|Sent on:||Wednesday, October 27, 2010 4:28 PM|
On the other hand...:
CNN Money: "Microsoft's demise is greatly exaggerated: The most behind-the-curve but wildly profitable tech company"
...The naysayers are writing requiems for Microsoft because of its paltry market share in tablets and smart phones, where the future-growth forecast is highest.
But here's why Microsoft's struggles aren't as epic as some may believe: The company is in phenomenal financial shape, it is quickly taking a lead in cloud computing, and cash cows Windows and Office aren't going away anytime soon.
"Reports of Microsoft's impending demise are not only greatly exaggerated but certainly far from the truth," said Laura DiDio, principal analyst at ITIC. "Microsoft has a perception problem, but in reality, it does a lot of things very well."Leveraging strong finances
Microsoft has become a quasi-tech conglomerate, with about 9,000 products in its portfolio. That helped the company rake in $58.4 billion last year. Its profits on those sales are staggering: Microsoft earned $14.6 billion in 2009, making it the second-most profitable company in the United States, behind only Exxon Mobil. Its profit margin of 25% ranks 14th in the country.
The software giant is the third-highest valued company on the market, trailing Exxon and Apple, and it has $37 billion in cash on hand.
"Anybody with reasonable intelligence has to ask how people can write off Microsoft when it is in such good financial shape," DiDio said...