“Most of us are somewhat familiar with some form of The Infinite Monkey Theorem, which whimsically postulates that if you have an infinite number of monkeys, banging away on an infinite number of typewriters, over an infinite amount of time – eventually those monkeys, fingers flying, will accidentally produce the works of William Shakespeare,” Bill Shamblin writes for Seeking Alpha. “With this in mind, let us turn our attention to Microsoft’s (MSFT) level of spending on research and development (R&D) for the past 5 years and compare it with its competition, in particular Apple (AAPL).”
Five Year R&D/Sales in %
“Based on Microsoft’s stunningly high R&D spending levels, shareholders very well might be wondering why there have been no company announcements of amazing new products: Where are the personal jetpacks and flying cars, Redmond?” Shamblin writes. “Instead, owners of Microsoft stock have had to be satisfied the last decade with a predictable flow of slow-second offerings from the company, most recently: Window’s 8 OS (compare to iPhone 2007 launch with iOS) and the Microsoft Surface tablet (compare to iPad 2010 launch).”
Shamblin writes, “Microsoft bulls will point to the company’s success with the Xbox gaming console as some proof of R&D success, but despite strong sales in the segment, [operating income of just $600 million in FY13] (source: Microsoft) shows the small impact that Entertainment & Devices makes to the company’s bottom line. (In contrast, the Apple mobile business, launched in 2007, now contributes more revenue to Apple than all of Microsoft’s businesses combined.)”
Read more in the full article here.
MacDailyNews Take: The Infinite Monkey Theorem. No wonder Monkey Boy says, “I like our strategy, I like it a lot.”
[Thanks to MacDailyNews Reader “Mr. Nugget” for the heads up.]