Windows Phone 7 Won't Move Microsoft Stock

Microsoft Corporation has recently announced the launching of a brand new product, the Windows Phone 7. This is a renovated version of its mobile phone operating system. Microsoft will receive market support from AT&T, which will be the “official” US Company to sell the product.

Microsoft Corporation has been falling in the smartphone area this past year; “falling to 5% in the second quarter of 2010 from 9.3% a year ago”. Since Microsoft’s main competitor, Apple Incorporation, launched the iPhone; they have faced certain fall in their profits concerning the smartphone area. They also had issues with the Blackberry and the Android, falling behind in the mobile innovation. Microsoft tried to be at the level of the rest by launching a line of Kin phones but had to remove them from the market because it was not a successful investment.

This certainly proves how a company may have ups and downs. Microsoft has always been a very well recognized corporation; it has even had the greatest sells in the electronic area at times. Windows phone 7 can get Microsoft involved in the smartphone market again. However, the iPhone, Blackberry and Android are difficult devices to compete with, this is why Microsoft is planning to offer new entertainment such as 2D and 3D games for the program along with new offerings via the Xbox Live Marketplace.

Even though the selling of this new product will not affect the company’s stock, according to Business Insider. Supposedly Microsoft sold around 3 million licenses on what has gone of 2010. If Microsoft doubles its market share in 2011 because of the Windows Phone 7, it may double its production and even get to sell 24 million licenses in 2011. However this will have no monetary impact on Microsoft’s stock. Then the question is, is it an intelligent investment where as to monetary means? I believe the company itself may not fall behind in such competitor market, even though it will have a great financial impact on the company, it is worth producing some more money rather than falling behind in the innovations the industry provides.

Source:

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