In December 2000, Microsoft had a market cap of $510 billion making it the world’s wealthiest corporation. Almost a decade later, its current market cap value stands at $249 billion, with the likes of Facebook, Google and Apple overtaking the company that once dominated the tech industry by miles.
Kurt Massey, a former senior marketing executive of Microsoft, explains, “I see Microsoft as technology’s answer to Sears. In the 40s, 50s, and 60s, Sears had it nailed. It was top-notch, but now it’s just a barren wasteland. And that’s Microsoft. The company just isn’t cool anymore.”
Some people attribute Microsoft’s decline to Steve Ballmer’s failure as its CEO, internal strife that postponed or cancelled market-busting products or services but mostly its failure to offer innovative products that would hold audiences in awe.
While Microsoft continues to offer nothing new apart from upgrades of Windows, Office and servers that generates healthy profits, it shouldn’t be surprising that the profits generated by the iPhone alone now accounts for more than the total profits generated by all of Microsoft’s offerings as of 2012.
Yes, a product that didn’t exist five years ago. This statistic, as shocking as it is, tells you the entire story of the decline of Microsoft from being considered a tech icon to finding itself not being able to churn out a single innovative product since 1975.
And it’s no mere coincidence that they find themselves in the position (and for the very same reason) that led to IBM’s downfall – Cool is what tech consumers want.