Microsoft losing mobile OS ground

Bob Moon Jul 20, 2009
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Microsoft losing mobile OS ground

Bob Moon Jul 20, 2009
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TEXT OF STORY

Steve Chiotakis: Ah, earnings season. So exciting. So informative. So … many this week. Today, we got word that Hasbro profits rose by 5 percent. That beat expectations. Transformers and G-I Joe popular among the kiddies — and some adults, too.

We also get reports today from Halliburton and Texas Instruments. Microsoft comes out Thursday. And analysts differ over how the software giant is faring in this recession. Here’s Marketplace senior business correspondent Bob Moon.


Bob Moon: New versions of Windows typically boost Microsoft’s stock price. It’s also won some points with ad experts for its response to those cheeky “I’m a Mac” ads from rival Apple.

PC Ad: Let’s go see the Macs. They’re kind of popular with this age . . .

But while Microsoft has been trying to spruce up its image, it may have taken its eyes off another key market: Mobile operating systems. They’re used in compact “netbooks” and cell phones run by software from competitors such as Google and Apple:

iPhone Ad: Yep, there’s an app for just about anything, only on the iPhone.

At Argus Research, analyst Jackson Turner says bit by bit, Microsoft’s been losing operating system market share, and that trend is likely to continue.

Jackson Turner: Users are getting comfortable with fairly simple operating systems, and I believe that’s going to translate into a broader acceptance of operating systems other than Windows.

So much so, Turner contends, that he just downgraded Microsoft shares from “buy” to “sell.”

I’m Bob Moon for Marketplace.

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