Microsoft began this trek last year when it announced the Surface tablet, which the company thought would narrow the gap between itself and Apple.
Instead, with Windows 8 having become a relative flop, the gap has only widened. There's no question the failure of both Surface and Windows 8 is the reason why Ballmer is leaving. Disagree if you wish. But I don't believe the next CEO wants to take the helm being behind two 8-balls (Windows and Surface) or Google and Apple -- take your pick.
By buying Nokia, Microsoft believes it can capture 15% to 20% of the smarphone market by 2018. Given that Microsoft currently owns only 3% share, this is a pretty aggressive bet, if you ask me. Also, it assumes that Apple and Google are just going to sit on their hands and let that happen.
Investors, meanwhile, aren't wasting any time casting their opinions. Given that shares of Microsoft have been down by as much as 5% this morning, the market's not buying it -- the same way that the market never bought into Surface or Windows 8.buying BlackBerry (BBRY). At the time of publication, the author was long AAPL. Follow @saintssense This article was written by an independent contributor, separate from TheStreet's regular news coverage.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV