What is the best way to invest in technology that is growing and changing rapidly? Perhaps the case is not at all, as the massive dip in Microsoft (MSFT) share price might indicate. Microsoft's latest operating system, Windows 8, has been met with mixed reviews and tepid sales.
However, the company's woes may actually stem from larger hardware trends in the personal computer market and mobile computing. Ten years ago, a desktop PC needed to simply be replaced after so many years. The hardware simply wasn't keeping up with the newest software.
Today, the most popular software comes in the form of mobile apps, Youtube, and video streaming. Computers today don't need more power than they did a few years ago, and if they do, a lot of the computing power can simply be offloaded onto the cloud. The PC market has slowed dramatically, but only because our need for what they do is also handled by other devices or servers connected to on the Internet.
However, the company's woes may actually stem from larger hardware trends in the personal computer market and mobile computing. Ten years ago, a desktop PC needed to simply be replaced after so many years. The hardware simply wasn't keeping up with the newest software.
Today, the most popular software comes in the form of mobile apps, Youtube, and video streaming. Computers today don't need more power than they did a few years ago, and if they do, a lot of the computing power can simply be offloaded onto the cloud. The PC market has slowed dramatically, but only because our need for what they do is also handled by other devices or servers connected to on the Internet.
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