Microsoft's Era of Change

Microsoft is buying Nokia's devices and services unit for 7.1 billion dollars to accelerate the growth of their mobile business.The deal includes 10 years of access to relevant patents.
Nokia CEO Stephen Elop,who formerly worked at Microsoft,will return there-presumably to replace the retiring Steve Ballmer as CEO-and 32,000 other Nokia workers will be transferring to Microsoft as well.*
Ballmer and Microsoft have been laggards,said Matthew McCormick,portfolio manager at Bahl and Gaynor Investment Counsel.Ballmer's departure opens up so many doors.You're gonna see some capital return to shareholders,some new thought and leadership.We think there's gonna be more unlocking of value throughout the tech sector.
They need someone from the outside.They need to make a move.We have high expectations Microsoft is gonna do something big.
The tech sector has the best opportunity for growth going forward,and dividend growth.*
It's about accelerating our share position,to further accelerate our position with Windows phone,Mr.Ballmer said.Our partners in Windows phone have been nothing but enthusiastic.We're certainly focused on being a devices and services company.
Nokia accounts for over 80% of the Windows phone volume today.Its hardware,enterprise and distribution staff is truly world class.It's a big transformation,but that's how you have to be in the tech business,Mr.Ballmer noted.
Microsoft(MSFT)

Microsoft Sticks With China

Microsoft CEO Steve Ballmer said it's clear the company is gonna operate in China.China ought to be a source of growth.Intellectual property protection is very bad there,however;it is abysmal.It's got to change.China has laws on the book,but it's important that they be enforced.If we're gonna create jobs in the U.S.,we're gonna have to export our ideas to China.
Cyber attacks won't be stopping Microsoft.Cyber attacks and occasional vulnerabilities are a fact of life,Mr.Ballmer observed.Microsoft has a whole group of people that respond to them in real time.
Microsoft sees business conditions as still being relatively flat.Fifty percent of capital expenditure goes into IT.There's been a little bit of a rebound in the consumer front.There are glimmers of hope in B2B,but it's still tough,the Microsoft executive noted.