Can Microsoft Corporation (MSFT) Turn Cool Into Profit?

Page 1 of 2

While there can be no question that a part of what has driven Apple Inc. (NASDAQ:AAPL)‘s monumental success has been the quality and innovation of its products, it’s also been fueled by the perception that Apple is cool. By creating a mystique that makes it the aspirational brand in technology, the company has created a rabidly loyal fan base that is not to be trifled with. A recent study conducted by Buzz Marketing Group as reported by BGR suggests that the tides may be shifting.

At the other end of the cool spectrum, Microsoft Corporation (NASDAQ:MSFT) has long been written off as a lumbering juggernaut of corporate software, too stodgy to ever be cool again. This was not where you turned for the hot new thing. That same study equally suggests that Microsoft Corporation (NASDAQ:MSFT) is back in the hunt.

Microsoft Corporation (NASDAQ:MSFT)The teenager paradox
According to the Buzz Marketing study of youths, “Apple is now too popular to be popular.” Rather than trying to pretend to discern logic where none could possibly exist, let’s agree that part of Apple’s early popularity was that the company embraced the student demographic and, in doing so, created an almost anti-corporate ethos. Apple was never blatantly trying to be anti-enterprise, but by focusing on educational institutions and younger users, it achieved coolness as a side effect.

Since the fall of Research In Motion Ltd (NASDAQ:BBRY) BlackBerry as the ultimate go-to device for business, Apple has very successfully filled the gap. Though the security and enterprise connectivity that made CrackBerrys not only indispensable but IT-friendly once ruled the day, iPhones and iPads have made significant inroads into enterprise applications. Even with the introduction of the new Z10 smartphone and BB10 OS, BlackBerry is on life support and Apple has benefited.

Buzz Marketing Group’s Tina Wells explained: “Teens are telling us Apple is done. … [They're] all about Surface tablets/laptops and Galaxy.” Microsoft Corporation (NASDAQ:MSFT) has a long way to go, but with appeal on the rise among the next critical buying demographic, the company and its shareholders should be thrilled with where things are heading.

Us older folks
The phenomena being observed among teens is also present among older generations, but to a lesser extent. According to a recent poll from Reuters/Ipsos, nearly half of the 18- to 29-year-old survey respondents reported that they consider Microsoft Corporation (NASDAQ:MSFT) to be cooler now than a year ago. While the company edged out the two top social media companies, each of which scored below 50%, 60% of the same respondents said the Apple was cooler than it was a year ago, and 70% said Google Inc (NASDAQ:GOOG)‘s Android was cooler than a year ago. It is important, however, to keep these results in perspective.

Michael Gartenberg, an analyst at ga, said that the poll “definitely shows that Microsoft Corporation (NASDAQ:MSFT)’s efforts are paying off, but we’ll have to see how cool translates into customers. It’s also hard to compare ‘cool’ factor as a quantitative measure against Apple, a company, and Android, a platform.” The takeaway from the survey, however, is not how the three companies stack up. Apple has been the reigning King of Cool for some time, and Google has had its eye of the prize for nearly as long. What is noteworthy is that after an extended hiatus, Microsoft is coming on strong.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!