5 ms·

Goldman downgrades Microsoft, blames iPad

22 points by lotusleaf1987 16y ago

Groxx 16y ago
145 words[1] of blogspam. Article it links to: http://www.techflash.com/seattle/2010/10/goldman_downgrades_microsoft_says_change_in_cource.html http://www.techflash.com/seattle/2010/10/goldman_downgrades_... [1]: from wc -w of copy/paste of the post.
tzs 16y ago
The article that blog cites doesn't say anything about iPad.
- brlewis 16y ago
  "notebook cannibalization from tablets"
jscore 16y ago
Do people trust Goldman? To me it's nothing more than a rigged casino.
earl 16y ago
I don't know where I read this, but it does seem like MS got so obsessed with Google and the online advertising market that they sort of forgot about their core markets. Where I would call making good software that runs on devices a core market. Hence they utterly missed the iphone and ipad markets. Because really, those markets where theirs to lose. I wonder if this is just a symptom of a complete lack of imagination in the executive offices at MSFT? It does seem like going after online advertising was just flailing around looking for a market big enough to be relevant to their revenues.
m0nastic 16y ago
The thing I don't understand is...why change the recommendation now? I don't honestly believe that tablets (which is presently a euphemism for iPad) effect PC sales all that much. If every single person who buys an iPad was otherwise going to buy a Windows Laptop, it still represents a fraction of the number of people who are buying PC's. I don't doubt that PC sales might be flattening, but I think it's curious to blame that on the iPad. I don't think Goldman has the foresight to lower it's recommendation on Microsoft for the future potential of tablets (which could very well end up playing out with Microsoft finally adopting a winning strategy, or fizzle out entirely); so why else? Microsoft's mobile strategy? Which has been a punchline for several years, but is finally looking to at least have the potential for some light at the end of the tunnel. So why the sudden change of heart?
- teyc 16y ago
  Until now, it has been generally assumed that WinTel is insurmountable, because of Metcalfe's Law; established software base. Therefore, MS will always continue to reap from the general growth in computer use. The iPad showed that a new class of computers, framed as limited function devices can successfully establish a beachhead in the enterprise, challenging Microsoft's hegemony without having to run Microsoft software. Apple has also succeeded into cultivating a thriving ecosystem of Apple developers. At this stage, all bets are off, and Microsoft has never been so insecure or vulnerable since its early days.
jcnnghm 16y ago
At first I didn't really think this was smart because they are very different markets and devices. But then I started thinking, and within 6 years I think I'll have an iPhone with 8 GB of memory, a 2ghz quad-core processor, and 256GB of flash storage. In that case, I don't see why I wouldn't dock that and use full-blown OS X on the desktop, as long as the dock has integrated graphics hardware. I doubt the analysts are thinking that far out, but I'd wager that's where things are going.
jakarta 16y ago
The thing to keep in mind is that the recommendations by sell side analysts are often very focused on the short term. They are actually pretty bad at telling you where the stock price will actually go -- but the more senior analysts are wonderful as experts on industry-wide trends.
code_duck 16y ago
Microsoft hasn't even caught up to the iPhone, much less the iPad. It seems like their cycle includes floundering for several years in between getting important products released.

22 points by lotusleaf1987 16y ago

Groxx 16y ago

145 words[1] of blogspam. Article it links to: http://www.techflash.com/seattle/2010/10/goldman_downgrades_microsoft_says_change_in_cource.html http://www.techflash.com/seattle/2010/10/goldman_downgrades_... [1]: from wc -w of copy/paste of the post.

tzs 16y ago

The article that blog cites doesn't say anything about iPad.

brlewis 16y ago
"notebook cannibalization from tablets"

jscore 16y ago

Do people trust Goldman? To me it's nothing more than a rigged casino.

earl 16y ago

I don't know where I read this, but it does seem like MS got so obsessed with Google and the online advertising market that they sort of forgot about their core markets. Where I would call making good software that runs on devices a core market. Hence they utterly missed the iphone and ipad markets. Because really, those markets where theirs to lose. I wonder if this is just a symptom of a complete lack of imagination in the executive offices at MSFT? It does seem like going after online advertising was just flailing around looking for a market big enough to be relevant to their revenues.

m0nastic 16y ago

The thing I don't understand is...why change the recommendation now? I don't honestly believe that tablets (which is presently a euphemism for iPad) effect PC sales all that much. If every single person who buys an iPad was otherwise going to buy a Windows Laptop, it still represents a fraction of the number of people who are buying PC's. I don't doubt that PC sales might be flattening, but I think it's curious to blame that on the iPad. I don't think Goldman has the foresight to lower it's recommendation on Microsoft for the future potential of tablets (which could very well end up playing out with Microsoft finally adopting a winning strategy, or fizzle out entirely); so why else? Microsoft's mobile strategy? Which has been a punchline for several years, but is finally looking to at least have the potential for some light at the end of the tunnel. So why the sudden change of heart?

teyc 16y ago
Until now, it has been generally assumed that WinTel is insurmountable, because of Metcalfe's Law; established software base. Therefore, MS will always continue to reap from the general growth in computer use. The iPad showed that a new class of computers, framed as limited function devices can successfully establish a beachhead in the enterprise, challenging Microsoft's hegemony without having to run Microsoft software. Apple has also succeeded into cultivating a thriving ecosystem of Apple developers. At this stage, all bets are off, and Microsoft has never been so insecure or vulnerable since its early days.

jcnnghm 16y ago

At first I didn't really think this was smart because they are very different markets and devices. But then I started thinking, and within 6 years I think I'll have an iPhone with 8 GB of memory, a 2ghz quad-core processor, and 256GB of flash storage. In that case, I don't see why I wouldn't dock that and use full-blown OS X on the desktop, as long as the dock has integrated graphics hardware. I doubt the analysts are thinking that far out, but I'd wager that's where things are going.

jakarta 16y ago

The thing to keep in mind is that the recommendations by sell side analysts are often very focused on the short term. They are actually pretty bad at telling you where the stock price will actually go -- but the more senior analysts are wonderful as experts on industry-wide trends.

code_duck 16y ago

Microsoft hasn't even caught up to the iPhone, much less the iPad. It seems like their cycle includes floundering for several years in between getting important products released.