsoft's Windows division saw sales of Windows 7 OS slide. This is attributed in part to the sagging PC sales that were down 1% in the same three month time period compared to a year ago. When PC sales sag, so do sales of Windows since the vast majority of PCs shipped run Windows in some flavor.

At the same time, some of the blame for sagging Windows sales and slowing PC sales is attributed the popularity of other gadgets and devices like the iPad. The iPad and other tablets are encroaching on the PC market in a noticeable way and many feel that trend will only grow.

As a result of Windows losing momentum in the marketplace and uncertainty of PC sales Microsoft has seen its stock price fall 1.2% to $26.37 in trading reports Reuters.

Capital Advisors Growth fund Channing Smith said, "Microsoft to me is no longer a growth stock, but it is a very attractive value stock. They continue to generate tremendous free cash flow. Their balance sheet is really unmatched." He continued, "What you will begin to see is a shift away from growth investors. You are seeing that transition where Microsoft is in no man's land, but I think they will become increasingly more attractive to value investors."

Over the last year, Microsoft's stock has lost 14% compared with an overall growth of 16% for the Nasdaq. While Windows slipped, other segments of Microsoft's business did well and took up the slack. Overall, net profit at Microsoft was up 31% in fiscal Q3 to $5.2 billion amounting to 61 cents per share. After excluding the tax benefit Microsoft profits still met analyst expectations.

Standouts for the quarter included the Office Division which saw a 21% increase in sales to $5.2 billion, and the Entertainment and Devices Division relied on the Xbox 360 and Kinect to rack up $1.9 billion in sales.

The much talked about deal for Bing to provide search results on Yahoo is still not performing as Microsoft had hoped with the division posting a loss of $726 million.



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By superPC on 4/29/2011 11:03:24 AM , Rating: 3
with their condition on the stock market windows 8 do seem like a really risky thing to do. it could sink MS if it flop or it can help keep MS afloat for a long time (like XP did a decade ago).

think about it. they plan on making a windows that's compact and hardware friendly enough so it could run on a cell phone processor (it has been shown to run on tegra 2 devices), yet still put a whole lot of stuff in it (the famous MS legacy support for hardware and software). that's contradictory if it doesn't sacrifice one or the other. at the same time windows 8 might bring even more GUI (windows 7 has 2 GUI the media center and regular desktop) judging from videos of windows 8 leaks http://www.geek.com/articles/mobile/windows-8-metr... . worse still it will launched within the next 18 months. so people that want to buy a PC now might postpone their purchase for a few months more (therefore reducing windows 7 sales).

on the other hand MS has enjoyed being a virtual monopoly for a long time. it might be time for something to knock some sense in to them and make them innovate.




By StevoLincolnite on 4/29/2011 11:19:05 AM , Rating: 5
quote:
it could sink MS if it flop or it can help keep MS afloat for a long time (like XP did a decade ago).


I think that's a little extreme.
Microsoft doesn't actually need Windows OS to stay afloat, if Windows died off completely all that would really happen is massive stock drops.
Microsoft would then just sack allot of workers and refocus on it's Productivity and Entertainment divisions which still rakes in a significant amount of cash.

Microsoft still does innovate and still does listen to it's customers, more so than their competitors... For instance:
* Complaints of Vista got us Windows 7.
* Kinect. (It might have it's issues, but it's still innovative!)
* Windows Phone 7. (It's actually a rather enjoyable device to use.)
Heck when Microsoft is planning a new Direct X version they actually go around to all the developers and hardware manufacturers and asks them what they would like to see!

Unfortunately Microsoft doesn't seem to have the loyal cult following that it's competitors enjoy, so even when they do have the superior product it's not guaranteed to be an instant success.


By Smilin on 4/29/2011 11:34:15 AM , Rating: 4
Agreed.

Windows and Office are both huge cash cows but MSFT would still be a completely profitable company without them.

