Microsoft's Product Slide Continues

Microsoft launched the Surface table in October of 2012 and it has been an uphill battle ever since. The company managed to almost spend $1bn in advertising expenses to promote Windows 8 and the Surface. This is amazing if you consider that they only generated $853m in Surface revenue for all of fiscal 2013.
In reviewing Microsoft's 10k, I found some interesting notes.

From Microsoft's 10k

We will continue to invest in new software and hardware products, services, and technologies, such as the Microsoft-designed and manufactured Surface launched in October 2012. Investments in new technology are speculative. Commercial success depends on many factors, including innovativeness, developer support, and effective distribution and marketing. If customers do not perceive our latest offerings as providing significant new functionality or other value, they may reduce their purchases of new software products or upgrades, unfavorably impacting revenue. We may not achieve significant revenue from new product, service, and distribution channel investments for a number of years, if at all. Moreover, new products and services may not be profitable, and even if they are profitable, operating margins for some new products and businesses will not be as high as the margins we have experienced historically.

And this sums it up. Launching new products to remain competitive in the consumer market can be costly, especially if you describe your approach as speculative.

iWatch Launch Set for 2014?

According to the Financial Times, Apple is in the process of hiring “aggressively” for the iWatch project. Yes, all sign are pointing towards a wearable Apple device. Unfortunately, according to teh report it is more than a year away. I have been hearing about iWatch for at least 6-months. It seems strange that it would take Apple so long to produce a wearable device, especially because of the competition they face in other areas. Small companies like Pebble are selling wearable mobile  phone companion watches - that sync with the iPhone or Andriod phones. The quick success of Pebble
illustrates that there is a market for wearable mobile devices. Apple's design reputation is second to none - but it is unusual to see them arrive late to the party --- they usually create the device category.
As a sidebar, I really hope that I can get an iWatch from Rolex., yes an iRolex!

 

Moto X May Make Motorola Relevant Again

With an expected $500 Million dollar marketing campaign to announce its arrival and Eric Schmidt public unveiling - does Motorola have a contender to fight back Apple and Samsung?
The Moto X is expected to hit the street at $199 with a contract. According to the rumor mill, it will boast  the latest version of Android (4.2.2) -NFC, 4G LTE MIMO dual antenna,  Bluetooth 4.0 + EDR, 802.11ac Wi-Fi and a 720p OLED display.
Maybe Motorola is back and relevant again.