Ballmer downplays Microsoft's shift in market value, says it's a 'long game'
By Donald Melanson 
posted May 27th 2010 1:12PM
posted May 27th 2010 1:12PM
Nothing too shocking here, but Microsoft CEO Steve Ballmer has made his first public comments on his company's recent slippage in market cap, and he's unsurprisingly downplaying the numbers. Speaking at a press conference in New Delhi, Ballmer said simply that "we are executing very well," and "that's going to lead to great products and great success," later adding that, "I will make more profits and certainly there is no technology company in the planet which is as profitable as we are," and that "stock markets will take care of the rest." What's more, while he seemingly didn't refer to Apple by name, he did say that "it is a long game," and that "we have good competitors ... we too are very good competitors." As you might expect, Ballmer was also asked about the recent shakeup at Microsoft, but he apparently wouldn't say anything more than that he "wouldn't predict any drastic changes" in strategy for the division, and that "we'll have to accelerate plans" -- although it's not exactly clear what will be "accelerated."
they'll all be working for Google.
resistance is futile!
@dark star
"I will make more profits and certainly there is no technology company in the planet which is as profitable as we are..."
It is this kind of conventional thinking that got Microsoft to the top, but also into the doldrums that they are today. This profit-uber-alles motive would exclude giving their OS away (as Google did with Android) to establish dominance. If Google had done the same thing as MS did with Windows, then Android would just be another also-ran. Sometimes ya gotta make less money, before you can make more money.
Ballmer is the one that needs to be replaced.
@d00b I think if ballmer resigns, that would recover MSFT market share immediately.
@sshating
Oh crap! Somebody better tell Apple that iAd is a bad idea then! :S
@BecauseItsNotGoogle
Are you in denial? Get out of the closet already...
@sshating Hardware OEMs currently making same mistakes they made with windows. Let someone else control software platform which is main part of user experience. Then they will fight with each other for cheaper phone like PCs and ultimately degrade Android experience. I wish Apple keeps focus on stuff they do and dont play market share game.
@dark star I just caught myself thinking I miss Billy...
@gillza
Are you in denial? the man is right dude. Google has no clear plans for Android..... hint the total fragmentation and the shitty Android store. Android was and is ONLY a way for Google to put their shitty adds on!.
Google = the new Microsoft
@d00b Yeah - I don't understand why their shareholders put up with him still. Since he's been running the company, the value has dropped by half. In the same time, the other Steve, (Jobs of course) has increased the value of his company tenfold.
@dark star
"Smithers, help me subdue this beast."
@bingster
Lol, seems like the use of terms such as "Fragmentation" and "No plans for android" is a common practice for those who knows next to nothing and just wants to sound cool.
@Bing
Androids domestic market share = 28%, worldwide smart-phone market share 9.6%
This kind of disinformation is typical for MS fanboys. This is a typical FUD strategy MS likes to use. So sheck your numbers and shut it little fanboy.
http://www.marketwatch.com/story/android-market-share-passes-iphones-npd-data-2010-05-10
http://channel.hexus.net/content/item.php?item=24699
@htd Im not sure.. that will happen, i think he should step down. he loves the company he worked there for so long but hes obsolete now. ballmer should just enjoy his billions. he might retire after the stock recovers? when the us economy is growingfaster ?
@BecauseItsNotGoogle
Sane Engadget commentors 99%
Insane flame mad jerks 1%
@gillza i was gonna say, 3% did NOT seem accurate in any way... android is freaking amazing, and now with some design features being looked into it might just dominate all quicker than expected... EVO with exchange support is a legit business phone and the 50,000 apps are high quality, still waiting for WinPho7 to relase with the HTC Mondrian tho, its definitely my next phone... Google and Microsoft have me excited about smartphones all over again
sent from my winmo powered HD2 btw
@dark star It's a long game that MSFT has dominated for almost 2 decades. The writing is on the walls. You can't survive off Windows and Office and continue to hemorrhage money for R&D on failed ventures. Sorry or later, a once small upstart like Apple will...oh wait.
@sshating
10 years ago, when someone thought of putting ads on internet pages, people were like, who the fuck is going to put ads there.
Today, most of these sites run on just advertisements. Ask Engadget if you want.
The same is the case with mobile. There is a huge potential in mobile ad space. You need to see it as a developer and a business and not as a layman.
@gillza Most of those devices are not as good as people make them out to be and are running Android 1.6, a full 2 versions behind once android 2.2 comes out. Not to mention that Phone providers do exactly what people hate and that is turn off features that don't fit in with their Greed and need to gouge you for every penny they can. How many of you actually believe you'll ever see the free tethering that Android 2.2 has on your phones. The best Android phone coming out requres you to pay $30 dollars for the privelage, granted it's still half as much as you pay for it with a separate device but if you think they are going to give it to you for free your out of your minds. So that begs the question what's the point of Android if the interface gets hijacked and features get turned off or reduced because phone companies are too cheap or greedy to get them to work. Not to mention MONTHS OF WAITING FOR UPDATES!!! Bitch all you want about Apple but when the 4.0 release comes out most people will be able to download and install it within 24 to 48 hours, instead of waiting 2 more months for their phone provider to stick crapware in it and call it "TESTING".