Apple has solidified an iron grip on it's markets but would nearly go bankrupt if it lost them. I see no signs of this happening anytime soon but all things change. Android is mostly eating up non-Apple marketshare as well as growing the market as a whole.

Google is more worrisome. There is search advertising but that's it. They cannot seem to get any second cash cow off the ground and frankly the tiny bites from bing are starting to have an effect. Android drives search advertising but otherwise generates no profit and the thing will remain a litigation time-bomb for a while yet.

I thought Google TV was a winner: Innovative product and it got in early in the market. Now it seems Google doing what Google does (stealing intellectual property) backfired with the major networks. Xbox is beginning to look like a winner in the IPTV space and MSFT will earn profit on it, not *just* added search traffic.


By Smilin on 5/2/2011 9:53:13 AM , Rating: 3
I don't think we disagree. Cloud is indeed their next market but they won't be able to just walk into pure dominance like they did against very weak search competitors. It doesn't gain the attention that mobile and search does but Microsoft is already #1 in the cloud space and gaining momentum, not losing it.

My point was just how dependent on search revenue Google is. They have other products but none of them would support the weight of the rest of the company. MSFT has some 900 SKUs besides Windows and Office and they would still be in the black if they lost those two.


By KoolAidMan1 on 4/30/2011 3:21:53 AM , Rating: 2
Incorrect. Software carries insanely high profit margins. Without Windows and Office being sold to businesses all over the world, Microsoft's net profit would be ridiculously low. The profit from their hardware, even taking the Kinect into account, really hasn't amounted to much over the last five years of the XBox 360's lifespan.

Microsoft is software sales, end of story. Lose Windows and Office and they lose the main thing that keeps them afloat. It is what pays for all of their loss leaders.


By DrChemist on 4/29/2011 4:17:27 PM , Rating: 3
Exactly.

There is this complete god following of Google and Apple. As if none can ever do any wrong. Every scandal that comes out only gets put off as if it's okay because "everyone else probably does it", or "I trust them with my information and pictures of my house because they give me free services and programs all the time."

I buy and use things on the notion that if you make the best product I will use it. Perfect example is WP7 or Intel and AMD. I had an iPhone, droid, and now WP7. When AMD got better I bot AMD, when Intel surpassed them I bought Intel. People need to stop being fan boys and give credit where credit is due.


By michael2k on 4/29/2011 8:09:27 PM , Rating: 5
Are you kidding?

36% of it's profit is Windows. 41% is Office.

Tools and Server is only 18%. XBox and Zune is 3%. Their losses? $1.8b last quarter, which is all the profit they made from Server and Tools.

Also, without Windows, there wouldn't be a foundation for the Server and Tools (Visual Studio, for example, requires Windows, and Server 2008 requires Windows as well).


By AssBall on 4/29/2011 9:44:22 PM , Rating: 2
Where did you get this information?


By michael2k on 4/30/2011 2:53:47 AM , Rating: 3
Microsoft's quarterly earnings report.


By StevoLincolnite on 4/30/2011 12:05:45 AM , Rating: 2
quote:
Are you kidding?


Nup.

They would re-structure, as any good company would when a main product line goes south, is that to hard to fathom?

It probably wouldn't be the same Microsoft as it is today, but Microsoft as a company would still continue to exist, regardless of the doom and gloom projections from various corners.

If Windows OS does falter and die off...
Other platforms will take it's place, suddenly all the items you posted will just get ported to new platforms where it makes sense.

Not that I expect Windows to disappear any time soon, it's still the dominant OS for Desktops/Laptops/Netbooks.


By KoolAidMan1 on 4/30/2011 3:23:25 AM , Rating: 2
Those are quite a few "what ifs" and hypotheticals in your post.


By Tony Swash on 4/30/2011 7:30:56 AM , Rating: 1
quote:
Nup.

They would re-structure, as any good company would when a main product line goes south, is that to hard to fathom?

