

  (Source: Nokia)
Signs of recovery raise hope among investors




Nokia Lumia 920







Sources: Nokia [Q4 2012], [Q4 2011]

Comments     Threshold


RE: That's good news
By Tony Swash on 1/11/2013 6:00:27 AM , Rating: 0
How can my comment be construed as 'hating"? All I am trying to do is point out some of the strategic problems created for Microsoft by the shift from PCs to mobile devices. Does anybody claim that Microsoft has been a success in the mobile space? If I look out of the window and say 'it's raining' does that make me a sunshine hater?

Sales of mobile devices using a Microsoft OS have been tiny but a deeper problem is that even if Microsoft could sell tens of millions of Windows powered devices each quarter they will make a very small fraction of the sort traditional revenue and profit rates that they used to make selling PC OS and Office licences. And while they struggle to come up with a strategy that can both generate volume mobile sales and a decent rate of profit the mobile revolution eats away at their existing business and source of their profits.

I think that all of Microsoft's previous experience has ill prepared them for the current challenges and makes them respond in clumsy and ineffective ways and that will probably continue until there is an entire replacement of their top management. It is additionally unfortunate for them that they have as CEO not only someone almost completely lacking the skills and instincts to deal with the new challenges but also someone with a huge share holding in the company and one of the founders of the company. If Ballmer was just an ordinary CEO they would probably have dumped him a long time ago. The longer they drift in denial the deeper the hole will become.

Even people who love Microsoft are saying the same thing.

