Subscribe / Unsubscribe Enewsletters | Login | Register

Pencil Banner

The Macalope Daily: What fight are you watching?

The Macalope | Nov. 21, 2012
[Due to technical issues The Macalope is currently available to all Macworld readers, not just members of Macworld Insider.]

[Due to technical issues The Macalope is currently available to all Macworld readers, not just members of Macworld Insider.]

What fight are you watching?

The Wall Street Journal would have been better off checking itself. Instead it has, indeed ... [pause for dramatic effect and finish with a hoof flourish] ... wrecked itself.

"Upside: Why Microsoft Beats Apple"

We haven't heard from Bret Arends in a while, but he's a repeat offender. Back in March of 2011, Arends was trying to tell us how the Motorola Xoom was a better deal than the iPad. So you know you're going to get some top-notch anamalyzing as he tries to tell us how Microsoft is a better deal than Apple.

Microsoft could be the better value. Not only is it cheaper than Apple relative to its earnings per share, but Microsoft's business also has greater strengths, and better prospects, than the market appreciates.

Reaaaally.

Granted, when these two have gone head-to-head in the past, Microsoft has come off worse--in tablet computers, music players and smartphone software. Apple desktops and laptops also have gained market share in the past decade, albeit from a small base.

But otherwise, Microsoft is aces! For example, it's totally winning the war on good product names.

But today, Microsoft's prospects look better than its market valuation reflects. And while Apple stock also seems reasonably valued, its business is more vulnerable than many realize.

Oooh, this is going to be soooo gooood ...

Microsoft's strengths include a broad range of "sticky" products--ones users are reluctant to change.

As opposed to Apple, which only has user satisfaction rating consistently higher than everyone else in the industry.

Wait, what?

You know, Bret, just saying things does not make them true. Or make them make any sense at all.

Windows operating systems provide about a quarter of revenue, and business software such as Office about a third. Another quarter of sales come from servers; the rest, from Xbox computer games and other sources.

Now Microsoft is introducing its Office suite of products--Word, Excel, PowerPoint and the rest--to a new market of touch-screen tablet users.

Yeah! How's that going?!

Oooh. Yeah, that's how that's going.

Microsoft recently unveiled tablet software, called Windows RT, that received good reviews.

Well, except for this one. And this one. And this one. And ...

Whatever, those are probably all Apple fanboys and we all know that good reviews automatically mean lots of sales and, besides, Apple products are never reviewed or sell well THE END.

More important, Microsoft's new Windows 8 operating system has been completely redesigned for a new generation of touch-screen tablet computers being rolled out by the likes of Samsung, Toshiba and others.

 

1  2  Next Page 

Sign up for CIO Asia eNewsletters.