Microsoft Facing Uncertainty
It’s been a good news-bad news week so far for Microsoft.
On the positive side, the company announced a launch event for its Windows Phone 7 line of products, to be held on October 11. Windows Phone 7 devices are expected to be released next month.
Within twenty four hours, Microsoft’s news had soured somewhat. For the first time in years, Internet Explorer, Microsoft’s web browser, saw its market share drop below 50%. At the same time, Google’s Chrome saw continued growth, tripling its market share from the same time last year.
Windows Phone 7 and Internet Explorer both represent the crossroads Microsoft has found itself at. Just this week major investment firm Goldman Sachs announced that it had lowered Microsoft’s expected earnings figures 3-4% over the next several years, and changed its recommendation on company stock from ‘buy’ to ‘neutral’.
Included among Goldman Sachs reasons were stagnated or decreasing growth, lack of presence in mobile and tablet devices, and concerns over the company’s long range viability.
The smartphone and web browser markets, along with tablets, are key areas for Microsoft over the next few months. The failure of the KIN mobile phone and the inability of Windows Mobile to significantly compete with Apple’s iOS or Google’s Android has left Microsoft far behind the competition in the mobile device arena.
With that market set to be among the most significant tech markets over the next five years, Microsoft needs Windows Phone 7 to succeed and succeed quickly.
The decline of Internet Explorer also speaks to the increasingly segmented tech market, and the ever weakening grip Microsoft holds in areas it once dominated.
As little as five years ago, Microsoft controlled a 90% market share in web browsers. The precipitous decline of IE – one of Microsoft’s flagship programs -is viewed as a significant cause for concern.
Just as it revamped its mobile offerings with Windows Phone 7, Microsoft made significant changes when it released IE 9 as a beta offering last month, turning the browser into one much more inline with offerings from Google or Mozilla. The changes have garnered primarily positive reviews and the demand for the beta was quite high.
Once the dominant tech player, Microsoft now finds itself facing significant questions and industry concerns. To allay the worries of the financial sector and investors, Microsoft needs IE 9 to stop the browser bleeding and Windows Phone 7 to make it a credible competitor in the smartphone market.
With Windows Phone 7’s release and IE 9’s continued beta rollout, Microsoft is hoping the next month features far more good news and far less bad.
About RESCUECOM:
RESCUECOM provides computer repair and computer support, 24/7: Meeting every tech support need including data recovery, virus removal, networking, wireless services, and computer support for all brands of hardware and software. For computer support or information on products, services, or computer repair, visit https://www.rescuecom.com or call 1-800-RESCUE-PC.
For More Information, Contact:
David Milman, CEO
315-882-1100
david@rescuecom.com
Filed under: Uncategorized