“A top hedge fund manager said Tuesday that Microsoft has a business model that makes it a better company than Apple for the long-term,” Maureen Farrell reports for CNET.
“Jeffrey Ubben of ValueAct made the comments at the Value Investing Conference in New York. Ubben’s firm announced a $2 billion position in Microsoft earlier this year and is thought to be a driving force behind CEO Steve Ballmer’s decision to retire as well as Microsoft’s new stock buyback and dividend increase announced earlier Tuesday,” Farrell reports. “Ubben said he likes that Microsoft charges a lot of money, makes a lot of money, and has enterprise contracts that will last for years. He noted that Microsoft is ‘in the plumbing’ of big corporations.”
Farrell reports, “By contrast, companies like Apple and Samsung, which cater more to average consumers, have to keep churning out new products every few months even if changes are incremental. Ubben refused to discuss his stake in Microsoft in greater detail, saying his hedge fund and Microsoft ‘are in the middle of stuff.’ ValueAct should play in even more active role in deciding what’s next for the company. Microsoft offered a board seat to ValueAct president Mason Morfit in late August.”
Read more in the full article here.
MacDailyNews Take: iCal’ed.
[Thanks to MacDailyNews Readers “Fred Mertz” and “David E.” for the heads up.]
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It’s easy to see how the wheels can come completely off the MS bus. People are routinely dissatisfied by the experience and tvere is business pressure from literally everywhere.
But I know of no one who owns apple products dying to switch to something better. Well, that is unless you include the next apple product as something better, or free loading people who want to download torrents of movies straight to their tablets/phones.
OMG! Where do they come up with these people. What a complete joke.
What a bullshit… ? I don’t think so. Windows 8 and surface totally crap. Please solve the back logs before talking about long term changes …
The hedge fund manager shorted Microsoft.
Why R U Posting?
Apple in my eyes is very much consumer centric company that dips its toe in the business market. I really don’t think they want to dominate any market so to speak. Apple is about making a nice profit on their products and not really into market share. I think Tim Cook is ok with not everyone having an iPhone or a Mac. However, those who do will spend the money to own the better quality products will pay the extra money. I mean you don’t see BMW trying make a car for under $15,000.
Why better ? Coz Microsoft earns much less than Apple , it is easier for Microsoft to grow .
What drugs is this guy on. Oh that’s right Ballmer cocaine.
I hear that fellah Mitt Romney is looking for a new job. I think he would be a perfect match for Microsoft.
Time to take a chill pill man, don’t you know the war is over?
“For Apple to win, Microsoft doesn’t have to lose” – Steve Jobs.
For the growth sake , Microsoft is easier to grow as it takes 10 years to earn what Apple earns one year .
Dude kind of has a point.
Microsoft is a terrible company with bad style, ridiculous leadership, and horrible products. But could one say the same for many big companies (mainly outside of tech) such as the petrol companies or contract and construction firms? I dunno.
Apple is focused on creating the best products possible and improving the world in the areas in which the operate. Thank god for that.
Microsoft has no such motivation. Nothing standing in the way of them focusing 100% on money. Which is what greasy hedge fund guys like.
And yeah, Microsoft got themselves into the pluming of corporations. What a horrible place to be, but there they are. And they wring a lot of money out of that position. They can probably wring more. And this may be one of the big reasons Ballmer is out. Microsoft was chasing too many shadows, like tablets, phones, music stores, retail stores etc. And not doubling down on their real, almost unassailable, strategic position.
So yeah, this guy is probably onto something.
Is he putting out FUD to boost his earnings? Should the SEC look into this?
Microsoft has a business model that makes it a better…
😆 😆 😆 😆 😆 😆
By contrast, companies like Apple…, which cater more to average consumers
STOP IT BEFORE I PEE MY PANTS!
😆 😆 😆 😆 😆 😆
The name of Jeffrey Ubben, who works for ValueAct, shall live on forever in infamous HILARITY!
😆 😆 😆 😆 😆 😆
Jeffrey Ubben
ValueAct
Jeffrey Ubben
ValueAct
Jeffrey Ubben
ValueAct
Jeffrey Ubben
ValueAct
Jeffrey Ubben
ValueAct
😛
Jeffrey Ubben 😆
Ok, enough of that rubbish.