Mobile has altered the way people think about computers. A few years ago, the average consumer would never install a free, open-source, Linux-based OS on their PC, even though Linux for the PC has been available for years. Consumers bought into the idea that you needed Windows. Google Inc (NASDAQ:GOOG) turned this notion on its ear with Android, and Microsoft’s moat is crumbling.
Consumers have overwhelmingly responded, buying more than a billion Android devices. Google Inc (NASDAQ:GOOG) then makes its money from the Google Play store, and its ubiquitous Search, which some have estimated Google Inc (NASDAQ:GOOG) to have 90% share of in mobile. And while not a direct correlation, Google Inc (NASDAQ:GOOG)’s earnings per share has increased 158% since just after the commercial launch of Android in 2008.
Simply put, consumers just don’t see any benefit to buying a mobile device that says “Windows” on it, after decades of not really having a choice.
The importance of culture
However, they will pay a premium for one that says Apple Inc. (NASDAQ:AAPL), as the company’s recent quarterly report showed us with solid iPhone growth in the face of increased competition from Samsung. But Apple Inc. (NASDAQ:AAPL) is in a different place than Microsoft, despite also undergoing major leadership changes.
Apple Inc. (NASDAQ:AAPL) CEO Tim Cook is in a tougher position than Ballmer, as Jobs’ death took him from us much too soon. However, Jobs’ legacy will be as much about the culture of innovation that he instilled as CEO, as about his own vision. Cook has acted as a steward of that culture, staying within his own strengths as an operator, and putting people like designer Jony Ive in positions where their skills best serve the company’s future.
While the record will show that Ballmer at times seemed to resent the legacy and shadow cast by Bill Gates, Tim Cook doesn’t chafe at comparisons between himself and Steve Jobs. He knows his strengths and those of Apple Inc. (NASDAQ:AAPL)’s people, and isn’t trying to shape Apple Inc. (NASDAQ:AAPL) into his own image, and shares are up 55% since Cook took over in January 2011.
Bottom line: We just don’t know
Microsoft Corporation (NASDAQ:MSFT) is about to undergo its most important change in more than a decade, and there’s no way to tell what, or if, a new leader will be able to affect change at Microsoft that brings measurable positive results. The Fool’s Rick Munnariz said it pretty well: It probably won’t matter.
The key? The upside just isn’t worth the uncertainty. After years of holding, I’m selling my shares of Microsoft as soon as Fool disclosure rules allow.
The article Why It’s Time To Sell Microsoft originally appeared on Fool.com and is written by Jason Hall.
Jason Hall owns shares of Apple, Microsoft, and Google. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple, Google, and Microsoft.
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