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Microsoft Corporation (NASDAQ:MSFT)’s Investors Worried About Cloud Transition – AAPL, GOOG

Boston, MA 10/21/2013 (wallstreetpr) – Microsoft Corporation (NASDAQ:MSFT) has been losing market share value rapidly to its major rivals Apple Inc (NASDAQ:APPL) and Google Inc (NASDAQ:GOOG). Microsoft changed the face of the IT industry through its Windows operating system and Office suite of software. It attained iconic status very quickly. The unofficial partnership with Intel Corp (NASDAQ:INTC) saw both companies launching complementary products in their respective hardware and software segments. Intel would launch faster processors to work on Microsoft’s newer versions of processing speed dominant operating systems. Both companies remained focused on their own segments and failed to notice emerging trends in the markets. Demand for PCs slumped and demand for mobiles and smartphones evolved. Tablets and smartphones took the place of PCs. Microsoft was not in a position to take advantage of the changing trend. Bad sales performances, tumbling revenues, and steadily declining market shares over many years saw the industry leader lose shareholder value. Apple Inc (NASDAQ:AAPL) launched several versions of iPhones and iPads. Microsoft could not penetrate the market in smartphones dominated by Apple, LG, and Samsung. In the software segment, Microsoft could not match up to the Android operating system. Google Inc (NASDAQ:GOOG) smelt an opportunity and took over Android Inc in 2005, well before the launch of the Android operating system. Android was launched in 2007, and it became the operating system for touch-screen based smartphones.

Microsoft may have lost the battle, but it is determined to fight the war. It has taken over Nokia Corporation (NYSE:NOK) for $7.2 billion. Nokia, once the numero uno in the mobile segment, lost market share rapidly to Apple, Samsung, and LG. It also could not evolve into the smartphone segment. Microsoft intends to use Nokia to gain an entry in the mobile hardware segment while developing and promoting its own operating systems. Investors and analysts are watching the company’s moves very closely.

The stock was trading at $34.96, up by 0.11%, at the end of trading on October 18.

Published by Steve Hackney

Steve Hackney is a corporate finance professional with over 14 years of experience in cash management and investing. He earned a Bachelor of Science in Finance from Florida State University and holds a Certified Treasury Professional certification. Steve lives in Orlando, Florida with his family.

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