When one examines Microsoft’s financial performance, it’s hard to believe that there could be any trouble in Redmond. After all, the company’s revenue continues to rise and it’s generating billions of dollars in profit each quarter.
Windows is still the dominant force in PC operating systems and Office is arguably the most important productivity suite in the world. After such a cursory look it appears as if Microsoft is as sound as a bell.
However, there’s more than meets the eye with Microsoft. The software giant was once the world’s largest company and the most dominant force in PC software.
However, now competitors are chipping away at its power from all sides. Microsoft has a paltry market share in the mobile market and despite Windows’ success, it’s not clear whether it will still be dominant in a few short years. Even Microsoft’s online efforts leave much to be desired.
Unfortunately for the software giant, there are a number of products hurting its operation.
Read on to find out which products are hurting Microsoft.
1. Windows 8
Windows 8 is a real problem for Microsoft. The company’s latest operating system is not being adopted nearly as quickly as it would have liked in its first few months of availability, due mainly to the fact that it comes with a new design that so far, some customers don’t like. The enterprise is especially concerned with the design since it could hurt productivity. Furthermore businesses are in no hurry to upgrade because they are happy with Windows 7. Until Windows 8’s shortcomings are working out, it will hurt Microsoft business results.
2. Windows Phone 7.8
Windows Phone 7.8 might go down as a black mark on Microsoft’s mobile efforts. After announcing Windows Phone 8 last year, the company noted that devices running Windows 7.5 couldn’t be upgraded to its latest operating system. The result? A half-baked update called Windows Phone 7.8 and a lot of disgruntled customers.
3. Apple’s iPhone
The iPhone has dominated the smartphone market for years, thus ensuring that Microsoft will struggle to catch up in the mobile market. Microsoft currently doesn’t offer a smartphone that’s on par with the iPhone and doesn’t have a third-party smartphone partner that can compete with Apple. Until it does, it’ll be hard for the software giant to establish itself as a serious contender in the mobile space.
Perhaps the biggest reason Microsoft is behind in the mobile market is Android. Google’s operating system last quarter nabbed 70.1 percent of the smartphone OS market, according to research firm IDC. Microsoft’s Windows Phone, meanwhile, could only muster 2.6 percent market share. If that doesn’t tell the whole story, what does?