@dark star haha, I bet he's resisting the conflict about explaining to the masses why his 2 best developers quit MS. http://j.mp/microsoft-going-down-sort-of
Dance, monkey boy! Dance!
@Jack
Developers, Developers, Developers, Developers, Developers, Developers, Developers, Developers, Developers, Developers, Developers, Developers, Developers, Developers, Developers, Developers, Developers!!!!
http://www.youtube.com/watch?v=8To-6VIJZRE
"we'll have to accelerate plans"
The next Xbox announcement next month at E3?
Yes yes I know it won't happen. I hold out hope for a slimmer one though.
Microsoft need to address a few things but they still make shed loads of money. Apple may have surpassed them in terms of market cap but they've a long way to go before they reach their profit and revenue levels.
@MarkAnderson That would be 4th quarter in 2010. Not sure if that is long enough for you.
@memeslayer Microsoft announced fiscal 2010 third quarter results: $14.5 billion revenue, $5.17 billion operating income and $4.01 billion net income, or 45 cents a share," "On Tuesday, Apple announced fiscal 2010 second quarter results: $13.5 billion revenue and net profit of $3.07 billion, or $3.33 a share. Apple revenue is $1 billion behind Microsoft, while net income trails by a little less — about $940 million."
@memeslayer
And that's after a big product launch from Apple.
Its all going to boil down to the iPhone 3GS2 vs. WP7 + Natal this year.
@BlackedOut big product launch? iPad sales will only start counting from this quarter, results will be announced in July. iPhone HD figures will be included in October results, that's when Apple will surpass Microsoft in revenues.
@sshating
If it wasn't for that MP3 player they invented, upgraded, turned into a phone and enlarged, Apple would have been a tiny (OK. medium sized) blip on the radar right now.
Google and Microsoft have both got their hands in so many pies its Crazy. With more new things on the way, GoogleTV and WP7 as the pick of the litter.
@BlackedOut
If Apple never came out with the Mac OS, your Microsoft Windows would not exist.
@TheLondonExchange Has it been that obvious? lol
@BlackedOut That's part of the problem. Hands in so many pies and some of them don't make money.
@Joao Cagao if HTC had never released th iPaq or the i-mate your iPhone wouldnt exist whats your point? its ok for apple to directly steal an idea but not ok for microsoft to create a better product than the one you love?
@TheLondonExchange
Owned... by being right?
You really are special and not in a good way, kid
@Joao Cagao Because windows is based on too like mac os x?? Huh? Your comment makes no sense.
Apple's market share is threatened by Google, so I don't expect their lead to last. But this is definitely a wake up call for Microsoft.
@Tohe I don't really think it's a wake up call, nor do I think Ballmer's playing down the numbers to be deceitful. Microsoft must have known this day would be coming a long, long time ago. They're probably very happy to have remained on top for as long as they did and are now realistically prepared to compete with worthy competitors.
@Matt1122 \
Apple capitalized on Microsoft mistakes, one of them being the release of Vista. Once Microsoft gets its act together (which it has), Microsoft will leave Apple well behind.
Market capitalization is just funny money. It's what the public THINKS a company's stock is worth.
@Nitesh Oh yeah? Then why companies consider market cap when they acquire or merge with another company?
I'm sorry but the public is high off of fruit juice right now. Screw what they think.
@memeslayer Because ultimately they have shareholders who have to approve those kinds of things, and they need to at least make them believe it's a good idea whether it actually is or not
@Nitesh memeslayer? are you an apple investory? no? oh then why don't you care.
Market Cap is one of the numbers they look at for mergers. Its a good indicator of a company, but in the end, it is funny money, and in the case of apple, it is inflated.
Apple is doing well, don't get me wrong, but ask any investor, even apple shareholders, everyone knows Apples current stock is inflated.
As a consumer, I don't really care who wins. All i know is compition = cool new products from ALL companies, I Don't feel the need to align myself with 1.
Google, MS, and Apple, all American companies; Thats the only team i need to be on A-MER-REE-KA.
@SirNoDroin Apple's PEG ratio is better than Microsoft's. If anything, Microsoft's stock is more inflated. Apple's P/E is larger because they have momentum.
@Nitesh
Apple is basically just a consumer spending index. Microsoft gets most revenue from what are essentially annuities, long-term volume agreements. So Apple can be very volatile, Msft is not.
Lets kick some ass MS !
MSFT will win in long run.
Still more profitable then aapl and good.
If Natal and Windows phone 7 takes off MSFT will be top again by next year.
@pinktacoyummm Don't forget Office 2010... with the Win7 style beta testing, it should be a hit too. I've already secured my copy...
What did everyone expect? "God, Microsoft suck so much. Everything's going to the dogs since I took over. All hope is lost!"
as of right now MSFT is big mrkt cap wise by few millions. lol
I want to hear bill gates comment too
Why do they let Ballmer talk unscripted???? Why????