It probably wouldn't be the same Microsoft as it is today, but Microsoft as a company would still continue to exist, regardless of the doom and gloom projections from various corners.

If Windows OS does falter and die off...
Other platforms will take it's place, suddenly all the items you posted will just get ported to new platforms where it makes sense.

Not that I expect Windows to disappear any time soon, it's still the dominant OS for Desktops/Laptops/Netbooks.


The problem is that Microsoft has been trying to restructure since the 1990s, it has spent the last fifteen years desperately chasing every new tech market and has introduced one new product and new initiative after another. And all have failed as businesses initiatives. None have made more than insignificant profits and many have made gigantic losses. There is no evidence that this trend will change.

Microsoft won't go away they will just grow ever less important in the tech world. What they do will matter less and less. What they do now hardly matters at all. Windows 8? Yawn. WP7? Snooze.

Microsoft needs a near death experience. Until it actually feels an existential threat it will remain insulated from its own laziness and ineptitude by its Windows/Office profits.


By StevoLincolnite on 4/30/2011 2:44:44 PM , Rating: 2
quote:
The problem is that Microsoft has been trying to restructure since the 1990s


Actually Microsoft has been trying to diversify since the 1990's, not restructure. Their is a difference.

quote:
And all have failed as businesses initiatives.


Negative, not all.
Microsoft's entertainment division has seen fantastic growth over the last few years, namely because of the Xbox 360.

quote:
What they do now hardly matters at all. Windows 8? Yawn. WP7? Snooze.


Windows 8? It's coming to the ARM architecture, that's a big one. Suddenly we will get fairly full-featured desktops on systems that use a negligible amount of power... Think: HTPC's, File servers the works.
Should be interesting how backwards compatibility turns out.

Then you have Windows phone 7... Personally I love the OS, the interface feels incredibly smooth and responsive, give it time to gestate with Nokia before we see how it turns out in regards to apps and support.


By Tony Swash on 4/30/2011 6:31:26 PM , Rating: 2
quote:
quote:
The problem is that Microsoft has been trying to restructure since the 1990s

Actually Microsoft has been trying to diversify since the 1990's, not restructure. Their is a difference.

quote:
And all have failed as businesses initiatives.

Negative, not all.
Microsoft's entertainment division has seen fantastic growth over the last few years, namely because of the Xbox 360.

quote:
What they do now hardly matters at all. Windows 8? Yawn. WP7? Snooze.

Windows 8? It's coming to the ARM architecture, that's a big one. Suddenly we will get fairly full-featured desktops on systems that use a negligible amount of power... Think: HTPC's, File servers the works.
Should be interesting how backwards compatibility turns out.

Then you have Windows phone 7... Personally I love the OS, the interface feels incredibly smooth and responsive, give it time to gestate with Nokia before we see how it turns out in regards to apps and support.


Diversify - restructure - semantics. I used restructure because that was the word used in the comment that I responding to.

The Xbox is a perfect example of the point I was making, which is that for all their efforts Microsoft has failed to develop any important new streams of profitability to reduce their dependency on their ageing cash cows of Windows and Office. For all the numbers of Xbox sold MS have made very little money, they spent billions to make millions.

As for Widows on ARM that will mean nothing unless MS utterly rewrite the OS to optimise it for touch (and that does not mean any sort of 'skin' it means a fundamental rewrite) and if they do such a deep rewrite it will not be backwardly compatible (how could it - the old Windows apps are not designed for touch). So to catch up in the tablet world MS needs to come out with a new OS that works really great straight off, somehow create an app ecosystem out of nothing and then get a diverse bunch of OEMs to come up with hardware that betters the likes of Apple. Pretty tough call in my opinion, especially given that whatever MS come up with will be going up against iPad3 or iPad4 and iOS5 and maybe iOS6. Good luck with that.

