“Microsoft Corp. Chief Executive Steve Ballmer was unperturbed a day after rival Apple Inc. shot past his firm as the world’s biggest tech company by market value and said his aim was to develop a good product line and earn more profits,” Devidutta Tripathy reports for Reuters.
“Microsoft stock is down 20 percent from 10 years ago, while shares of Apple are worth more than 10 times what they were 10 years ago, as it has profited from revolutionizing consumer electronics with its stylish, easy to use products such as the iPod, iPhone and MacBook laptops,” Tripathy reports. “Ballmer, on an Asian visit, told reporters in the Indian capital that Microsoft is the most profitable technology firm and a fierce competitor to anyone.”
MacDailyNews Take: For how much longer he can claim to be “most profitable,” Ballmer didn’t say, of course. Of course, anyone who can do basic math can see that it won’t be much longer at all.
Tripathy continues, “‘My focus is on … what we should be doing to our product line, where do we go, how do we make products more innovative,’ he said in response to a question on Apple racing past it in market value.”
MacDailyNews Take: How can Microsoft become more innovative when they’ve never been innovative? They take or buy other firms’ ideas, dump them into a festering, moribund, stifling bureaucracy, then shit them out scrambled onto ignorant or trapped customers. We now return to Ballmer’s Fantasyland, already in progress…
Tripathy continues, “Ballmer said. ‘We are executing very well and that is going to lead to great products and great success.'”
MacDailyNews Take: Is Steve Ballmer, a) stupid; b) delusional; c) insane; d) the recipient of the luckiest dorm assignment in history; or e) all of the above?
Tripathy continues, “‘I am optimistic,’ Ballmer said.”
MacDailyNews Take: The answer is “e.”
iPhone, iPad, and iPod touch users, to watch the video, tap: Microsoft CEO Steve Ballmer laughs at Apple iPhone
Tripathy continues, “Robbie Bach, head of Microsoft’s video games and mobile phones unit, is retiring in a management shuffle, as Ballmer tightens his grip over a division steadily ceding ground to rivals. The departure of the 22-year veteran, credited with launching the Xbox in 2001, comes as Microsoft’s mobile efforts are being brushed aside by Apple’s iPhone…”
MacDailyNews Take: Never mind the iPhone, Xbox is a money pit that has never been profitable for Microsoft. Bach was a spectacular and consistent failure. That he lasted two decades in his job speaks volumes about Microsoft’s management or, rather, lack thereof.
Tripathy continues, “From July 1, the two senior vice presidents in charge of games and phones will report to Ballmer. ‘I won’t predict some massive change,’ Ballmer said. ‘I don’t sort of foreshadow any change in direction. We just have to accelerate plans.'”
MacDailyNews Take: Absolutely clueless.
Full article here.
Jai Krishna, Romit Guha, and Dhanya Ann Thoppil report for The Wall Street Journal, “Since Mr. Ballmer took over from Bill Gates as CEO in January 2000, Microsoft’s market value has more than halved from $556 billion to Wednesday’s close of $219 billion. Rival Apple’s market value has surged from $15.6 billion to $221 billion over the same period.”
Krishna, Guha, and Thoppil report, “Mr. Ballmer said he remains unfazed despite Apple assuming the position of the technology king. ‘I will make more profits and certainly there is no technology company in the planet which is as profitable as we are,’ he said. ‘Stock markets will take care of the rest,’ he added… Analysts attribute the value-decline at Microsoft to its inability to capitalize on new technologies such as wireless and digital music at its entertainment division. Apple’s success with its iPod and the iPhone came at the expense of Microsoft’s efforts in those areas… Despite being an early entrant into mobile devices such as smartphones, with its Windows Mobile operating system for handsets, it is now lagging behind cutting-edge technologies of Apple’s iPhone…”
Full article here.
MacDailyNews Take: Please, please, please, may Microsoft shareholders remain unconscious (chances are good as they seem to like a return on their investment that amounts to little more than a rounding error) so that Steve Ballmer can remain Microsoft CEO for as long as it takes!
Also, the reason MS pays dividends is they think the investor can do a better job using that money than Microsoft can.
Warren Buffet expects companies that can use retained earnings to grow more effectively should keep it, invest it and manage it. If they can’t do that, they should return the money to shareholders via dividends or even better (tax wise) by buying back stock.
I’m sure Jobs has a really good idea on how to use that $40 billion plus in cash…
While I dislike M$ as much as any sane person, I have to admit that they are still making a boatload of cash.
