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dallas on 15 April 2012
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famousringo said:
dallas said:

It's better than msfts revenue growth, which is mabey 10% for the last couple anyway.  As I mentioned, google will be catching up financially speaking, and that will bode some trouble for msft wanting to get into the tablet market and smartphones (if it hasn't already lost this) 


Nah, I don't really see it that way. Both companies have very deep pockets. Either one has the financial resources to execute whatever strategy they think best in mobile. The bigger issue is which one has better strategic resources and a better strategy, period.

Both companies have billions and are spending billions on mobile. Google has an advantage in having a huge, established user base. Microsoft has an advantage in intellectual property. Which is the better move, Microsoft's spending billions to fund Nokia, developers and Windows Phone marketing, or Google spending billions to acquire Motorola and move into hardware?

I'll say this, Microsoft's strategy outsources a lot of risk onto Nokia, Google's incurs a lot of risk on itself.

Actually, I'm leaving something out. Microsoft is trying to leverage its desktop dominance into tablets, and it's taking a pretty big risk to do it. Windows 8 is the most radical departure in the history of the desktop GUI, and it risks pissing off a lot of desktop users if MS doesn't get it right.

 

I've found basically the same forecasts all over the Internet, goog is going to grow at twice the rate of msft...

Here is what the analysts at CNN Money have to say:

 

Msft 

Earnings growth (last year) 28.1%

Earnings growth (this year) -0.05%

Earnings growth (next 5 years) 9.30%

Revenue growth (last year)  11.94%

 

Google 

Earnings growth (last year) 38.48%

Earnings growth (this year) 17.38%

Earnings growth (next 5 years) 17.65%

Revenue growth (last year) 29.13%

 

If logic is important to you then realize that a lot of people are expecting google to grow faster than msft, and given that this pattern will remain applicable, will eventually surpass msft.