Microsoft Misses Mobile Phone Software Cycle, Competitors Gain Ground

Strategic Insights -

Microsoft Corp. has lost ground in the mobile phone software market as its rivals Apple Inc. and Google Inc. have advanced, according to Chief Executive Officer Steve Ballmer. Ballmer acknowledged that Microsoft missed a whole cycle in mobile phone software, while praising Apple for its success and Google's Android as a real competitor. The company aims to revive growth with its own mobile phone and a new Windows mobile program later this year. In a separate development, Microsoft has announced the resignation of Robbie Bach as head of the division that sells software for mobile devices.

Key Takeaways:

  • Microsoft has lost ground in the mobile phone software market, missing a whole cycle according to CEO Steve Ballmer.
  • Apple has done a good job in advancing in the market, while Google's Android has become a real competitor, according to Ballmer.
  • Microsoft aims to revive growth with its own mobile phone and a new Windows mobile program later this year.
  • The company has announced the resignation of Robbie Bach as head of the division that sells software for mobile devices.
  • Microsoft has seen a rebound in technology spending by businesses, with developed countries showing signs of improvement in demand.
  • Business spending on personal computers has started again, according to Microsoft CFO Peter Klein.
  • Any economic problems in Europe will have a ripple impact elsewhere, according to Ballmer.

Statistics:

  • Microsoft shares have fallen 12 percent this year.
  • The company's shares rose 40 cents to $26.86 as of 4 p.m. New York time on the Nasdaq Stock Market.

Sources:

  • Microsoft Corp.
  • Steve Ballmer, Microsoft Corp. Chief Executive Officer
  • Peter Klein, Microsoft Corp. Chief Financial Officer
  • Euclid Infotech
  • Contify.com