“Worldwide PC shipments totaled 89.8 million units in the fourth quarter of 2012 (4Q12), down 6.4% compared to the same quarter in 2011 and worse than the forecasted decline of 4.4%, according to the International Data Corporation (IDC) Worldwide Quarterly PC Tracker. Although the quarter marked the beginning of a new stage in the PC industry with the launch of Windows 8, its impact did not quickly change recently sluggish PC demand, and the PC market continued to take a back seat to competing devices and sustained economic woes. As a result, the fourth quarter of 2012 marked the first time in more than five years that the PC market has seen a year-on-year decline during the holiday season.
So, tablets and smartphones are not a flash in the pan. M$’s OEM revenues will take a hit unless M$ raises prices, making their stuff even less competitive. Further, USA, M$-lover supreme, was down to less than 19% of PCs shipped. In 2011 USA was near 22%. M$ and friends are losing their grip on IT.
Morgan Stanley downgraded MSFT to hold:
“This weak PC market will not only hurt Windows 8 sales, they wrote, but also the new version of the Office suite — Office 2013 — which is due to ship this quarter.
In addition, the Morgan Stanley analysts have been unimpressed by the first sales wave of Windows 8, which began shipping in late October.”