Follow-up: Why the Future of Microsoft Doesn’t Appear Promising

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Earlier this morning, I published a story about how the outlook for Microsoft looks rather dismal heading into the months and years ahead. Unfortunately, it was sloppy journalism. I’ll admit that. I’m a college student that occasionally writes on the fly, so sometimes my opinions get mashed into an indecent article with inadequate factual information to back up my points. So, if you will allow me, I will give it another shot.

Let me begin with the decline of the PC market, highlighted by plummeting sales and shrinking profit margins. Most analysts predict that the situation is only going to get worse, simply because PCs are becoming too good these days for consumers to merit an upgrade. Moreover, traditional PC sales are being hindered by the increasing market share of Macs and gradual shift towards the adoption of tablets over full-sized laptops.  (more…)

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The Future Doesn’t Seem Very Promising for Microsoft

Microsoft's attempt at tackling the tablet industry with the Surface, pictured above, has been largely unsuccessful.

Microsoft’s attempt at tackling the iPad with the Surface tablet has been largely unsuccessful.

The decline of the PC era is only going to get worse, analysts predict. Netbook sales are being cannibalized by tablets, namely the iPad. Microsoft’s own Surface tablet has been largely unable to make even in a small dent in the tablet market. And even Windows Phone has been largely an aside, with significantly smaller market share over the likes of iPhone and Android-powered smartphones.

The future doesn’t look all that promising for Microsoft.

And, perhaps worse, the company is not cool anymore. Apple is cool. Samsung is cool. Microsoft? Not so much. Perhaps the Redmond-based corporation should start from the top, and seriously evaluate how effective Steve Ballmer has been in his chief executive position at Microsoft. After all, he is highly-regarded as the worst CEO of any major corporation. But, in the meantime, it could be a bumpy road for Microsoft.

How do you think Microsoft will fare in the months and years ahead?

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Report: Microsoft Working on ‘iWatch’ Competitor

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There has been a lot of talk lately about wearable products, ranging from the so-called “iWatch” to Google Glass. Yet, none of these products have yet to hit the market. Okay, maybe Pebble. But that’s about it. But, while we’re still speculating about wearable devices, the Wall Street Journal reports that Microsoft is also working on its own watch-like product that may or may not actually materialize.

Citing unnamed supply chain sources, The Journal claims that Microsoft asked Asian suppliers to ship components for the device. If the reports are true, Microsoft would be joining the likes of Apple, Samsung, Google, and others looking to capitalize on a forecasted boom in wearable electronics.

It seems like the latest craze in the consumer electronics industry could be wearable technology, with Google Glass just around the corner and Apple rumored to be working on the purported “iWatch” for release in the foreseeable future. But, one must consider how successful Microsoft would be in expanding into this product market, after its rather poor attempt at tackling the tablet game with the Surface slate.

[WSJ via The Verge]

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Rumor: Microsoft Office Launching on iOS, But Not Anytime Soon

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Rumors surrounding the launch of Microsoft Office on iOS have been gaining traction over the past several months, culminating with a new report from highly-connected Microsoft watcher Mary Jo Foley for ZDNet that claims, based on a reliable source, the Office suite could gain iOS and Android support by Fall 2014.

Foley writes:

Also on the roadmap for fall 2014 is what’s listed as iOS/Android support for Office. One would assume this is the expected and widely rumored Office for iPad release. It could, however, be Office for iPhone and Android phone, given that it’s not listed on the roadmap as being tablet-specific.

One potential reason for the delay of Office for iOS could be the revenue sharing model that Apple imposes on all third-party apps. Microsoft apparently isn’t too pleased with giving Apple a 30 percent cut on sales of its Office suite for iOS devices, so there has essentially been a standoff.

Would you use Office on your iPhone or Android smartphone?

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Report: Microsoft to Unveil Next-Generation Xbox in May

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Microsoft is rumored to announce its next-generation Xbox console at a press conference on May 21st, according to blogger Paul Thurrott. The date was corroborated by The Verge just moments later. The Xbox 720 was originally slated for unveiling in April, but the special event will now fall just a few weeks prior to the E3 gaming conference in June, where full details surrounding the console are expected to be announced.