WP7. Still no sales figures being released - what does that tell you? Nokia - a collapsing business with collapsing sales. If it all goes incredibly well for MS with WP7 they might just end with 15% of the market (unlikely but just possible I suppose) and then so what? Even with 30% of the phone OS market how much money can MS make going up against a free OS and another OS making it's money on hardware? Even a super successful WP7 will simply not make much money for MS.


By Smilin on 5/2/2011 1:05:05 PM , Rating: 2
quote:
The Xbox is a perfect example of the point I was making, which is that for all their efforts Microsoft has failed to develop any important new streams of profitability to reduce their dependency on their ageing cash cows of Windows and Office. For all the numbers of Xbox sold MS have made very little money, they spent billions to make millions


Sorry but XBL Gold subscriptions alone pull in 1.3bn per year. The original Xbox lost money but the 360 was profitable through XBL and licensing almost immediately..even back when the hardware *was* sold at a loss. You have a very strange definition of failure, Tony.

Sharepoint is a billion dollar business all by itself.
SQL is unstopable, Exchange, Lync, TMG, blah blah.

Look, you're just talking out your sss.

PC sales drop 8% yet MSFT posts a 31% increase in profit...'nuff said.


By KoolAidMan1 on 4/30/2011 3:32:42 AM , Rating: 2
Absolutely. It is good to see hard facts and numbers in response to fanboy conjecture and twisting of reality.


By MadMan007 on 5/1/2011 12:28:00 PM , Rating: 3
People who make up the vast majority of PC sales don't delay their purchase based on an OS that's a year and a half away. They buy when their old one breaks.


i don't get it
By Da W on 4/29/2011 11:07:40 AM , Rating: 5
This stock is trading 10 times trailling P/E, possibly 7 to 8 times forward P/E. For starters it means the market forecast almost negative growth for Microsoft, which i doubt although yeah the PC is now a mature market. All this coupled with a nice 2,5% dividend yield which is more than good ol US treasuries (and Microsoft will still be rated AAA for years to come).

Just a comparison. Oracle, 23 times trailling P/E? What does oracle do that is so much better than Microsoft?
Nvidia is 49 times trailling P/E. Oh yeah, the market forceast explosive growth from Nvidia desktop ARM chips since Windows 8 will suppoprt ARM, but microsoft is doomed. See the logic?
ARM holding is rated at 98 times trailling P/E, which would make sence if profits trippled every quarter for the next decade. This is worst than most stock i saw during the dot com bubble.
Netflix is now at 67 times P/E, yeah of course NOBODY can set up a competitive streaming company via the Internet, it's too much damn hard to figure out.

Anyway, microsoft is a good value buy. Just don't buy too much and buy some Apple and Google too.




RE: i don't get it
By michael2k on 4/29/2011 2:08:27 PM , Rating: 1
There is in fact a very real risk that Microsoft will see negative growth, especially if Windows 8 ARM is a hit.

If an AppleTV is $99, then a similarly slim ARM powered Windows 8 business "desktop" can be $99.

So instead of a $50 license for Windows x86, it will be a $5 license for Windows ARM.

Imagine if 25% of businesses adopted such a device in the next two years. Profits might in fact halve because of it.


RE: i don't get it
By AssBall on 4/29/2011 5:23:18 PM , Rating: 2
Apple TV??? Na.... everyone will just have their LCD set up with netflix/hulu built right in, even a browser and a show storage drive, why not?

You will be surprised what Microsoft will be able to do with their ARM software too. Look at the fact that smartphones are getting almost as powerful as an Xbox (Pentium 3 power), and Microsoft has a pretty good OS for that system. Phone7 is not at all bad either.

And businesses need their workstations still, so Microsoft will probably maintain decent profits for the foreseeable future. Xbox4 due in a couple years, their developer tools and business software both sell very well, hell WinXP still sells great in other countries (though often black market style).

Their growth might not be substantial, but their profits will be fine, I reckon.


RE: i don't get it
By michael2k on 4/29/2011 7:56:38 PM , Rating: 1
How can you not see this?

