Microsoft doesn’t have a Jony Ive to save them

Shares of Microsoft Corp slid on Tuesday after the surprise departure of a key executive, who analysts said marks the loss of the driving force behind the company’s biggest product.The shares were down 2.8 percent in afternoon at $27.21.

Wall Street took Apple’s executive changes in stride when they learned that Jony Ive and Eddy Cue would assume some of Forstall’s duties. It had a calming effect on everyone. Microsoft, indeed most companies, don’t have that.

  • stoneymonster

    I’m not sure Wall Street took it in stride. A decline from 700 to 535 (admittedly the news came after the slide started, but still) isn’t really a calm reaction.

    • Well there was more at work there. Between the maps issue and at least one incident of a trader actively trying to depress the stock value and buying it up later you cannot compare them imho.

    • Alex

      The stock was about 620 when the news broke. It’s at 545 right now, not 535. Just saying, facts matter. Most of the decline, however, are due to supply issues. Apple isn’t keeping up with demand, which means that their revenues will be less than what they could have been, and some customers will buy a competing phone instead. Plus iPad mini has lower margin and everyone knows it will sell like hotcakes. Again, less profit. That is the real problem affecting the stock.

      • There’s a lot of doubt about Apple’s ability to execute right now. They are definitely making a lot more sloppy mistakes since the untimely death of Steve Jobs. So far they have had a fairly minmal impact since everyone knows the product pipeline would ensure Apple would continue to succeed for years after SJ’s death. But we’re now entering a critical stage where the team minus SJ must start executing for themselves.

        I have a feeling Apple will look like the short opportunity of a lifetime in 10 years. By that I mean, those who still curse their misfortune for not buying AAPL at $10 and less will live to regret not shorting them in the $500-$600 range.

        • Nat5150

          What sloppy mistakes have they made since Jobs’ death exactly, that they wouldn’t have likely made even if he were still alive?

          Maps? They probably would have severed ties with Google anyway (and it was probably at least in the planning stages before Jobs’ death). That’s a strategic decision that they couldn’t really have made any other way. Sure, they could have been better but how much better? Just because Google has several years’ head start doesn’t mean Apple should just concede. Let’s see where maps are at in 2-3 years. I’ll bet Apple has caught up and maybe even surpassed Google.

          The iPad Mini? Again, most of the stuff people complain about is likely a strategic business decision, not a mistake. No Retina display, etc.

          The iPhone 5? Seems like a pretty good device to me. I don’t think most people think it’s a mistake.

          I do think it’s pretty hard to guess where they’ll be 10 years from now, but I think they’re going to be pretty solid for the next 3 or 4 years at least.

  • I wouldn’t call Jony Ive someone that will “save” Apple since we’ve seen none of his ability to innovate on a UI. His talents in this area are TBD although I do expect him to do really well.

    • Ive is the most overrated man in the technology industry. If Apple are relying on him to turn this sinking ship around they are doomed.

      • He is a great industrial designer so I wouldn’t go as far as to say overrated. He also has the “low tone, soft speech” pattern down to make you utterly believe he just re-invented something great! 🙂

        • I really do think Apple overplay his influence to suit image and their marketing campaigns. He’s definitely done some good work at Apple through the years, but the god-like status people bestow upon him is too much imo.

          • Agreed on god-like status but his knighthood is well deserved. lol

  • Domicinator

    Wall Street will ultimately herald the departure of Sinofsky as a good thing and the stock will come right back. They will continue to pound on Apple and punish the stock over and over because of Forstall and other perceived problems.

    Before the iPad Mini released, they were voicing concerns that Apple needed it. Now that it’s out, it’s something Apple shouldn’t have released. iPhone 5 needed to have a bigger screen, a redesign, and LTE to be a success. It got all three of those things, and Wall Street says, “that’s all we get?” Pepper in some “Steve Jobs would have never” articles, and there you have it. The media and Wall Street are in full on bash Apple mode.

    I haven’t been an Apple lover long enough to know if this is just the normal media BS or what (I’ve only been buying Apple stuff since 2010), but whatever it is, I don’t understand it.

    • Alex

      Here you go, Domicinator, for some historical perspective. As to why, I think it’s simple: leader always gets the end of the shtick.

      • Nat5150

        Wow, I feel like I stumbled into some alternate internet universe. The comments on that Asymco post are some of the most intelligent I’ve ever seen.

        As for the leader getting the end of the stick, did Microsoft ever get bashed around as much as Apple does?

        I’ve been in this industry for a long time and wasn’t an Apple user until 2006. Before that, I was a dyed-in-the-wool Windows user and I don’t ever remember anywhere near as many stupid articles about them.

        Maybe they just didn’t spread as quickly before social media was so widespread, but Apple seems to get a lot more of this stuff than any other market leader I’ve ever seen.

  • Leo

    Spare us. Apple shared the news while the hurricane Sandy was about to reach the East coast – and Wall Street was closed. After that “Apple Inc. (NASDAQ:AAPL) stock recorded a new three month low of $591 (at at the time of this writing), after opening at $594 per share, the first time the company has traded below the $600 mark in over two months.”