Apple/ Microsoft/ Google
This year will be the last year of growth for Microsoft and their Windows OS. Interestingly, Apple isn’t the reason (even though there OS is better). Google is developing their Chrome OS to give away free to all manufacturers. Their free OS will be accompanied with the Google browser and most importantly, a FREE office suite that is compatible with MS Office. The total package will be lighter and quicker than windows and will tie in with the Android platform of applications. In the same way that Android has replaced Win Mobile as the OS of choice by third party manufacturers, Win7 will be usurped by Google’s Chrome OS. Ironically, Google has turned Microsoft’s old stategy on them. In the same way that Microsoft bundlied free software into the OS (to eliminate competition) Google is going to give away the OS and the basic office applications in return for being the users search provider. Poetic justice, and the consumer wins. I wouldn’t want to be a long term holder of Microsoft stock. They cannot defend their profit structure against free. They cannot win. BTW, Apple’s market cap is within 10% of Microsoft. Apple will eclipse Microsoft shortly, signifying the end of MSFT’s reign. How will this play out between the two winners (AAPL & GOOG)? I presume both will continue to prosper as Apple will always provide the best user experience at a premium price earning high margins. What am I missing?
Inflation robs from the past, deflation robs from the future. Pick your poison.