There is an opportunity to go after Research In Motion Ltd (NASDAQ:BBRY) right now as well. Early reports say that sales of the Z10 device have been rather anemic and are only marginally ahead of sales of older BlackBerry devices.
Worse, a report from Detwiler Fenton indicates that several retail partners have actually seen returns of the device outpacing sales, calling it “a phenomenon we have never seen before.” If Research In Motion Ltd (NASDAQ:BBRY) is on its way out, could Microsoft swoop in and steal market share?
In the workplace, laptop and desktop computers still dominate, and the operating system on most of those PCs is still Microsoft Corporation (NASDAQ:MSFT) Windows. Surprisingly, Windows XP – a system that was introduced several years ago – still appears on most of those computers.
As that system ages, more and more companies will be forced to upgrade. That presents an opportunity for Microsoft to move users to a Windows 7 or Windows 8 platform, but it also gives companies the chance to switch to a different and competing operating system. This could be an opportunity for Microsoft to cement its position on the business and commercial side, but if it isn’t played correctly it could be the latest market segment that will see its market share begin to erode.
Far from dead
Microsoft Corporation (NASDAQ:MSFT) is far from a dead company, but with its slow response to the mobile movement and the potential to lose market share in the workplace PC space, you can begin to see a potential path for Microsoft’s long-term decline. Microsoft remains the third-largest company in the world, behind Apple Inc. (NASDAQ:AAPL) and Exxon Mobil Corporation (NYSE:XOM), but ahead of one of its primary mobile competitors — Google.
There is, however, reason for optimism at Microsoft. Apple, for what feels like the first time in ages, is actually showing signs of vulnerability. As the stock nears a 40% decline from its all-time high, the company has blamed issues with manufacturers and the supply chain failing to keep up with demand for its products.
Inefficiencies, it says, are causing the company to begin struggling to keep up with high investor demands. In a notoriously fickle market where customers have been known to quickly flip to the next “cool” product, Apple is under pressure to deliver the next big thing whether it’s potentially a mini-iPhone or something completely new.
And let’s not underestimate the absence of Steve Jobs. Many customers and employees were loyal to Jobs and his vision. If Apple Inc. (NASDAQ:AAPL) has trouble tightening up the supply chain or continuing to develop the next “it” product, it might be just enough of a window for Microsoft Corporation (NASDAQ:MSFT) to sneak in and steal market share and headlines.
Compared to Google, the fact that the company is almost as large as Microsoft speaks to its ability to capitalize on the move to smartphones, but Microsoft still has a significant market for its Windows OS and Office suite of products.
It’s just a shame that Microsoft Corporation (NASDAQ:MSFT) couldn’t have capitalized in the mobile space because that market could have been so much larger.
David Dierking has no position in any stocks mentioned. The Motley Fool recommends Apple Inc. (NASDAQ:AAPL). The Motley Fool owns shares of Apple and Microsoft.
