Google, Microsoft Show Challenges Faced by Tech

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July 19 (Bloomberg) -- Bloomberg senior West Coast correspondent Jon Erlichman reviews disappointing results from Google and Microsoft and looks at the challenges the companies face. He speaks on Bloomberg Television's "In The Loop."

It's a big issue, especially when you enjoy such big profit margins.

Both google and microsoft are dealing with a larger issue, which is this move from pc's to the mobile devices.

In the case of google, the story is about shifting your advertisers from traditional desktop search ads to on your mobile devices.

They have done a lot of that.

The challenge is getting the same advertising rates on the new devices.

In the case of microsoft, it is an easier story to understand.

With more people using pc's, it did not hurt them too much up till now.

We also learned about microsoft's struggle.

Tell us about that.

How bad are things really over at microsoft?

Windows 8.1, is it suggesting any kind of corner of hope?

The biggest challenge for microsoft is to have such an enormous business in windows that still brings in such an enormous amount of revenue today that when you do these other things -- they did a major reorganization, they're trying to stay focused and get to that next generation.

It is really tough.

We saw that with intel.

Intel still makes a lot of money from the traditional pc business.

Thank you so much, jon erlichman.

This text has been automatically generated. It may not be 100% accurate.

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