Microsoft Failure Notice
Chris is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
Microsoft (NASDAQ: MSFT) needs to learn from an old movie. The movie, Braveheart, was popular in 1995 and was so popular it was made into a PC game. Now, granted Mel Gibson has fallen a long way since 1995, but the movie can still be considered a classic. Microsoft could learn a very important lesson about people from the movie. In the movie, one of the most motivating and remembered scenes is when William Wallace is about to lead his army into battle against a bigger and better equipped army. When he stands on the hill and yells “FREEDOM,” that was the defining moment in the movie. Everybody wants to be free and not suppressed; people want options and not to be locked down.
This is where Microsoft could learn from the movie and follow Apple (NASDAQ: AAPL) and Google (NASDAQ: GOOG), in order to make a huge comeback against a larger, better equipped enemy. Nokia Corporation (NYSE: NOK) recently released its new flagship phone, the Nokia Lumia 920, with the Windows 8 operating system. This phone looks great and has key features like the 4.5” Pure motion HD+ Display. The phone is priced at only $99 with a 2 year contract at AT&T. This is a great phone at a very low price. Microsoft can do better and has to if they plan to catch Google and Apple in the Smartphone war.
Amazingly Apple and Google understand the word “Freedom” as both sell unlocked versions of their phones. Now, Apple has been in the market longer and has people purchasing these unlocked phones on Amazon and EBay at three times what they would pay if they sign a 2 year contract. Google is coming out with its Nexus 4, which is unlocked, and can be purchased right for a mere $299 on the 8 GB model. What a lot of people have been looking for is a way to have the newest cell phone, but not be locked down to a long term contract with a carrier.
Microsoft has a great product, Windows 8, and Nokia's phone is a killer phone. Just imagine what ground Microsoft could gain if they offered a phone for $199 unlocked? Yes, you might lose a little money upfront, but the back end can be huge. Once people start using a particular system it is not easy for them to change and there is money to be made on applications, downloaded movies, cloud storage, and so forth.
In conclusion, Microsoft has a chance to make a comeback; all they have to do is take a huge step. They can move in the right direction by providing an inexpensive unlocked phone. If they are willing to give their phone away to the giant carriers, why not give it to the people directly? By providing an inexpensive phone people can sometimes forget the negatives, like very few applications compared to Google or Apple. Only time will tell if Microsoft will take a giant step forward, and if they do, they will be greatly rewarded.
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fitnessdad has Apple share but no other positions in the stocks mentioned above. The Motley Fool owns shares of Apple, Google, and Microsoft. Motley Fool newsletter services recommend Apple, Google, and Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.If you have questions about this post or the Fool’s blog network, click here for information.