When the iPhone was launched, Microsoft’s CEO Steve Ballmer laugh at the price tag, ‘missing entreprise features’, and how it will not gain significant market share.
Here’s the YouTube video to show:
Fast forward to 2011 (and we are already in Q4 2011), let’s just take a look at how MSFT performed over the last few years (from 2007)
$MSFT Ichimoku Weekly Chart:
– Peak of $37.50 during the 2007 bulls market
– Consolidating in tight range of $26 in 2011
– Doesn’t suggest growth to me.
$AAPL Ichimoku Weekly Chart:
– Towards end of 2007, Apple was trading just below $200
– I recalled, a few months earlier in 2007, when iPhone was launched Apple was trading below $100 around $80.
– Today, Apple is trading above $350; it was $400+ just a few weeks back.
– Apple now has iMessage. More than 90% of Fortune 500 are testing iPhones (and probably iPads) within the company.
But, what does all these shows? It shows the momentum that Apple has.
It also shows the lack of momentum Microsoft is in. Microsoft is still able to the next big OS. However, what they are lacking is translating that into something bigger.
The device market is a story from the past. With Apple setting the standards, people expect good industrial design, and great choice of applications from their smartphones or tablets. Once the entreprises start supporting iPhones or iPads, it will be a much tougher market to crack for the competitors; RIMM, MSFT, HPQ.
Without any of these, it is going to be an uphill battle. For now, Google is holding well with their Google Apps. But, it seems Steve Ballmer has his mindset stuck in the ‘features’ war and MSFT is a huge ship trying to turn.