The XBox was a $500 unit; a similarly powered dual core ARM unit (call it an XTV if you wish) would only cost $99, possibly $149. Apple has managed to get an AppleTV (which is identical to an iPad, HW wise) for $99.

So if HP/Dell/Lenovo manufactures a similarly small client for $99 (16gb storage, dual core A9 CPU at 1GHz), Microsoft's cut will be miniscule. There's no way they can maintain decent profits, at all; the Windows Point of Sales units can be handled by such a puny system. The Windows ATMs, the Windows secretarial units, the Windows real estate clients, the Windows actuarial and accounting clients, essentially the entire Windows install base except for those running Visual Studio, Servers, and Games, can be served by a tiny ARM unit.

And if you look at their sales, that means their Windows profits would drop drastically. From $50 per client to $5.


RE: i don't get it
By AssBall on 4/29/2011 9:45:19 PM , Rating: 2
You are making up numbers again.


RE: i don't get it
By michael2k on 4/30/2011 3:01:12 AM , Rating: 2
RE: i don't get it
By fredgiblet on 4/30/2011 3:16:19 PM , Rating: 2
You do realize taht that articel was posted in 2005 right? The hardware costs for the 360 are a fraction of that now.


RE: i don't get it
By michael2k on 4/30/2011 4:09:52 PM , Rating: 2
You do realize I said it was $500? I know it isn't now, I'm saying by 2012 they can muster Win8ARM units for $100 that would be more than sufficient for an office.


RE: i don't get it
By Targon on 5/2/2011 8:23:54 AM , Rating: 2
The hardware costs vs. software is what you fail to understand. Microsoft may have their game console business, plus keyboards and mice, but other than that, Microsoft is NOT a hardware company. Microsoft can see the ultra-portable market is growing, so it looking to take advantage of that market.

The whole move to a very small OS isn't ONLY for these devices either, but is more about "how to make an OS that is not bloated and insecure". By making the overall footprint of the OS smaller, it is far more difficult to infect, and also would allow for the OS to be locked. A big problem with MS Windows at this point is the SIZE of the thing, and that leads to a lot of inefficient code. Focus on shrinking things down, and you not only take advantage of the ultra-portable market, you also make it more difficult to infect. If the registry wasn't such a beast, it would also be far easier to find and identify things that infect the OS.


RE: i don't get it
By michael2k on 5/2/2011 11:49:25 AM , Rating: 2
What am I failing to understand?

I'm saying that with a standard PC they can net $50 licenses ($20 for netbooks) for each sold since these devices cost upwards of $300 or so.

With an ARM powered PC, and a pricepoint well below $200, they would be lucky to get $10 licenses, possibly as low as $5. So even though the market is growing, it's so low cost as to be a risk and not a positive. It's powerful enough that it could displace traditional PCs for a large swathe of the market.

You are the one that seems to miss that. If every office worker got an ARM PC for $150 (including Windows and Office for $10 each), that's the loss of a $50 Windows license and a $50 Office license. Instead of making $100 from a sale, they now make $20.


RE: i don't get it
By Da W on 5/2/2011 9:54:49 AM , Rating: 2
You compare a crap OS like iOS that can only control finger commands and launch apps with a full fledged OS like Windows. iOS/Android/Others sell cheap because they ARE cheap. Even Apple don't sell their OSx cheaply.

Microsoft sure lost their monopoly princing power, case in point. But a full Windows PC will always make so much more than a half-baked 2 cents piece of OS, this is the market Microsoft is going for. It will also run software coded in other languages than java.

Owning a smartphone myslef i begin to wonder if there is a serious app that can compare to a PC software in complexity. Sure fart machines and native app that act as a bookmark are cool, but there's a whole FUNCTIONALITY element that a don't find here.

