Bing might be more popular than ever; however, as Microsoft is finding out, it costs a lot of money to buy friends. In its latest quarterly earnings report Microsoft said it earned $84 million dollars in online revenue mainly from Bing. But Microsoft's online services expenses grew by nearly $292 million, according to analysis by Business Insider. You don't have to be an economist to see that spending an extra $292 million to make $84 million is not a viable long-term business strategy.
Tablets such as the iPad and Motorola Xoom may not be sold as widely as PCs running Windows, but the new devices are certainly growing in popularity with users. Apple has sold 19 million iPads since launching the device in 2010, and most Apple competitors are looking to Android to develop an iPad challenger. Microsoft, meanwhile, appears unwilling to give up on Windows as a tablet OS. The Windows 7-based HP 500 Slate was panned for trying to put a traditional mouse pointer interface on a touch-based device. Nevertheless, Microsoft plans to show off a Windows 8 tablet in June, reportedly with an interface inspired by Window Phone 7. It's strange the company has shown little interest in using the actual Windows Phone 7 OS to challenge the iOS-based iPad and Android tablets, despite the obvious parallel between the three mobile operating systems. Until Microsoft has the guts to put out a Windows Phone 7 tablet, it's out of the fast-rising tablet game.
Losing: Windows Phone 7