Someone not on Microsoft’s payroll, but with an ax to grind, says Microsoft will eventually defeat Google and Apple in the smart phone and tablet wars.
Why would Charles Sizemore of Sizemore Capital say that? What does he offer as proof?
The answer to my first question is almost as simple as the answer to the second question.
First, Sizemore is stuck holding a lot of Microsoft’s flatlined stock, so it’s likely he would say anything to help nudge the market in his direction.
Second, there is absolutely no proof that Microsoft can compete against Google and Apple or Samsung in the smart phone and tablet arena, let alone topple any of the three from their respective positions of prominence.
Why does Sizemore think Microsoft will pull ahead of Google and Apple? Because ‘Apple has no durable long term advantages to keep customers loyal.‘ Somehow or another ‘Apple’s insistence on controlling every aspect of software and hardware puts it at a disadvantage to a more flexible Microsoft.’
Isn’t it Microsoft that is adopting Apple-like control over software and hardware with the Surface tablets? Isn’t it Microsoft that acts as the puppet master to Nokia to drive quality hardware to match software?
Has anyone explained to Sizemore than Apple’s customers are the most loyal in the world?
What about Google? Sizemore says he doesn’t take Google seriously because the company’s products are shoddy and don’t match Apple and Microsoft’s superior products.
Microsoft Windows Phone and Surface are superior? To what? The smart phone and tablet market are already voting and Microsoft isn’t winning any delegates to the Electoral College of Profitability.
Sizemore admits that he holds a long term position in Microsoft. Yes, that’s right. Long, long, long term. MSFT has virtually flatlined for 10 years. What’s he waiting for?
A good stock strategist dumps bad stocks and invests in good stocks. Sizemore missed Google and Apple, and now it appears he wants a measure of revenge for his shortsightedness by raining on Apple’s profit parade, and pumping up his big loser.
What’s missing in Sizemore’s lame excuse for analysis is the how. For Microsoft to defeat Apple in smart phones and tablets the math must be applied. Either make phones and tablets that are nearly as good but sell them for much less, or, make them better than iPhone and iPad, and sell them for about the same.
Microsoft doesn’t appear to be willing to do the former, and simply cannot do the latter.