With Microsoft Corporation (NASDAQ:MSFT)’s Windows 8 flop and the firm’s restriction on gamers in its upcoming Xbox One release, it looked as if the company couldn’t get more bad press. But then along came the new Microsoft Office Mobile for the iPhone.
If the company continues down its current path, it could become as obsolete as International Business Machines Corp. (NYSE:IBM) was in the 1990s. In the company’s latest flub, Microsoft’s Office Mobile doesn’t follow basic file compatibility, said CloudOn’s chief executive Milind Gadekar. It should be noted, however, that CloudOn is the rival to Microsoft Corporation (NASDAQ:MSFT)’s Office Mobile, so there is some bias in his opinion. Gadekar did admit, however, that the software is superior to CloudOn in its offline capabilities.
What the bad press means to Microsoft
Microsoft Corporation (NASDAQ:MSFT) continues to shoot itself in the foot at a time when the company is trying to re-brand itself. The company has also faced criticism for the limitations it has put on users of the November release of the Xbox One. Already, the company said people can’t give games away to friends more than once, and the person that receives the gift has to be a friend for at least 30 days. Furthermore, the company’s Windows 8 operating system was considered user unfriendly due to confusion among users.
Having analyzed the user-unfriendliness of Microsoft’s recent products and determined that the company is missing the target, you may consider selling Microsoft Corporation (NASDAQ:MSFT). However, taking a look at the firm’s financials, the company is financially sound. It has steadily increasing revenue, up 26% in the last four years. I would be careful, however, due to the company’s decrease in net income, which fell by 36% from 2011 to 2012 ($23 billion to just under $17 billion).
What the bad press means for Apple
Apple Inc. (NASDAQ:AAPL) is the cooler computer brand and has lambasted the Microsoft operating system. Apple has its threats from other sources, but the company shouldn’t be worried about Microsoft Corporation (NASDAQ:MSFT). Apple Inc. (NASDAQ:AAPL) is still the go-to product, but it is facing a run for its money from Samsung, and others who are attempting to secure the developing world market for smartphones.
Other dangers could put a dent in Apple’s market dominance and, as a result, its bottom line. The company has increased revenue by nearly 365% since 2009, and net income has soared by about 460%, showing that the company isn’t just putting out amazing products that sell, but that it is doing so very efficiently. However, I suspect that the company has peaked, and market dominance will wane in the years ahead.
What the bad press means to Sony
Sony Corporation (ADR) (NYSE:SNE) stands to make a massive profit from Microsoft’s blunders in the pre-release to each company’s consoles. The Microsoft Xbox One is slated to be released in November, with the Sony PlayStation 4 set to come out sometime around the holidays. While sales of each company’s previous consoles were neck-and-neck, the next releases are likely to be dominated by Sony Corporation (ADR) (NYSE:SNE) because of that company’s user-friendliness. Sony has cited Microsoft Corporation (NASDAQ:MSFT)’s restrictions and said that its gamers will have more freedom.
