NEW YORK — Microsoft CEO Steve Ballmer, known as much for his zany personality as his business discipline, will leave a legacy of mixed results and a monumental challenge for his yet-to-be-named successor.
Ballmer announced on Friday that he plans to retire sometime in the next year. He has worked for the company for 33 years. After helping founder Bill Gates transform Microsoft from a tiny start-up into the world's most valuable company, Ballmer took over for Gates in early 2000.
The new millennium marked a dark period for Microsoft. As smartphones and tablet computers began to eclipse personal computers, detractors say Ballmer didn't take early threats from Apple and Google seriously enough. Ballmer consistently pooh-poohed Google as a one-trick company and in 2007 declared: "No chance that the iPhone is going to get any significant market share."
Ballmer's jeers proved premature. Google quickly made important inroads in Internet video, online maps, email and mobile computing and contributed to the damage that Apple's iPhone and iPad have done to Microsoft and its partners in the PC market.
Microsoft, along with other companies that thrived in the era of personal computers, is scrambling to transform its business as people increasingly come to rely on smartphones and tablets.
Although it derives some three-quarters of its revenue from sales of software and services to businesses large and small, Microsoft has failed to capture the imagination of consumers who have become more enamored with mobile gadgets than PCs. Response to the newest version of its flagship Windows operating system, Windows 8, has been lukewarm.
As Microsoft Corp.'s stature diminished its market value followed. When Ballmer took the helm in January 2000, the company was worth more than $601 billion. Today, its value is less than half that amount, at nearly $270 billion.