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Microsoft's quandary: Big profits from software or shrinking margins with devices

Gregg Keizer | Jan. 28, 2014
Company's Q4 financials illustrate the hit Ballmer's strategy takes on gross margins.

"Financially, Microsoft is doing just fine," he said Friday. "They're doing pretty well in a down market for both PC and enterprise spending, they out-performed the market in both consumer and commercial.

"But strategically, I can't make a case that they are doing well at all," Moorhead continued. "In mobility, smartphones and tablets, but even in the cloud, I'm not impressed."


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