The key for Microsoft will be if there are new things that you can do with a computer. Of course if all people do is browse the web, send e-mails and watch video then a free Android OS does the job. But then Microsoft is positioning itself to do much more. Voice/face/gesture recognition, IPTV on their Xbox (and may be on windows 8), full reworking of their Zune marketplace (which is pretty good but underapreciated) into an HTML5 web marketplace accessible from every platform to compete in the lucrative streaming market and on and on. I see a world where a phone is not enough. For extra capabilities, Microsoft can charge a premium, and then earn money on other products.

It all comes down to valuation. 10 times P/E with a 13% y-o-y growth is cheap.


RE: i don't get it
By xaders on 4/30/2011 2:58:28 AM , Rating: 2
microsoft has an image problem because they have a visionary like "Steve Job, or Larry Page" to promote their product brand. Bill Gates is retired and Steve Ballmar as a CEO of Microsoft doesnt give that & questions whether he need to step down 'rumors.'
this is like book "Microsoft 2.0" by mary jo foley & read it. microsoft is different now with the antitrust and the company no longer made of engineers and instead lawyers & becoming "big legacy!!"
some articles that cover on this;
1-(http://www.zdnet.com/blog/bott/a-closer-look-at-mi... &
2-(http://www.zdnet.com/blog/bott/how-a-decade-of-ant...
3-the podcast from (twit.tv/ww) "windows weekly" saying the same thing with divisions between department & no integration. windows/server dept. dont want input from the mobile phone/tablet dept & etc. overtime the clashing and fighting doesnt get work done. why was windows phone 7 was late & tablets in 2012 and so late.

One good example is Larry Page take back CEO & kicking Eric out because he was a business guy to help build a "public image" for google. Now, that google is big enough because google was once microsoft in the 1990s before antitrust.

id wish Microsoft well and "...if you dont change with the time, you will get leave behind..." so invest in R&D. look how apple without steve jobs and got back to redo the whole company.


This always happens
By Smilin on 4/29/2011 11:21:35 AM , Rating: 2
Find any record MSFT quarter and the stock tanks that day.

They've been setting record quarter after record quarter. The stock tanks the next day, wallows slowly upward over 3 months then tanks again next quarter.

I own GOOG, AAPL of course but really I'm enjoying the bargain price of MSFTs *dividend* paying stock quite a bit. The other two are baseball card stocks, worth only what how someone else values them. It will be tricky to know when to step of the top of those roller coasters.

And the whole "pc is dying" thing is crap:
1. Of course its going to die
2. Not today
3. So are the days of buying licenses in bulk..things will be "buy how much you use" in the cloud.
4. Microsoft saw and planned for this long before anyone else. They aren't counting on it as a long term income stream.
5. They are diversified as all get out. They have lots of cash cows and are raising new ones constantly.




RE: This always happens
By michael2k on 4/29/2011 2:14:28 PM , Rating: 2
Stocks have to tank. That's what happens when people sell for a profit.

The real problem is growth. Stock growth only occurs when investors believe that buying MSFT is better than buying AAPL. It's a classic supply/demand problem since there are only fixed numbers of stock.

So if you wanted to buy AAPL, you have to bid higher than the people selling in order to outbid the other buyers, because demand is high.

If you wanted to buy MSFT, you in fact don't have to bid higher because there is no demand.

It is very much like trying to buy an out of stock iPad vs a copiously supplied WP7.


RE: This always happens
By Smilin on 4/29/2011 4:01:45 PM , Rating: 2
Profit taking is usually seen just after a rise... "buy on the rumor, sell on th news".

In MSFTs case it doesn't seem to happen this way.


RE: This always happens
By michael2k on 4/29/2011 8:13:49 PM , Rating: 2
MSFT rose from $24.7 to $26.7 in the 10 days prior to earnings. That's enough for profit taking!

Of course the real "profit taking" occurred on Feb 4th after they announced they weren't going to push WP7 onto tablets. It fell from $28.28 to $24.7!


RE: This always happens
By Smilin on 5/2/2011 9:59:04 AM , Rating: 2
Most of that swell was due to intels earnings reports indicating PC sales were picking up. This time around (profit taking always happens to some degree) it was a dip in Windows sales that freaked investors. Next time it will be something else.