The release date of the Xbox 720 is expected to occur later this year, prior to the holiday shopping season. A refresh to the Xbox console has been long-anticipated b gamers, but the Xbox 360 remaining the top-selling console for several months in succession has put little pressure on Microsoft to follow through with the next-generation system.

[BGR]

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Windows 8′s Built-In Applications to Receive Updates

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Windows 8 shipped late last year to mixed reviews. Most people enjoyed the performance gains, though the duality of the operating system was perplexing for many as well. Another issue was the relative lack of features in the stock applications that shipped with Redmond’s shiny new OS. It was assumed, however, that those applications would soon be updated.

According to Mary Jo Folley on her ZDNet blog, those updates will arrive for both Windows 8 and Windows RT, despite the latter’s poor performance in the computing market. It’s unclear what exactly will be included in these updates, though new features and better performance are likely.

[ZDNet]

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Microsoft Attacks Galaxy S III in New TV Advertisement

In a rather peculiar marketing move, per usual, Microsoft has decided to attack the Galaxy S III in a new TV advertisement. The spot features a Microsoft representative that convinces two customers, who the company ensures are not paid actors, that they’ll like the Nokia Lumia 920 better than the Samsung Galaxy S III.

In fact, he offers the couple $100 if they still like their Galaxy S III better. But after having just one photo taken of them with the Lumia 920, and realizing that the camera is superior, the couple is sold. They make the switch to the Lumia 920. I’d have taken the $100 cash and used it to upgrade to the Galaxy S4. But that’s just me.

[BGR]

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The Microsoft Surface Was So Last Year

Blue Microsoft Surface

Let’s take a brief moment to look at Microsoft Surface sales. Or, lack thereof. According to a Bloomberg report, citing people familiar with the matter, sales of the first two Surface tablets currently on the market have fallen short of expectations, with just 1.5 million devices moved.

Microsoft has sold little more than a million of the Surface RT version and about 400,000 Surface Pros since their debuts, according to three people, who asked not to be named because sales haven’t yet been made public. The company had ordered about 3 million Surface RTs, they said.

While the Surface is overpriced and falls short of the iPad, which was purchased 22.9 million times last quarter alone, one underlying reason for its poor traction has been ineffective marketing. While it might have amazing commercials, the marketing for the Surface has been taken in the wrong direction. (more…)

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Nokia Thinks Windows Phone Can Be Bigger Than Android, iOS

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Android and iOS continue to dominate the mobile space, controlling up to 92 percent of operating system market share, but Nokia CEO Steven Elop believes that Windows Phone could eventually top both platforms. He shared those thoughts with Bloomberg in a recent interview at Mobile World Congress in Barcelona:

“The first thing to recognize is that we selected Windows Phone as our platform so that it would be a key point in differentiation. So while there are many vendors doing many things with Android, and it’s hard to tell a lot of that apart, we stand on our own in terms of what we’re doing with Windows Phone. [...] It can be the biggest operating system in the world. We have a lot of work to do jointly with Microsof to make that happen.”

(more…)

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Microsoft’s Skype Purchase is Paying Off

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The $8.5 billion purchase of Skype is starting to look fairly priced for Microsoft. According to Bloomberg, Microsoft’s Skype unit is reaching $2 billion in annual sales. Skype at the time of acquisition in 2011, had annual sales of $800 million.

However, Microsoft’s own enterprise communication solution–Lync, is lumped into Skype’s department. The Bloomberg report did not mention what percentage of sales Skype and Lync generate separately.

Lync is Microsoft’s homegrown enterprise communication tool and has existed prior to the purchase of Skype. It’s one of the premier internet telecommunications for enterprise competing with Cisco Systems. Out of the Fortune’s 100 companies, 90 rely on Microsoft Lync for their internet telecommunication solution. Lync currently has over 5 million users. (more…)

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