On paper, Microsoft Corporation (NASDAQ:MSFT) is an investment that any “right-minded” investor should avoid. Not only did its stock fall 11% in the wake of its most recent earnings report, the largest drop since the infamous financial crisis, but the company finally seems to be accepting the fact that the PC is on a sharp decline. Does this mean you should blindly follow the bears? Not at all; the reality is that right now is the best time to invest in Microsoft Corporation (NASDAQ:MSFT). If anything, history has shown us that it is the “not-so-right-minded” investors who make the most money.
Proven track record of great innovation
Many people are oblivious to the fact that most of the technological concepts in today’s computing and mobile world were first introduced by Microsoft. Microsoft Corporation (NASDAQ:MSFT)’s problem is that it was always too early to the party, not too late as many people are made to believe.
Tracking back to 2003, you will realize that the concept of a smart watch was first introduced by Microsoft. Microsoft’s smart watch presented wireless services based on Smart Personal Objects Technology, earning the name SPOT watch. Users could get snippets of information like news headlines, weather updates and even stock quotes on their SPOT watches.
Although the SPOT watch was not a huge commercial success, it was an open display of Microsoft Corporation (NASDAQ:MSFT)’s innovation. And now, some ten years later, Google Inc (NASDAQ:GOOG) and Apple Inc. (NASDAQ:AAPL) are very emphatic about wearable technology. While Apple Inc. (NASDAQ:AAPL)’s iWatch was initially dismissed as one of those unending Apple related rumors, it has been confirmed that Apple has indeed filed a patent for the name ‘iWatch’. Google Inc (NASDAQ:GOOG)’s Google Glass, despite not having an official release date, has also sent ripples down the market.
As far back as 2007 and 2008, Windows Phone (then known as “Windows Mobile”) had already filtered through the then-small smartphone market. Through Hewlett-Packard Company (NYSE:HPQ) smartphones, Microsoft Corporation (NASDAQ:MSFT) was among the first to introduce the concept of the modern day smartphone. Sadly, the company seemed to have done all the research and development for Google Inc (NASDAQ:GOOG) and Apple Inc. (NASDAQ:AAPL).
Just after 2010, Google’s Android became a commercial success. In fact, it now commands well over 70% of the global smartphone market and even wants to make a bold venture into enterprise, as indicated by the U.S. Department of Defense’s early May move to allow soldiers use secure versions of Android. Apple has also proven its dominance; though not in sheer numbers, but in huge margins. Furthermore, it has been able to build a strong brand. Today, Apple remains one of the most recognizable brands in the global market.
New collaborative structure will bring out Microsoft’s great innovation
When Steve Ballmer announced major restructuring that would root out the bureaucratic culture that was deeply embedded in Microsoft Corporation (NASDAQ:MSFT), commentators were quick to say that he should start by stepping aside himself. Most people don’t understand that drumming out Ballmer will only treat an effect of the problem, not the cause.