Microsoft has only posted a dip in growth during the worst of the 2008+ recession. Every other quarter/year they've posted gains or record gains.

I've no intention to sell anytime soon and I'll snatch at these low prices from time to time.


RE: This always happens
By michael2k on 5/2/2011 12:17:52 PM , Rating: 2
Really? Several quarters have dipped, even without the 2008 recession, in the last 7 years:
http://ycharts.com/companies/MSFT/eps_growth#compC...


RE: This always happens
By Smilin on 5/2/2011 1:21:32 PM , Rating: 2
RE: This always happens
By Lerianis on 4/29/2011 4:17:00 PM , Rating: 2
Sorry, but 'everything is going to move to the cloud' is bullhockey.

People don't want to have some specific things on 'the cloud' and they ESPECIALLY don't want to not be able to use their computers if their internet connection is down.

Ubisoft found that out with Assassin's Creed 2! That is why they made AC: Brotherhood with 'play offline' ability!


RE: This always happens
By KoolAidMan1 on 4/30/2011 3:30:37 AM , Rating: 2
quote:
5. They are diversified as all get out. They have lots of cash cows and are raising new ones constantly.


I disagree. As was posted above, 36% of it's profit is Windows. 41% is Office.

Tools and Server is only 18%. XBox and Zune (which they just discontinued) is 3%. Their losses? $1.8b last quarter, which is all the profit they made from Server and Tools.

Software is EVERYTHING to Microsoft, end of story. It isn't "hype" that software is what pays for their loss leaders, it is harsh reality. They can't seem to break through anywhere else. Their one hit, the XBox, is finally in the black after five years, and their one good new product with Windows Phone 7 is having a hard time against Android.

I personally believe that the whole PC is dying thing is overblown as well, but they are also missing out in the rapid growth and insanely profitable areas that Google and Apple are leading the charge in right now.


We'll just have to wait...
By MrBlastman on 4/29/2011 11:05:43 AM , Rating: 2
And see how the partnership with Nokia pans out. I'm betting it will as Microsoft has too much riding on it.

It isn't as if they don't have a mobile operating system solution. They've been leaders in it for years--it hasn't been until recently they have faced intense competition through Android and iPhone OS (yuck).

So, I think it is too early to stick a fork in them. They have tremendous amounts of net income being generated and if you really dig in, you'll notice over the last year despite there being a great deal of negative cash flow, the majority has been moving towards "investments" of sorts.

I'm willing to wait and see if they can pull it off.




RE: We'll just have to wait...
By Smilin on 4/29/2011 11:39:41 AM , Rating: 2
Don't forget that the smartphone and device market is still in it's infancy.

Nokia, Windows 8, WP 7, and all that are just tiny battles. The war will be in full swing in the days of Windows 11+.

As for the stock price: Look they don't need to raise cash. So long as it doesn't tank and they keep increasing dividents (up to 0.16 now) the investors will be content. They are also still buying up their own stock with spare cash so the bargain price actually helps them.


RE: We'll just have to wait...
By KoolAidMan1 on 4/30/2011 3:36:08 AM , Rating: 2
Android is absolute garbage. Windows Phone 7 has shown itself to be the first legitimate alternative to iOS.

It deserves to do well, we'll see.


RE: We'll just have to wait...
By mcnabney on 4/30/2011 9:54:33 AM , Rating: 2
What color is the sky in your world?


RE: We'll just have to wait...
By KoolAidMan1 on 4/30/2011 10:48:58 PM , Rating: 3
A world where people don't delude themselves into thinking that Google made a good mobile operating system.


Growth stock?
By zaxxon on 4/29/2011 11:03:49 AM , Rating: 4
When in the last 11 years was MSFT a growth stock??????

http://finance.yahoo.com/echarts?s=MSFT+Interactiv...

These analysts are themselves again (anal, that is...)




RE: Growth stock?
By AssBall on 4/29/2011 1:10:14 PM , Rating: 2
RE: Growth stock?
By KoolAidMan1 on 4/30/2011 3:40:53 AM , Rating: 2
Still a non-growth return.

Making 1%-2% a year in dividends off of a flat stock over the course of ten years (and down about 10% since January) is not a "growth", it is a dividend stock like P&G, Coke, stocks like that.

Good price if you want a divvy stock in your portfolio though, stock is pretty low so the yield is good.


Who did not know this was coming
By atlmann10 on 4/30/2011 12:10:23 PM , Rating: 2
Microsoft it seems to me. I was told personally by someone in the company several things about there strategies concerning Slate/Tablets, and smart phone strategies supposedly in place. I told them they were making a bad decision from what I could see. Of course I have been saying that for years personally.

They seem to feel they are fine where they are at, or did a couple of months ago when the information exchange took place.

Microsoft needs to have a Tablet windows out yesterday, and while they have done considerable work on there smart phone, and Slate market and interface they have not done enough.

I find it disheartening really as Microsoft as a company has generally been pretty gung ho about offering new technologies. They seem to be at best lagging in many areas for at least the last 3 years.

While they may have been fine in R&D in several sectors, with an organization as big as M$ you expect more as well as better vision for the future.

I predict if they don't get something moving, and I don't mean somewhat, I mean moving hard and fast, that they will loose share. I say that because with quad core processors, and advanced graphic capabilities moving quarterly in the mobile arena that they do not and are not covering heavy, they are at best unprepared.

On top of that they seem to be refusing to recognize this in many ways. Yes the just grabbed a big piece of Nokia which may very well help them significantly in the future. That is doing nothing for at least 12 months. That in the current market is a long time really.




RE: Who did not know this was coming
By Targon on 5/2/2011 8:25:55 AM , Rating: 2
Apple not releasing a new OS in ten years does not seem to have hurt it as a company, so Microsoft isn't doing too bad when it comes to new releases. It is fairly difficult to make significant changes to products when you need to keep compatibility with applications as well.


By michael2k on 5/2/2011 11:45:15 AM , Rating: 2
Apple updated their OS every 18m or so, released a new OS in 2001 (Mac OS X) and a second new OS in 2007 (iOS), the second of which they update three or so times a year with major improvements.

So it's not like Apple is sitting still. Microsoft released XP in 2001, Vista in 2006, and W7 in 2008, a much slower pace than OS X's 6 revisions in the last decade, or iOS's four revisions in the last four years.


Microsoft focus
By slatr on 4/29/2011 5:47:20 PM , Rating: 2
It is past time for them to focus on offering a modern version of windows for new form factors. I need an OS that is geared for new form factors such as tablets AND allows me to run my legacy X86 software.

I have so much money invested in software for windows/x86 . But I really want a tablet pc/device that is lighter than my current Fujitsu convertible and has the battery life of an Ipad.

Wishful thinking?




The Culture of Ballmer
By Mike Acker on 4/30/2011 8:17:37 AM , Rating: 2
The Culture of Ballmer is not conducive to nurturing new ideas? Just a guess based on reading Paul Allen's book.

What MSFT needs to do: market a Security Webinar detailing how to deploy Security from the Home to the Enterprise using MSFT products: UAC, Win7, Server2008, .net environment, AppLocker, Authenticode, SharePoint... &c

the Webinar must be backed up with a set of documents detailing how each component is to be installed and used. The program, properly implemented must prevent attacks that are common today.

and we have to discuss the development of MSRT into a software inventory and audit tool.

providing products people need in a timely manner is the key to growth.




Cool
By icanhascpu on 4/29/11, Rating: -1
RE: Cool
By Obujuwami on 4/29/11, Rating: 0
"My sex life is pretty good" -- Steve Jobs' random musings during the 2010 D8 conference

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