Microsoft’s mobile future questioned

Barclays Capital’s Israel Hernandez has cut his price target on Microsoft from $35 to $32 due to concerns the company has not done enough to secure a post-PC future.

Hernandez wrote: “We view the mobile/tablet/smartphone market as a strategic imperative for Microsoft, not so much for the immediate revenue opportunity but more so because of the potential competitive impact on the core Windows franchise over the long term…In our view, the inroads that Apple and now Google have made with smartphones and tablets have created a scenario whereby a new generation of consumers is increasingly looking beyond Windows for their basic computing needs, especially with more and more content and applications available in the cloud and accessed through a browser, obviating any need for a Window-based machine.”

He was not particularly impressed by the recent re-org either, feeling Ballmer has never shown any particular instinct for mobile computing.

He felt even Windows Phone 7, despite rave reviews, did not go far enough to create revenue upside for the company, due to low per unit income, and believed the whole unit should be dismantled, leaving Microsoft to focus on web and cloud services, and on its ‘post-Windows’ OS Midori.

Read more at Re-think Wiress here

Is he rights and has Microsoft missed the mobile boat? Let us know your opinion below.

Some links in the article may not be viewable as you are using an AdBlocker. Please add us to your whitelist to enable the website to function properly.

Related
Comments