Will Microsoft Corporation (MSFT) Now Get the Respect It Deserves?

Page 1 of 2

Even though Microsoft Corporation (NASDAQ:MSFT) is the force behind Nokia Corporation (NYSE:NOK)’s improving smartphones sales due to the Windows Operating System, it is Nokia’s stock that is up more than 130% for the last six months with Microsoft’s down almost 2% for the same period.

Obviously, Microsoft is a far bigger company than Nokia with a market capitalization about fifteen times as large, but the success of the Lumia smartphone could be adding more to the share price of Microsoft in the future for the damage it does to competitors such as Apple Inc. (NASDAQ:AAPL), Research in Motion Linited (NASDAQ:RIMM), and Samsung.

Both Apple and Research-in-Motion are very vulnerable to Windows smart phone sales. While Research-in-Motion has rebounded sharply, up almost 140% for the last half year, if the new Blackberry 10 does not prove to be a success, it will be a disaster for the company. The month of February will be critical for Research-in-Motion as the Blackberry 10 was recently unveiled.

Apple is certainly not in as precarious a position as Research-in-Motion. The iPhone is its biggest money maker, however. That Apple is down more than 20% for the last quarter reveals its vulnerability to increased competition. Due to the success of the previous iPhones, there have been analyst reports that Apple would be a $1000 stock. It is now trading under $460, down 26.33% for the last quarter.

What makes the future for Apple even gloomier is that Nokia with the Windows smartphone is strong where Apple is not: emerging market nations. That is why there are reports that Apple will be bringing out a cheaper version of the iPhone, as it needs to increase sales in the developing world. Nokia is already strong in nations such as India, Indonesia and others with its feature phones and lower-end smartphones.

That position gives Nokia and the Windows smartphone a tremendous competitive advantage over the iPhone. Nokia cannot go toe-to-toe with Apple in terms of financial resources, but Microsoft certainly can. If this were a boxing match, Nokia and the Windows smartphone have certainly won the first round.

Apple is too big to knock out, however. But Research-in-Motion is not. Research-in-Motion is putting everything into the launch of the Blackberry 10: it has even bought advertising time for the Super Bowl game this Sunday. When Nokia put out the Lumia 920 last April, it was a debacle. But Nokia recovered from that, due in large part to its partnership with Microsoft. It is difficult to see how Research-in-Motion can recover if the Blackberry 10 falls.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

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!