Microsoft's Mobile Morass, Part 1

If sales and financial performance say anything, Microsoft has generally corrected its desktop OS course with Windows 7. But the company's growth in mobile appears seriously stunted. The technology it's building into Windows Phone 7 may make it some friends in the enterprise, but the software won't hit the market for months. In tablets, Apple's claimed a big lead, and it looks like Android's already out of the gate too.

Microsoft (Nasdaq: MSFT) recently announced record revenues of US$16.04 billion for its fourth fiscal quarter of the year, which ended June 30. This was 22 percent up year over year. Operating income, net income and diluted earnings per share for the quarter were up 49 percent, 48 percent and 50 percent, respectively, year over year.

The company provided relatively conservative growth figures in its guidance for the first half of 2011.

Is that good enough? Most of its businesses are tied to the PC and server market, and the world is going mobile. This has led the Obama administration to devise a plan to double the amount of wireless spectrum available to carriers.

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