October 25, 2013
Steve Ballmer may soon be gone, but the company he is leaving behind continues to stumble in the post-PC world. On Thursday, Microsoft reported Windows revenue was down 7 percent year over year. At the same time, they noted that the overall PC market might have stabilized. Not so fast says one analyst, according to AppleInsider. Maynard Um of Wells Fargo believes that Microsoft could be facing another round of hurt thanks to the upcoming launch of Apple’s iPad Air and iPad mini with Retina display. As a result, whatever stabilization in PC sales that does exist will not continue. Microsoft believes that “competitive pricing” on laptops this holiday season will help sales rebound. Um doesn’t believe price is the primary issue in the PC market. As a result, he notes, “The introduction of new Apple products and other competitively priced tablets could adversely impact consumer PC sales.” As AppleInsider rightly concludes:
The rise of so-called "post-PC" devices, like Apple's iPad, has caused a dramatic shift in the personal computing space. Though Windows remains the dominant platform on traditional computers, Microsoft has fallen behind in the growing tablet space, with some data suggesting Microsoft's share of overall personal computing sales has plummeted from 90 percent to 33 percent over the last five years.Earlier this week, Microsoft’s Frank Shaw criticized Apple’s newest iPads, and Cupertino’s decision to revamp iWork, and make it free to existing customers. Shaw said unlike Apple, Microsoft “understands how people work better than anyone else on the planet.” Ballmer announced his retirement from Microsoft in August. To date, no replacement has been tapped. See also: Finding An iPad mini With Retina Display For The Holidays Might Be A Challenge, and Wall Street Consensus: Apple Sold 15 Million iPads In September Quarter.