Microsoft will eventually ‘crush Google’ in smartphones – Charles Sizemore

Covestor manager Charles Sizemore went on CNBC Friday to discuss Microsoft’s earnings results, its outlook, and its potential investment in Dell as part of a private equity deal. Charles also provides some more color on his controversial position that Microsoft’s Windows Phone will eventually muscle out Google for dominance in the all-important smartphone market. Here’s the full video:

Disclosure: Charles Sizemore is long MSFT as of 1/25/13 in his Dividend Growth model

The investments discussed are held in client accounts as of January 25. These investments may or may not be currently held in client accounts. The reader should not assume that any investments identified were or will be profitable or that any investment recommendations or investment decisions we make in the future will be profitable.

  • richyoung

    Hilarious headline. Read it when you sober up.

  • Terrence Schaefer

    Microsoft is not good at developing and marketing hard goods. No way this is going to happen.

    • Travis Bruno-Erck

      Apple is just good at marketing. I beg to differ they develop anything on their own. You do realize there product is nothing more than a bunch of licensed products slapped together right? Siri is not there work, maps is not there work, neither is Bluetooth. The only thing that is their work is the nice shiny trim and that’s all.

    • Wagner dos Anjos

      What about XBOX 360?

      • Cliff Eden Gardner

        X-Box One will run all that momentum into the ground.

  • dack maddy

    Never, never, never going to happen.

    • Travis Bruno-Erck

      They said that about Windows as well. And history does repeat itself.

      • Dima Habenko

        What history? Do you even know what you are talking about? MS-DOS was the beginning for MS and at the time there was little to no competition. Especially, considering IBM was pre-installing MS-DOS to all their PCs. By the time MS released first version of Windows, they were already well established to drive any competition off. Apple proved to be a challenge early on but their decision not to license OS was their blunder that limited appeal of Macintoshes to the corporate market and priced them out of consumer market.

        Now compare this to the Mobile OS market. Android rules the world, beating Symbian, Blackberry, and iOS – all formidable competitors. MS, on the other hand, has a string of disasters on their hands in Windows Mobile, dating all the way back to 2003. That’s 10 years of purgatory. They have zero competitive advantage now and have to compete against two of the most innovative companies of the past 20 years. Consumers do not want Windows phones as Windows brand is associated with slow and virus-ridden PCs. Enterprises en mass adopt “bring your own device” policy where they don’t give a damn what mobile OS users are having, as long as they can support and lock it down. That means that pretty much no matter what MS is going to do, they will continue to linger in the single digits, just like their Bing Search engine.

  • greg1172

    lol charles, you got me to click here for no other reason than your article title is so obscenely ridiculous and preposterous i had to drop by. You need to get out of your MSFT long position so you don’t have to write this stuff anymore!

    I’ve been in IT for 20 years. sold my first IT business in 2010, consulting, have several consulting and software companies now. I know the IT space and I assure you – Microsoft will NEVER be a player in the smartphone business. they are nothing more than a footnote now. Microsoft has failed at almost every strategic opportunity and if not for its corporate software to fund all these blunders, would be another Rimm. Once Google and Apple finish taking the PC market away from Microsoft in the consumer market, it will do the same to the corporate side.

    thanks for the laugh though!

  • Irvin San Juan

    This guy is obviously wrong… MS products are doomed to fade away. Younger generations of consumers no longer agree with MS vision of what the PC is. PCs are no longer machines who’s primary role is to produce documents, spreadsheets or edit media in, sure they still should do that well but the main selling point of pcs now to younger generations is to consume media, apps, and avail of strong background services like social web, maps, email, and search. Microsoft doesn’t do any of the new things well. Consider that Hotmail/outlook is inferior to gmail, skype is inferior to Google+ and hangouts (in functionality and availability), MS online market is inferior to Google Play, Bing is inferior to Google search/google now, Bing maps is inferior to google maps (in everyway), IE is inferior to Chrome in every way (not arguable). Looking at user-base, windows dominated the PC/Laptop market for 20 years, its users have gotten older and a core still believes in the old selling point of PCs (MS office and some web ability), their base lacks the following of youth and a strong developer community (no matter how many times Steve Ballmer yels “developers developer developers…”. Android evolution was brought up in great part by the developer support and a community of hackers, the lack of these is the reason why windows phone will never grow and evolve, it may capture some part of a tech averse niche that will make it impossible for windows to grow and develop the windows phone platform because these niches don’t like changes and updates. There is simply little or no interest on MS products by younger generations of users.

  • dogman67

    …Yes microsoft will outsell google phones ONLY if they make Just Code Pink left handed ones…
    …But then google will make the same only cheaper and better…etc…LOL…….