Their monopoly with windows and office will provide them with a cash cow for several more years.
To be honest, if I were in Ballmer’s position (but hopefully not as ugly) I probably wouldn’t care less about Apple’s rise in success. M$ doesn’t have to do anything different and they will still make money in the short term.
When things start going south, Ballmer will simply retire with more money than his chubby little hands can handle.
It’s sad but true. At least there is a chance that M$ will sink deeper and deeper with Ballmer in charge.
It’s nice to replay that Ballmer video every so often. I like Microsoft’s strategy. I like it a lot.
This is one of the only things most of us here agree with Ballmer on. We like his strategy also.
Microsoft: ‘Death of an Icon’
Personally, I think the Apple board of directors should offer to pay Ballmer’s salary ad nauseam.
Apples Gain is MS’s gain…
seeing as the most popular software for Mac is MS Office…
Bobby Mac said: “Apples Gain is MS’s gain…
seeing as the most popular software for Mac is MS Office…”
May I assume the words “third party” should have been in there somewhere? Every Mac comes with iLife and/or iWork. Not every Mac is burdened with M$ Office – unless you are counting the Demo version provided free. As more people become familiar with iWork, fewer will feel inclined to waste their money on M$ Office – though there will be many who actually need Word or Excel to get through the week.
According to Ballmer: “Microsoft is the most profitable technology firm and a fierce competitor to anyone.”
Uhm hmm… Sounds a bit like North Korea’s rhetoric as they brag about “crushing the traitors under the mighty resolve of [yadda yadda]…”
I hope Microsoft’s Board of Directors keeps the bald ape in power.
When things start going south, Ballmer will simply retire with more money than his chubby little hands can handle.
Let’s hope he doesn’t do like Paul Allen, and become an inept pro sports team owner.
I used to think that the comments that come from Microsoft’s leadership were just PR-speak, in the language of press releases. But during the last few days, as I read the comments from Allard, Bach, and now Ballmer, I’m coming believe that Microsoft’s leaders actually believe that what they say publicly is true.
It’s even more clear that in order for Microsoft to become relevant again, ALL of their current leadership must “retire” and be replaced with reasonable people who see Microsoft realistically, as the rest of the world sees it. They may still make profit now, but if they continue under the delusion that nothing is wrong (and they are still the king of tech), the Windows/Office cash cow will steadily disappear during the next five to ten years and they will be left with nothing to turn things around.
You have to believe that the symbolic event of AAPL surpassing MSFT in market cap will remind shareholders how poorly Microsoft has executed during the last ten years. How much more will it take for the leader at the top to be replaced? Is this some ploy by Bill Gates to make “comeback” a few years from now when things get really bad (copying Steve Jobs once again), in an attempt to miraculously save the company he founded and be worshipped as a hero and genius?
The problem for MS now is that their earliest employees optioned out at high share prices (made a lot of millionaires), their upper & middle managers now have options with a strike price at higher than current price. Not much of a motivation for these enterprise value drivers.
Perhaps the new hires will have some upside.
Those stock options are a huge “ball and chain” around the ankles of many frustrated Microserfs – too unhappy to work hard, and too afraid move on and give up under-performing stock options.
Wow, Ballmer is showing major signs of losing the battle. “We’re still the most profitable” line is his last stand… He’s not doing anything to increase profits really, they are going to be the same as usual for a while, then decline if anything.
Meanwhile, we’ll see Apple’s increasing like crazy every quarter… What’s he gonna say when Apple becomes more profitable? “We’ve got a bigger market share”? Doesn’t matter!
I think Ballmer is a mole planted by Apple years ago. He was activated for Vista and has been doing a fabulous job ever since.
Without the rent-collecting power of the Window OS and Office suite, Microsoft would be in deep waters.
Microsoft has not innovated for a long time but has used its monopolistic leverage to kill off competition, either through buying the competitor and killing off its promising technology; entered into alliance with others in order to learn their secrets and then became a renegade of the alliance; announcing vaporwares to frighten off would-be competitors.
The tech wasteland under the Window bandwagon is the contribution of Microsoft. Promising companies such as Dell, Compaq, HP, etc became lazy and complacent and were afraid to take risks. They have to be led by Apple to act. In the meantime, Microsoft has its fingers into every pie and would jealously exclude all competitors. It became a patent rent-seeking entity.
ALL OF THE ABOVE!