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Radu Haraga
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I have been working for all my professional life (more than 10 years now) in finance for American and UK companies. I could say I saw them all - how it is for a company to live cash rich or strapped, how to grow or how to shrink your business, how are the investments decisions taken... My... More
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  • Microsoft Trying To Do It Right - Windows 7 Phone Series 0 comments
    Feb 16, 2010 4:19 PM | about stocks: MSFT, GOOG, APL

    As usually, Microsoft counter-attacks two of its arch rivals - Apple and Google. It was the time. How much longer do you think Steve Balmer and the folks could have stayed quiet, watching these small companies turned larger than itself launching such yammy operating systems? Not long enough without Microsoft wishing a piece of the pie.
    Microsoft announced in Barcelona the soon-to-come launch of its Windows 7 series of mobile phones OS. As we all noticed, the Windows Mobile operating system (OS) failed previously to make its way as a software platform for the modern mobile phones. So why not try with the hardware? Especially when there's the glimpse of actually selling something (Windows Mobile was free and only the applications costed ... except that nobody bought any applications from Microsoft).
    Now there are 2 scenarios. One is that the new mobile phone OS will be a rocketing success, simillar to XBox and helping maintaining the current (pressurized) share price. The presentation shows some nice features on the new phone, such as the ability to play on the XBox platform or dynamically changing icons. The question is will the audience want a super-trooper-oversophisticated piece of software where you can dial from Excel and take pictures with MS Word?
    Second scenario is that the Windows 7 series will be a flap. Paradoxically, I think this would be a no big deal moment for Microsoft. They failed before and they realized that in order to grow you must fail from time to time. If you don't try, you don't gain. So the new launch presents high upside stakes for Microsoft and little downside costs, especially in this market where making a new handset type is within the range of any Chinese electronics furnace. So, will it be a success?
    In any case, it will draw attention to Microsoft. And this might be all it needs.

    Article written with documentation from www.zacks.com.

    Disclosure: No positions in the stocks mentioned

    Stocks: MSFT, GOOG, APL
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