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  (Source: Reuters)
Amid low share prices, Ballmer received a chilly reception from some shareholders at their annual meeting

At Microsoft Corp.'s (MSFT) annual shareholder Wednesday, the company's at-times boisterous Chief Executive Steven "Steve" Ballmer brought in Microsoft's "big guns" -- former Microsoft CEO, co-founder, and tech icon Bill Gates and Chief Financial Officer Peter Klein.  But at the meeting of 450 shareholders, Mr. Ballmer did not need to enlist the help of his fellow Microsoft elite, who remained silent even as the meeting turned chilly, according to Reuters reporters in attendance.

Amid tough questions from the audience, Mr. Ballmer was candid in his assessment that Microsoft was a late-comer to the tablet game, but he told the audience in a fiery defense that he saw "nothing but a sea of upside" for Windows 8 tablets.  He comments, "We're innovating on the seam between software and hardware.  Maybe we should have done that earlier.  [But] I feel pretty good about our [current] level of innovation."

Indeed, Microsoft has some defenders in odd places.  Stephen "Steve" Wozniak, better known as the "Woz", was once a ferocious critic of Microsoft and evangelist for Apple, Inc. (AAPL), the company he co-founded.  But today he said in a recent TechCrunch interview that he fears for Apple because Microsoft has become more innovative.

Steve Ballmer
Steve Ballmer is overwhelmed with anticipation regarding his company's
prospects in the tablet market. [Image Source: Getty Images]

Others might disagree.

While Mr. Ballmer pointed optimistically to Windows Phone sales quadrupling on a year-to-year basis, the platform is still estimated to only own 2 to 4 percent of the global market, well behind Apple and market leader Google Inc. (GOOG).  While Microsoft dreams of "pulling a Google" and rising to the top of the stack, it currently is resigned to vying with embattled Research in Motion, Ltd. (TSE:RIM) for the third-place spot.

But when it came to shareholder criticism, the harshest questions came not about Microsoft's products, but rather why its share price was so low.  Indeed, Microsoft shares trade at an order of magnitude lower than their Google and Apple counterparts.  (To be fair Microsoft has significantly approximately 9 times as many shares as Apple, and 25 times as many as Google).  Apple recently passed Microsoft in market capitalization and today has a total stock value that is more than twice that of Microsoft's.

Steve Ballmer dodged the share value question, remarking, "I understand your comment... [but Microsoft has] done a phenomenal job of driving product volumes... The stock market's kind of a funny thing."

Funny indeed, but the shareholders might have been less than amused.  Mr. Ballmer did placate the critics slightly by pointing to Microsoft's $10B USD profit sharing effort which includes share buybacks and quarterly dividends.

Currently, Microsoft shares are trading at around their levels from a decade ago, having risen roughly 18 percent in 2012.  In other words, despite the criticism, shareholders should be pleased to an extent that Microsoft outperformed the Standard & Poor's 500 average of an anemic 3 percent in gains.

Source: Reuters



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shortsighted shareholders maybe...
By Roffles on 11/29/2012 5:03:34 PM , Rating: 5
My take on this whole thing is that that Microsoft is ahead of the hardware curve with it's new operating system and it's still building up for a grand finale -- but not at this very moment in time, and not in a way that appeals to the basic consumer that is lining the pockets of Google and Apple.

1. Windows 8 OS - Complaints are coming from people who have to interface it without a touchscreen (including myself). This will obviously change over the coming years as touchscreen monitors, all-in-one's, convertibles, notebooks, ultrabooks, and tablets become more common and more affordable. Imagine having a DELL XPS one 27 with a stylus at your office desk running your business? Apple and Android have no rebuttal for a device like this...it's just a matter of time before people catch on. The stylus and the finger are going to eventually replace the mouse and relegate the keyboard to a tasking device.

2. WinPhone 8 - Microsoft is trying to build a cohesive ecosystem here if it isn't so obvious. As Win8 OS become more common, people may be looking to extend their user experience with a companion phone. It's inevitable that WinPhone 8 will gain market share as the Windows 8 OS adoption rate rises. For me personally, you will have to pry my Android phone from my lifeless hands -- but I won't stay loyal to an inferior product so I'll at least pay attention to windows phone and see how it matures.

3. Haswell - Intel's new micro-architecture coming next year will have the power efficiency and raw performance to ensure that Win8/x86 brings a full computing experience that caters to both professionals and consumers. ARM, which really only caters to consumers and subordinate professionals because of a consistent overemphasis on TDP is dominating a market that Microsoft x86 can really bite a chunk out of with intel's help -- and I see no reason why it wouldn't.

Xbox 720 - How can we forget about this? Gamers are itching for a revised Xbox. The current hardware has fallen from grace and this will be cause to stand in long lines for a lot of people. The Xbox 720 alone will make sure Microsoft is relevant in 2013 going forward.

To summarize these points, 2013 will be the year of highly portable, powerful, and efficient x86 Haswell devices running Windows8 for consumers and professionls, new and improved WinPhone 8 hardware and software and the Xbox720 -- all designed to work together. How can a stock holders be discontent with the current course?




