Linked by Thom Holwerda on Tue 9th Oct 2012 22:01 UTC
Microsoft Steve Ballmer's annual letter to shareholders makes it very clear Microsoft is at a point of no return - and in the middle of a transition into a hardware company. "This is a significant shift, both in what we do and how we see ourselves - as a devices and services company. It impacts how we run the company, how we develop new experiences, and how we take products to market for both consumers and businesses." Line. Sand.
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RE: In plain English
by galvanash on Wed 10th Oct 2012 07:28 UTC in reply to "In plain English"
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"We want to be like Apple"

True enough, but who wouldn't want to be?

I'm not talking about the intellectual/tehnical/ethical stuff we usually discuss here - strictly financials. Apple makes more money than Microsoft - alot more. That is just ridiculous when you consider the vast difference in number of employees and product mix between the two companies. Its like seeing a local mom and pop brewery make more money than Budweiser...

If you look at a graph comparing MS and Apple financials over the last 5 years, in virtually any measurable metric (revenue, growth rate, market cap, profit margin) Apple's line looks like a fricken rocket ship compared to MS - and ironically that is during a 5 year period where MS has done pretty well for the most part, historically speaking.

Lots of people hate on Apple, but you cannot deny that what they are doing is working from a financial perspective...

I don't think Microsoft can NOT try to be more like Apple... Unless Apple implodes in the next few years (which I doubt), its just going to be more of the same. Microsoft's board is inevitably going to demand that the company start emulating the success of their competitor - any CEO not willing to try would get their hat handed to them.

Sure, lots of people think this is a mistake. It may well be in the long run, but that fact is that Microsoft (as it is now) might be winning battles here and there, but they already lost the war and they know it. Their future is either to beat Apple at their own game or settle in for a permanent future as number 2.

Apple IS going to start doing something with that ridiculous 100+ billion dollar war chest at some point. Think about that.

MS can't win if they don't start trying to beat Apple at their strengths...

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