Ballmer's reorganization plan has one hidden goal, he says

Jul 13, 2013 14:16 GMT  ·  By

It's no surprise that Ballmer wants to make Microsoft a much more profitable business with his new organization plan, but an analyst claims that the CEO has a different goal in mind.

Colin Gillis, an analyst at BGC Partners LP in New York, has told Bloomberg in a short statement that Microsoft is actually losing ground in the tablet and mobile phone businesses, so the company's new reorganization strategy is part of a much more ambitious plan to get closer to Google and Apple.

“First and foremost this is an attempt to address the fact that they are behind in tablet and mobile. They’re effectively saying, ‘We have some problems we need to address and we need to make radical changes to accomplish it,’” the analyst was quoted as saying.

Indeed, Steve Ballmer has said that Microsoft needs to invest much more in the hardware industry, so new projects for Xbox, Surface, and Windows Phone are under development right now.