Microsoft: reverting to the mean
Reverting to the mean speaks to the iron law that past performance will not be indicative of future returns.
Government Motors is an example of reverting to the mean in the automotive business and Microsoft seems to be reverting to the mean in the technology realm.
One Apple product, something that didn’t exist five years ago, has higher sales than everything Microsoft has to offer. More than Windows, Office, Xbox, Bing, Windows Phone, and every other product that Microsoft has created since 1975. In the quarter ended March 31, 2012, iPhone had sales of $22.7 billion; Microsoft Corporation, $17.4 billion.
The lesson of the linked article? Leadership matters.