Microsoft revenue dips, Apple gaining ground

It doesn’t look like Microsoft is having a good time right now; their last quarterly financial results show a shortfall of about $1 compared to projections and a year-over-year decline of 17%! Before you start to write the MS obituary, remember that they are still a highly profitable company with a lot of cash tucked away in the bank and a huge user base. However, Redmond has never experienced year-over-year declines like this before, so what’s going on?

As you’d expect, executives are blaming the economy: home users are short of cash and companies are sticking with what they’ve got; after all, it works! Given the current climate it would be easy to accept that answer, however…Google is doing well , albeit after a few dips in share price, as is Apple. In fact, Apples share of the high end computer market is growing which means the money to buy high spec computers is out there but it’s not being channelled in the Microsoft directions! This point becomes even more interesting when you realise that although Apple sells to the mid to high end market, historically, they have never held the majority stake.

Windows is at the core of everything Microsoft does that makes money. They sell Windows, then they sell software that runs on Windows. As Windows goes, so goes Microsoft, and right now Windows is heading south.

The Windows OS seems to be losing ground at a rapid pace. Now, many will say ’so what?’ but the key here is that Microsoft builds applications that work on MS platfroms i.e Windows XP - lose the platform and you lose the installation base for your apps!

Many analysts are citing Vista as one of the main sources of Microsoft’s woes: expensive bloatware that needs a pretty high spec just to run (then there was the whole shambles around Vista certified hardware only being able to run Home Basic!). How many Windows users have you met that absolutely love Vista? Sure, Windows 7 looks good and runs well on moderately spec’d hardware but it may be a case of too little too late.

Then there’s Google. The announcement of the Google Chrome OS may, or may not, have sent shivers throught Redmond. Personally, I think that MS aren’t too bothered about Googles OS - at the end of the day Chrome will probably be designed around gathering even more information about your browsing habits so that the big G can send you even more relevant ads! Equally, Google are probably eyeing the announcement of the MS/Yahoo deal with an interested eye. The effective merger makes MicroHoo the second biggest search engine with about 28% of the market.

As I seee it, the major problem for Microsoft is diversification - too much, too soon. The release of the Vista memory hog didn’t help either. Right now, it’s time to get back to basics and deliver something that works, and works well. Once you re-capture the majority share you start to spred the tendrils.

Then again, I could be wrong. Microsoft may not have any plans for the future release of OSes - after all, they seem to be putting a lot of money into SaaS (just like Google). It’s food for thought….

Popularity: 81% [?]

Google Chrome looks to have done a good job of reigniting the browser wars that many of have long since forgotten Sure, FireFox is doing a good job and has picked up significant market share but the recent announcement of the Chrome OS looks set to upset the apple cart…again.

So far, Chrome has managed to garner a respectable market share of nearly 2 percent which may not seem like a lot but you have to remember that it was only launch back in 2008. The main disadvantage that Chrome has is that it’s not bundled into an OS like Microsofts Internet Explorer or Apples Safari but that is all changing. Google recently announced that they are building the Chrome OS designed specifically to fun on those feisty little netbooks that seem to be all the rage right now. This could give Chrome a significant advantage the developers favourite, FireFox.

Google has also been working hard to emulate features seen in other browsers - plug-ins, bookmark management, print preview, and all the other gizmos that nobody really uses! In addition, they’re working on greater security and faster performance when running applications written in the JavaScript (such as the ability to kill of a tab that has hung).

One of the most significant announcements to come from the search giant is the current development of its O3D plug-in which allows for hardware-accelerated 3D graphics into its Chrome browser. The idea behind this plug-in is to further Google’s ambition to speed up the transformation of the internet from a static medium into a foundation for applications - think Google Apps. Another ongoing project is the Google Native Client, which allows Web applications to take advantage of a computer’s native processing power.

In short, it looks like Google is progressing with their aim of moving your desktop and applications onto the web, a sort of cloud computing gargantuan.

Are we going to see a return of the browser wars? Probably but nothing compared to the early days of IE. Google has a plan for the Chrome OS and it isn’t just about being the best web browser. Watch this space.

Popularity: 71% [?]

LED TV models from Sharp and LG

LED TV’s will lead the way, apparently! A recent report published by Reuters suggests that sales of LCD TV’s will rise by 21% during the course of 2009 (expected figures of around 127 million units compared to 105 million sold in 2008), spearheaded by the launch of a number of LED models from the likes of Sharp and LG.

Admittedly, the technology has been around for some time now but many manufacturers seemed reluctant to invest during an economic downturn. This left Samsung in a position to grab the lions share of the market with a new range of backlit flat screen TV’s. But times are changing. LG and Sharp have announced that they’ll be joining the party with a selection of LED and wireless TV models. Like Samsung, the new models feature full backlighting and deliver huge improvements in picture and image handling.

The LED tech also allows manufacturers to build a smaller TV (some models are just over an inch thick), as well as better picture due to greater contrast and colour.

Both LG and Sharp have said that they believe LED TV technology will grab the lions share of the LCD market over the next few years. Currently, prices are still relatively high but as LED backlighting becomes the norm, the prices are predicted to fall, becoming almost equal in cost to the standard CCFL counterparts by about 2011.

I’ve actually spent some time looking at Samungs 32 LED TV offerings and I have to say that they are truly amazing! Roll on the price drops.

Popularity: 56% [?]

…but only in the US. It would appear that some of Sharp’s liquid-crystal display televisions and computer monitors are infringing on a patent owned by Samsung Electronics Co., says a U.S. trade agency.

Samsung, the world’s biggest maker of LCDs, won a ruling from the U.S. International Trade Commission that basically says Sharp products infringe one of its patents. The legal fight between Sharp and Samsung has been going on the in U.S. and Japan for some time now and this ruling represents a pretty big setback for Sharp.

In site today, The ITC has posted a a notice on its Web stating that unlicensed Sharp LCD devices (this includes display panels and modules) and LCD televisions made overseas by, and using, Samsung’s patented invention should be banned from the U.S.

There’s is good news to come out of this: the ban could be reviewed President Obama, and there is an appeal in progress. Sharp will not comment until full details of the decision are announced. The case stems from a patent Samsung won in 2004 and is titled “Liquid Crystal Display having wide viewing angle”.

Luckily, I bought myself a new 32 LCD TV last month - won’t affect me!

Popularity: 39% [?]