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Microsoft Should Dump Middlemen, Build Own Phones
suraj.sun writes "Microsoft has a long and illustrious history of operating system sales. The model has served the company well on the PC, but if it wants to make money in the phone market, it needs to start thinking like a consumer electronics company and start making its own phones."
... and failed spectacularly?
And seeing how the "make the OS, leave making the phone (mostly) to others" business model seems to be working rather well for Google, I don't see, why it shouldn't for Microsoft.
RROD on the back and BSOD on the front.
Very stylish!
I remember when dumb ideas from unimportant losers was reserved for the comment section.
Do you even lift?
These aren't the 'roids you're looking for.
Lots of companies have higher revenue but so what? Have you never heard the following saying?-
Revenue is vanity
Profit is sanity
Cash is king
If Microsoft is getting more profit from it's revenues then that means it has a better business model, and as Microsoft has both higher profits and more cash Apple's increase in revenue, like it's market cap, is largely meaningless. It'll only matter when Apple overtakes Microsoft in profit and equity and assets, until that point Microsoft is still the more solid business.
To illustrate the point, Dell has a revenue of $53bn but a profit of only $1.4bn. By your logic the fact Dell has a revenue around $10bn higher than Apple it's a stronger company, but the profits tell a completely different story. I think you'd be hard pressed to find anyone who believes Dell, despite it's high revenue is a better bet when it has such vastly lower profits and vastly lower assets and equity.
Besides, your assertion that Apple's revenues being about the same as Microsoft isn't even close to true anyway, there's about a $20bn gap with Microsoft at $62bn and Apple at around $42bn and Microsoft's latest results showed them with more revenue than Apple too meaning Microsoft are in fact widening the gap.
Even if Apple do close the revenue gap they still don't have the profits gap closed and still don't have the assets or equity of Microsoft.
So as for where I want to be, well, I'd still rather be where Microsoft is- higher revenue, higher profits, higher equity, greater assets, and not even losing ground in those metrics.
If I were you I'd get a little better understanding of what revenue actually is, what profit is, what equity and assets are and what they mean for a company. Further, you also seem to have a confused view of the importance of quarterly revenue, for example, you suggest that Apple might pass Microsoft in revenue next quarter, which is certainly a possibility, but by how much? maybe in the absolute best case by a couple of $bn but they've got a $20bn gap to close across the year so they'd need to jump at least $5bn ahead every quarter from their current position of being behind, and once they've done that they've got to go from turning $1 in 5 of revenue into profit, down to $1 in 3 into profit which is where Microsoft is, and then building equity and assets takes time. All this for them to even catch up with Microsoft, let alone overtake it.