UPDATE 2-Microsoft CEO unconcerned with Apple market cap

* CEO Ballmer says focus on developing good product line

* Firm to speed plans for entertainment, devices business

* Apple overtook Microsoft market value on Wednesday
(Adds comments on executive departure, recasts headline)

NEW DELHI, May 27 (BestGrowthStock) – Microsoft Corp (MSFT.O: ) Chief
Executive Steve Ballmer was unperturbed a day after rival Apple
Inc (AAPL.O: ) shot past his firm as the world’s biggest tech
company by market value and said his aim was to develop a good
product line and earn more profits.

Microsoft, whose operating system runs on more than 90
percent of the world’s personal computers, has not been able to
match growth rates from its heyday in the 1990s.

Microsoft stock is down 20 percent from 10 years ago, while
shares of Apple are worth more than 10 times what they were 10
years ago, as it has profited from revolutionizing consumer
electronics with its stylish, easy to use products such as the
iPod, iPhone and MacBook laptops.

Ballmer, on an Asian visit, told reporters in the Indian
capital that Microsoft is the most profitable technology firm
and a fierce competitor to anyone.

“My focus is on … what we should be doing to our product
line, where do we go, how do we make products more innovative,”
he said in response to a question on Apple racing past it in
market value.

“It’s a long game, we have good competitors … we too are a
very good competitor,” Ballmer said. “We are executing very well
and that is going to lead to great products and great success.”

Microsoft is betting on an updated version of its Office
software it launched earlier this month and a completely new
software system for phones called Windows Phone 7, which is
scheduled to hit the market in a new range of handsets for the
holiday shopping season.

“I am optimistic,” Ballmer said.

GAMES AND MOBILE PHONES UNIT

Robbie Bach, head of Microsoft’s video games and mobile
phones unit, is retiring in a management shuffle, as Ballmer
tightens his grip over a division steadily ceding ground to
rivals.

The departure of the 22-year veteran, credited with
launching the Xbox in 2001, comes as Microsoft’s mobile efforts
are being brushed aside by Apple’s iPhone and Google Inc (Read more about Google Stock Analysis)’s
(GOOG.O: ) Android operating system in a fast-growing, but
increasingly crowded smartphone market.

From July 1, the two senior vice presidents in charge of
games and phones will report to Ballmer.

“I won’t predict some massive change,” Ballmer said. “I
don’t sort of foreshadow any change in direction. We just have
to accelerate plans.”

The entertainment and devices unit is the fourth-largest of
Microsoft’s five operating units — behind its Windows, Office
and server units — and is on track to post more than $8 billion
in revenue for the year ending June 30.

Investment Analysis

(Reporting by Devidutta Tripathy; Editing by Ranjit Gangadharan
and Derek Caney)

UPDATE 2-Microsoft CEO unconcerned with Apple market cap