Why Microsoft Is The New Apple, Except For The Valuation

My Ignorant Mistakes

First, my biggest error was assuming that Microsoft (MSFT) would be stuck where it was forever. If you just look at the stock chart, it’s easy to think that because Microsoft was stuck at $30 for a decade.

Second was dismissing Surface Pro and its entry into the hardware space as a short-term test.

“It’s done nothing for 10 years, I’ve got plenty of time. I’ll look into Microsoft when there is nothing else to invest in,” I told myself.

But hindsight is 20/20 and money isn’t made in the stock market by dwelling on misses.

Why Microsoft Is Not Copying Apple

Keep in mind that I have no interest in making this into a tech gizmo article about specs, performance, future products and comparisons of the new Surface product line with the MacBook.

What is happening and is becoming more obvious with each Surface model is that Microsoft’s entrance into the hardware industry is revitalizing the PC space.

The company’s software and hardware combo strategy is finally working.

Why shouldn’t it?

Apple has shown how successful the business model is. Outside of the phone and computing industry, it’s common sense to provide your own software and hardware.

  • The Bloomberg Terminal provides HW and SW for a massive amount of money and is entrenched in the financial industry.
  • Square provides fantastic looking and functioning credit card swiping hardware with quality software.
  • Fitbit (NYSE:FIT) has a gorgeous user interface that functions seamlessly with the HW.
  • GoPro (NASDAQ:GPRO) will be stupid to distribute Adobe Premier Pro as its video editor.
  • So it doesn’t make sense to claim that Microsoft is copying Apple. To put it politely, Microsoft woke up from a 10-year beauty sleep.

    How Microsoft Is Revitalizing The Industry

    Just a few years back, it was unthinkable that Microsoft would be competing with its hardware partners like Dell and HP (NYSE:HPQ). But you can’t hide the cold hard facts that PC shipments dropped 11% last quarter and have declined for 14 quarters straight.

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    Author: Travis Esquivel

    Travis Esquivel is an engineer, passionate soccer player and full-time dad. He enjoys writing about innovation and technology from time to time.

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