Microsoft (MSFT) Looks to the Past for the Right Moves

When Microsoft (MSFT) launches a new operating system (OS), it becomes as big a deal as when Apple (AAPL) launches a new iPhone. And today, we are getting the Windows 10 launch. Remember, when Bill Gates started MSFT (yield: 2.7%), it was built around his operating system, which gave users a friendly graphic user interface that finally hid all the coding and programming guts that are crucial to operating computers. This was revolutionary. Now, there’s some debate whether Gates took the idea from Steve Jobs, who had been working with Gates on a GUI for AAPL. But since those early days in Silicon Valley, while their personal friendship recovered eventually, the two companies have remained fierce competitors when it comes to their respective OS development.

At this point, one Windows OS or another runs on 85% of the desktops in the world. But the challenge is, desktops are quickly becoming an old technology as more mobile devices are becoming more widely adopted. In that space, Microsoft seriously lags behind AAPL and Google’s (GOOG) Android. The company’s attempt to transition to the mobile market was the ill-fated launch of Windows 8, with a completely new GUI specifically designed for the touchscreens on smartphones, tables and laptops. Microsoft is making good moves in the right directions now. And given that MSFT stock has been treading water for the past year, it might start getting some deserved positive attention from Wall Street again. In short, Microsoft is showing all the signs of making a strong comeback in coming quarters.

Source: InvestorPlace

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