Microsoft Corp Chief Executive Steve Ballmer defended his company's
record on innovation and financial performance at the annual
shareholders' meeting, but conceded that he should have moved faster to
get into the booming tablet market dominated by Apple Inc's iPad.
Bill
Gates, co-founder and now chairman of the world's largest software
company, was one of the first to champion tablet-sized devices more than
10 years ago, but Microsoft failed to come up with a product that
worked as well as the iPad. Gates was silent throughout the meeting,
attended by about 450 shareholders.
"We're innovating on the seam
between software and hardware," said Ballmer, asked why his company had
fallen behind rival Apple. "Maybe we should have done that earlier."
A month ago, Microsoft launched the Surface tablet - its first own-brand computer - but has not revealed sales figures.
In
the tablet market, "we see nothing but a sea of upside," Ballmer said,
an acknowledgement that until now Microsoft has effectively had zero
presence in the tablet market.
"I feel pretty good about our level of innovation," he added.
Ballmer
said smartphones running Microsoft's new Windows software were selling
four times as much as they did at this time last year. Microsoft has
never given sales numbers of Windows phones, primarily made by Nokia,
Samsung and HTC.
Windows currently has 2 to 4 percent of the
global smartphone market, according to various independent data
providers. Its overall market share will not likely grow in proportion
to its own sales, given that sales of other smartphones - mostly running
Google's Android system - are also growing quickly.
Ballmer,
flanked by Gates and Chief Financial Officer Peter Klein, was asked by
several shareholders to explain Microsoft's lackluster share price,
which has been stuck for a decade, and has been outperformed by Apple
and Google Inc stock in recent years."I understand your comment," he
told one shareholder. He went on to explain that Microsoft had "done a
phenomenal job of driving product volumes" and was focusing on profiting
from that growth.
He suggested that whether investors recognized that value at any given time was out of his hands.
"The
stock market's kind of a funny thing," he said, adding that Microsoft
had handed back $10 billion in dividends and share buybacks to investors
in the last fiscal year.
Several shareholders at the meeting in
Bellevue, an upscale suburb of Seattle, complimented the executives on
how they had grown and managed the company.
Microsoft's shares
rose almost 18 percent during fiscal 2012, which ended in June of this
year, compared with a 3 percent rise in the Standard & Poor's 500.
Despite such fluctuations, Microsoft's shares stand around the same level they did 10 years ago.