http://money.cnn.com/2013/04/01/investing/microsoft-windows.moneymag/index.html?iid=SF_M_Lead
Microsoft is playing catch up with releasing radically new version of Windows for the PC and tablet market last October. Microsoft continues to launch new merchandise with things such as the new Surface tablet with attachable keyboards. Windows 8 is the newest software on the PCs, but it is only run on 2.3% of desktops vs 7.7% for Windows 7 three months in. It is said that less than 1 million regular Surface tablets have sold. Roger Kay of Endpoint Technologies' is quoted saying, "Microsoft really whiffed with a strange interface for regular PCs." Windows is slowly going down it is no longer the cash cow that it used to be. Microsoft is staying alive because of all the success in the past and with its very successful programs such as Excel and Word. Although Microsoft is in no danger, but it is losing its reputation with products being produced and not being that successful. I would no worry about Microsoft in the short run, but what about the long run for Microsoft?
I don't think that a company as powerful and massive as Microsoft needs to worry about moving from a cash cow to a "dog", but it would be beneficial for them to increase spending on R&D so that they can stop playing catch up and possibly get ahead of the game.
ReplyDeleteMicrosoft is still one of the highest spenders on R&D and i expect them to be back in the game by the end of 2013 by launching innovative products. Their new operating system windows 8 has already been a massive success
ReplyDeleteI agree that Microsoft does have some cushion because of their reputation, however it could be cause for concern that their newest products are not selling very successfully. Microsoft seems to be losing market share to other companies like Apple, and in the long run, that could be very detrimental to their success if the trend continues. Though Microsoft Office is highly successful, I think that they need to find a way to increase sales of their other products or they could be in trouble in the future.
ReplyDeleteI think an important question to think about when tackling this complex topic of Microsoft's survival is, who are its competition product wise, as well as size-wise? Yes, it is true that people are making the switch away from desktop computers to other gadgets such as tablets, but clearly not enough. Microsoft has such a wide product line that slower sales of some products are cushioned by better sales of others.
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