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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Apple, Microsoft Need to Innovate, If They Can

NEW YORK (TheStreet) -- Accuse me of speaking out of both sides of my mouth. If that's what we call it these days, I'm not only guilty as charged, but proud of it.

In fact, I have an article forthcoming on the tragedy of pundits and peanut galleries portraying critical and reflective thinking as "flip-flopping" and "double talk," particularly in politics and the stock market.

But first, we must deal with the schizophrenia that surrounds Apple (AAPL) and Microsoft (MSFT).

Relative to Apple's greatness and Microsoft's mediocrity, it absolutely is all quite schizophrenic.

Where's the Innovation?

Talk about having trouble discerning reality.

Pandora (P) leads the Internet radio space. It continues to pioneer personalization and discovery.

Over the last year or so, lowlifes such as Nokia (NOK) and Research in Motion (RIMM) to more logical players like Clear Channel (CCMO) have introduced little more than shells of Pandora's service. Copycat after copycat has emerged, yet Pandora's audience, ratings and revenue continue to grow.

Now, rumors indicate that Apple might throw its hat in the same or a similar ring. Microsoft made its entrance official this week with xBox Music. Brilliant, enter a category somebody else not only created, but dominates and fail just like you did with Zune.

As I Tweeted on Monday, I am allowed to disagree, even vehemently, with CNBC and TheStreet's Jim Cramer, who thinks xBox Music is a Pandora killer. Yes, Jim lets dissent flow freely, even deep inside Cramerica.

In all seriousness, if you think for a second that Microsoft presents any threat whatsoever here, just examine the lowdown on the cost and effort associated with subscribing to xBox Music, courtesy of a Web site dedicated to gaming, IGN. Final verdict: xBox Music is Useless on xBox, but it could possibly, maybe, um, you never know turn into something in 2013 if everything just happens to fall into place for Microsoft from a mobile standpoint.

This move by Microsoft (and possible move by Apple) is the poster child for a lack of innovation at the top.

The bull case for MSFT sounds more like a plea.

On CNBC's "Squawk on the Street", Richard Sherlund of Nomura Securities said the following about Windows 8:

  • It will have a slow roll out.
  • It's "not terribly seductive ..."

1 of 2

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 16,982.59 +22.02 0.13%
S&P 500 1,978.91 +0.57 0.03%
NASDAQ 4,444.9090 -4.6550 -0.10%

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