RE: shortsighted shareholders maybe...
By bupkus on 11/29/2012 6:27:08 PM , Rating: 1
quote:
How can a stock holders be discontent with the current course?
Not sure but here goes.

1.
quote:
This will obviously change over the coming years
Do you believe Ballmer has several years more with MS? I'm not so sure, but that wasn't really your point. MS is still in catch-up mode no matter how good its new products prove to be. Sooner would have been so much better than later. Apple is so rock solid with its followers (customer loyalty) and you yourself are really solid with Android as am I with Android/Nexus-- I just got Android 4.2.1 on my Nexus 7.

2. Your position that people will be migrating from Windows 8 OS to WinPhone 8 is a failing gateway. How? So many people bypassed Apple's laptops right to their iPhone although some went from their iPod to iPad or iPhone. Yes, desktops are taking a real hit from smartphones and tablets as desktop ram prices will attest.

3. So what bone do I have to pick with Haswell? Insufficient fabrication for probably first 2 years. Why? Recent reports of Intel cutting back.* Can't find my source so I may be wrong on the cutbacks. I hope I'm wrong about Haswell. It sounds like a really great cpu and I hope I can get something new with
quote:
Haswell Inside
.
Ok, now I have got to take credit for this one before it happens.
Prediction: Haswell will be so sought after that Intel will and should place a sticky on each laptop that says just that.
Woo hoo, you heard it here first! Gonna google that...

Nuts!
http://www.maximumpc.com/article/news/what_does_in...

To post or not to post.


RE: shortsighted shareholders maybe...
By Roffles on 11/29/2012 8:06:22 PM , Rating: 2
It seems like your opinion may be slanted more towards a consumerism perspective and mine slanted towards a professional/prosumer perspective so we would have to agree to disagree.

But one thing for sure is that I picture a not-so-distant future where I may have a Surface Pro propped up on my living room table, networked to my Xbox 720 and perhaps a Winphone device would/could offer some extra capabilities beyond SmartGlass that would interface with my Surface and Xbox in a way that compels me to switch over. So I don't see a failed gateway here but more of a potential gateway. Only the future would tell -- but it seems like this is MS's end goal.

And while we have a magnifying glass on Microsoft, let us not forget about the Nexus4 with it's unacceptably low storage space, non-removable battery, non-expandable storage and lack of LTE. And the new $249 Chromebook which is essentially useless and doesn't interface intelligently in any good way with other devices in the Android ecosystem. What about the Google TV or that Nexus Q they introduced? It seems to me that it's companies like Samsung, Motorola and HTC who make great devices that keep Android's superior operating system relevant. If these companies decided to drop Android, Google couldn't stay afloat with their choice of compromised hardware.

And Apple? They've done nothing innovative as of late. I almost laughed when they introduced the new iMac all-in-ones....what with the Win8 touchscreen all-in-ones on the horizon (specially the DELL XPS one 27 that I'm currently interested in) , Apple products look outdated by comparison....proving that the Apple loyalists have more money than brains to pay for alluring boutique hardware with outdated functionality.


By bupkus on 11/29/2012 9:03:27 PM , Rating: 2
Don't be surprised but I agree with you on each and every point. I think you may have been a little harsh with Google but you were accurate.

My whole statement wasn't to praise Google or dis MS, although I wish I hadn't bought this latest Action Pack Subscription, but I digress.
Instead, I was just focusing on how timing has not served MS well. If Steve Ballmer made that call he's a little late to the party. It's like last call and he's leaving with the ugly girl.
Microsoft is facing a deeply committed customer base in both Apple and yes, even Android. If only this tablet had been released along with Ivy Bridge back in ... whenever. MS has a steep slope to climb. I don't think they'll really catch on until Haswell which will give the Surface a respectable battery life.


RE: shortsighted shareholders maybe...
By Nortel on 11/29/2012 9:40:11 PM , Rating: 3
Ok first off I completely agree that the Chromebook is a piece of garbage.

As for the Dell XPS one 27... well, it's a 27 inch iMac with touchscreen running Windows 8. That's the facts, no opinion there. What I can't see is an audience clamoring for a huge tablet anchored to a desk with typical desktop accessibility. Tablets are really good for light usage and desktops for heavy lifting. I absolutely cannot see apps coming out to take advantage of the huge resolution and people willing to retrograde from a portable tablet to a desktop.

If the desktop is meant to be taken as a literal desktop with touchscreen as an added bonus, then it's just a gimmick. HP tried a touchscren iMac like computer with Windows 7 and it bombed. Windows 8 may be very touchscreen oriented but I can't see it taking any market-share, especially with PC sales plummeting.


By nedsand on 12/4/2012 2:39:10 PM , Rating: 2
Desktops are still relevant, although less than they were before, they are still relevant. How can you call touchscreen technology a gimmick today? All good technologies were once gimmicky, take the mouse for example. TS technology has moved past gimmick stage and is or already has rushed past early adopter stage. This is going to be main stream or a standard in the not to distant future. I can imagine that within 10 years or less touchscreens will be installed in just about everything.


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