This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

How Google Clobbers Microsoft

What about the smartphone? I actually think Windows Phone is an excellent product, with the OS performance easily holding its own against the iPhone and Android. The problem is that being equally good -- or even slightly ahead -- is not likely good enough.

Microsoft is late to market, and many of its cloud service tie-ins are arriving late to market, or aren't there at all. That said, Microsoft should be a player here -- far, far behind Google and Apple.

This brings us to Windows 8 for the PC. Do your friends salivate at the idea of upgrading to Windows 8? No and neither do mine. Some are curious to try it, as they have some hope that it might turn out to be something interesting. Sadly for Microsoft, the people who have tried a Beta version have almost uniformly sworn to never get it, running into the arms of Apple and Google instead.

I like some of Microsoft's products. Windows 7 was a success. Windows Phone is a solid product. Skype is dominant. The Xbox 360 is best in class. Outlook has no decent competitor from Google or Apple. However, these positives are not stemming the overall tide.

The tide carries a market share shift in only one direction: Out from Microsoft, and into Google and Apple. Apple has been the stock market's darling for a few years now, and for good reason. Google, however, is coming on strong, taking market share from Microsoft Office and other cloud services.

When Windows 8 largely fails in the coming months, as I expect it will -- lack of interest in an upgrade cycle -- and Google makes its push for the Chrome OS PCs (Chromebooks and Chromeboxes), people will see much more clearer how Google's growth rate will continue to be vastly superior to Microsoft's. For Google, Apple is the toughest competitor -- not Microsoft.

At the time of publication, the author was long GOOG, AAPL and FB, and short MSFT.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

3 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,172.68 -107.06 -0.62%
S&P 500 1,994.29 -16.11 -0.80%
NASDAQ 4,527.6890 -52.10 -1.14%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs