Things are not looking up for Microsoft Corporation(NASDAQ:MSFT) this week. It started with Google Inc(NASDAQ:GOOG) capturing its position as the third most valuable company in the U.S. in terms of market capitalization, although the rank has been reclaimed by Microsoft. But the overall image of the company does not look promising as it is losing market shares and its position in the tech world with each passing day due to decline of consumer demands.
Google and Apple shares have shot up by 14% and 62% respectively this year, whereas Microsoft’s went up by 12%. Its previous record for the last decade shows a flat growth of its stocks. During the last 10 years, Google showed a figure of 27% and Apple 313%.
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The major blow was yet to come. After the company revealed its latest version of Internet Explorer to advertisers, they expected favorable reviews about their new offering. But advertisers criticized it and were unhappy about the browser's do-not-track default setting, as it will not allow them to keep tabs on consumer behavior.
Head of Advertising Rik van der Kooi is firm about Microsoft’s approach about “customers first”, but advertisers have argued that if they are unable to monitor customer preferences, they can’t develop content and offerings to their liking or identify target groups. Executives from top names worldwide such as Coca-Cola, Ford and Walmart have written to Microsoft CEO Steve Ballmer, stating that the new setting on the browser, will harm competition, inconvenience customers, and hamper growth and innovation of
But Microsoft’s main problem is its future prospects in a market that is becoming more competitive everyday. They should discuss strategies and effective marketing techniques to strengthen their position.
In other news, Rumors say that Microsoft Corporation(NASDAQ:MSFT) is making its own smartphone that will operate on Windows Phone 8, a move that is likely to help competing against the iPhone. This would again put the firm in competition with its hardware partners.
Shares of MSFT ended higher by 0.67% to close at $29.86.