Beleaguered Microsoft

“Microsoft is dying,” Jonny Evans writes for Distorted-Loop. “It seems to offer no innovation. It’s operating systems aren’t sufficiently user-centric.”

“Look at the corporate results. Microsoft’s sales fell another 17 percent in the just gone quarter as profits slid an astonishing 29 percent,” Evans writes. “And the management – rather than self-disclosing their own inability, point to a weakness in global PC and server markets as cause.”

Evan asks, “Isn’t it truly the case that it’s a weakness in demand for Microsoft’s own offerings to global PC and server markets?”

“Compare and contrast the company’s fortunes with those of Apple in the same period,” Evans writes. “Apple’s third quarter financial results constituted the best non-Christmas quarter for revenue and earnings in Apple’s entire corporate history.”

“How does a dominant company manage to become so bad at making money?” Evans asks. “Shareholders may be curious. I think Microsoft is dying.”

Full article here.

MacDailyNews Take: Excerpts from a BusinessWeek interview with Apple CEO Steve Jobs, October 12, 2004:

Steve Jobs: 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.

BusinessWeek: Is this common in the industry?
Steve Jobs: Look at Microsoft — who’s running Microsoft?

BusinessWeek: Steve Ballmer.
Steve Jobs: Right, the sales guy. Case closed.

Source: The Seed of Apple’s Innovation

That said, our usual toast: “May Steve Ballmer remain Microsoft’s CEO for as long as it takes!”

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