If you have taken a look at Microsoft stock lately it is 1:10 compared to apples. Can anyone think of away they can get it back up or do you think they are going to fade into the night?
Answer by Leapo · Jul 28, 2010 at 08:43 PM
I'm not sure where you get the 1:10 ratio. Microsoft's market cap is 225 billion, Apple's is a bit higher at 238 Billion.
That's a ratio of around 1 : 1.013 (extremely close to 1:1), nowhere near 1:10
Edit: Microsoft also appears to be doing just fine. Check out this article posted a couple of days ago, Microsoft posts a big quarter, tops Apple, profits jump 50%
Answer by thrashintosh · Jun 06, 2010 at 10:07 PM
microsoft still dominates the bussiness side of information systems, and if microsoft continues to take the friendly aproach to apple they have, who knows they may sit pretty for a lot longer, stocks allways varry, apples stocks are based on ipad and iphone boostings.
Answer by Granit · Jul 28, 2010 at 08:18 PM
Microsoft has been slowly withering for a long time. This is nothing new. It's like IBM and the seven dwarfs (if anyone here is old enough to remember that), IBM was huge in the industry, no one would of ever imagined them being taken down. they are still present, but only a shadow compared to what they once were.
This is a common factor of monopolies, they never do last forever and eventually new markets replaces old and outdated ones. The flaw in a monopoly is stagnation, they create a wonderful new product or innovation, sell it off, grab a large market share, and then stop, pushing all the resources into marketing. Soon you have little innovation or change and a set foundation of current users.. users who you've some how made dependent on your product. Then something like a new product comes out to challenge yours with a whole new innovative spin, even having support of assets from your own allowing users to break their dependence on your monopoly even easier.
Here's Steve Jobs' take on it during an interview with BusinessWeek:
Look at Microsoft -- who's running Microsoft?
Apple had a monopoly on the graphical user interface for almost 10 years. That's a long time. And how are monopolies lost? Think about it. Some very good product people invent some very good products, and the company achieves a monopoly. But after that, the product people aren't the ones that drive the company forward anymore. It's the marketing guys or the ones who expand the business into Latin America or whatever. Because what's the point of focusing on making the product even better when the only company you can take business from is yourself? So a different group of people start to move up. And who usually ends up running the show? The sales guy... Then one day, the monopoly expires for whatever reason. But by then the best product people have left, or they're no longer listened to. And so the company goes through this tumultuous time, and it either survives or it doesn't.
Is this common in the industry?
Right, the sales guy. Case closed.
Microsoft's golden year was 2000, their tipping point of stagnation. Since then their market value dropped from around $600 billion down to around $220 now. They're market share for Internet Explorer, who had reached close to 90% after finally beating Netscape is now down in the 50s. The Windows share has dropped a few points, but being the core business, will take much time to break down. In the mobile area, Windows has decreased dramatically. Microsoft Office is the strongest product they have now, with a good ratio of marke tshare and profit margins. They've tried a few new places with products like the Xbox, which have done well in the industry but have given Microsoft little profit. The Zune has been an utter dud at this point and has not made up for it's R&D and manufacturing costs.
Everything that is keeping Microsoft going at this point, are products that many others like Google and Apple are trying to replace. They're desktop products in a world that is shifting towards the cloud and more mobile accessible platforms.
For Microsoft to bounce back, they need to focus as much resources as they can in the mobile and cloud markets, especially with Windows Phone 7. So far, it's been given mixed reactions and many developers are a little iffy. If they can't get it together, they will crumble in the next decade, it's already happening and it will continue to collapse. I really hope they can pull it off.
Lastly, some good news. After so many years of problem after problem, the stock not moving forward, products failing.. there are strong rumors that a group of Microsoft executives are planning to oust Steve Ballmer in favor of a new CEO.
Answer by Seb · Jul 29, 2010 at 12:54 AM
Apple offers different services to Microsoft. Microsoft develops and retails software (with the exception of the xbox). Apple develops and retails software, computers, mobile phones, mp3 players, etc, etc. You really can't compare the two companies! I also agree with Leapo here. I think you need to check your math. Of course, I expect you're going to be defensive regarding your figures, because you believe you know everything about the stock market. The value of stocks may currently be 10 times more for Apple, but that doesn't mean there are as many investors. Microsoft has far more investors.
Answer by Mark Devens · Jul 29, 2010 at 01:28 AM
If they keep up with what they're doing, no.
Their best bet would be to completely wipe everything they have as far as operating systems go, and start a new one.
They're so caught up with this damn reversible os thing, it's ruining everything.
Answer by lordhead96 · Jul 29, 2010 at 01:59 AM
Microsoft is a good software and hardware company but comparing them to apple. Apple well away over come any thing Microsoft well come out with for now. If Microsoft can come back they well need to improve there ads and software and hardware but i do not thank the well. I believe that Microsoft has came out with some good software and hardware like the xbox and the xbox360.