Microsoft profit slides on slumping PC sales

[PGHammer]

I totally agree with you the only reason for low adoption of OSX is Apple restriction to put OSX on their over priced hardware. But with Maverick, Apple is going free on OS front and which I think is laying up positive foundation for mass adoption. Economically a typical good configuration hardware last for at least 5 years for average user. The same good configuration hardware will cost around $600-$800 on average. If someone has to buy windows twice for during the course of five year at average price of $150 then the total cost will be around $1,000 which might be at par with Mac range computers and then you don't have to deal with all those activation, antivirus and lots of other bloatware crap inherent in windows. 

 

You are also right in saying in today's time no one in right mind will replace windows with Android on productive machine. But Android is not meant to be on productive machine as it is meant primarily for content consumption and this clear cut differentiation is a strong point for Android as people know what to expect from Android unlike MS trying to shoehorn Desktop on 8 inch tablet and claiming it to be a productive machine. Never seen such a confused corporation. But growth of Android will open the doors of Linux wide open in near future. Technological landscape changes very quickly. Who would have thought just 5 years back that Blackberry will be in such a hot water or in just two decades, Apple which was on verge of bankruptcy and was kind of bailed out by MS, will  not only competing with MS but also beating MS with a huge margin. 

 

MS has gone too complacent and they are too big to carry their own weight. I don't care what MS fanboys believe themselves but market is giving signals to MS to either innovate in right direction or be prepared to keep loosing ground. 

Mavericks is free ONLY if you are upgrading from at least Snow Leopard (technically, on Apple's own hardware only - despite even Apple's hardware base being unchanged, for the most part, SINCE Snow Leopard).  And what exactly IS the "right direction", Auditor?  According to you (and those that share your opinion)  the only right direction is to NOT innovate at all as far as the OS itself goes.  No touch support in applications (despite more and more hardware with touch-supporting capability - and not just portable/mobile hardware, either), retention of pointing-device-centricity (despite there actually being some users that are keyboard-centric) - basically, stay where Windows 7 was.

 

While the technological landscape IS changing rapidly, we, as users OF that technology, don't want to change what we do with it, for the most part.  Not only has there been resistance to changes in Windows from 8 forward, the hew and cry over far more rapid changes in terms of MOBILE hardware is getting blowback as well - how much screaming has there been when it turns out your smartphone, or tablet, or other mobile device, can't get an upgrade to the latest version of Android/iOS/Windows Phone due to changes in what hardware that OS supports?  Mobile hardware obsolesces FAR faster than even portable PCs, let alone desktop-formfactor PCs - and consumers are decidedly unhappy with that.

 

How long will it be before we try to cage Android and iOS the same way we are trying to cage Windows?

[sinetheo]

I think the answer is yes.

 

Everyone here is right. lol

 

1. Windows 8 discourages people familiar with XP to upgrade and they think holy crap I have learn this?!

2. Computers can type things in word, load facebook, play cd's fine. There is no need to throw it out

3. Economy sucks due to this depression we are in. Windows 7 grew HUGE market share faster than any OS!! .. however, it is 100% true also that the pie slice it took is an overall smaller pie. So this this means enthusiasts and those still employed upgraded to leave XP FINALLY. While those with money problems did not, as well as die hards and grandma's  ... look up 1# and 2#. So yes everyone is correct. This is reflected in mac sales.

4. People use whatever comes on their computer. So if Linux was on half the marketshare would be 1/2 etc. However they tend to return them if turbo tax or their ancient version of corel cd creator wont work. But if a larger marketshare was there Joe Six pack would not care

5. Non professionals prefer tablets as their replacements. If they do not need to type spreadsheets for work they do not need a pc. PRofessionals who have money tend to buy both anyway.

 

There you have it folks. The pie is smaller even if upgrade paces are slowing down. The PC is turning back to its roots as enthusiasts are building more and more and buying less crappy dells. The people who did not use a pc until 1999 are the ones using XP still or switching to tablets. Ignore them as they only needed a computer for the internet and myspace aka now facebook. Waste of money if you do not do work or are a student.

[simplezz]

That's just incorrect. Windows will continue to exist for years yet, and with a new CEO and a fresh attitude, so will Microsoft. They'll be a strong contender in the market for a long while.

While it will continue in the enterprise for the next decade at least due to the fact that they lag years behind the rest of the world, in the consumer market, Windows is all but finished. Every Microsoft platform is shrinking in marketshare, and not by a small amount either.

Don't kid yourselves, universal Windows applications are going to bolster Microsoft's mindshare.

FTFY. After all, the apps only run on Microsoft platforms, which as I said above, are shrinking in marketshare. Therefore, it's impossible for mindshare to increase. Developers who are already targeting Windows, will be able to share more code between the disparate versions, but it won't make it anymore attractive to new developers if the target audience is shrinking.

[Max Norris]

While it will continue in the enterprise for the next decade at least due to the fact that they lag years behind the rest of the world, in the consumer market, Windows is all but finished. Every Microsoft platform is shrinking in marketshare, and not by a small amount either.

Got a source for this claim?  Everything I'm finding on Google says the exact opposite.  Phone/tablet sales are up sure, PCs have slowed down, to be expected.. cheap devices that have to be upgraded frequently drives fast sales.. doesn't mean people are throwing their computers into the garbage. 

[Melfster]

Got a source for this claim?  Everything I'm finding on Google says the exact opposite.  Phone/tablet sales are up sure, PCs have slowed down, to be expected.. doesn't mean people are throwing their computers into the garbage. 

 

 

Actually tablet sales are not that great this quarter.  It looks like they really leveling off.    

[Dot Matrix]

While it will continue in the enterprise for the next decade at least due to the fact that they lag years behind the rest of the world, in the consumer market, Windows is all but finished. Every Microsoft platform is shrinking in marketshare, and not by a small amount either.

FTFY. After all, the apps only run on Microsoft platforms, which as I said above, are shrinking in marketshare. Therefore, it's impossible for mindshare to increase. Developers who are already targeting Windows, will be able to share more code between the disparate versions, but it won't make it anymore attractive to new developers if the target audience is shrinking.

Windows is far "from finished." It still comes preloaded on popular desktop and laptop models.

Overall market share for Windows is quite stable.

[George P Global Moderator]

All MS is doing when talking about cloud and mobile first is in it's earnings call is show the market that it's more than just a "Windows OS" company.  Azure is growing quick and doesn't seem to be slowing down at all for example.   De-emphasizing the importance of "Windows" doesn't mean it's not important it's just not the key source of their revenues like it was 10-15 years ago.  I think it's clear with how they're making select versions of it free now.  Cloud services and devices be it consumer or business ones are where the company is going, Windows, as a OS will still be a part, it's just one of many instead of the major one it once was.  

[simplezz]

Got a source for this claim?  Everything I'm finding on Google says the exact opposite. Phone/tablet sales are up sure

Marketshare, not sales numbers, which inevitably go up in a growing market. Anyway:

Oh and back to Nokia, the Kantar market share numbers from February 2014 compared to November 2013 suggest that Windows Phone market share is down in most regions except Latin America - and quite dramatically in the largest smartphone market, China. Not good news for Nokia for Q1 but Nokia may be saved by the X-Series running Android.

http://communities-dominate.blogs.com/brands/

LARGEST OPERATING SYSTEMS OF COMPUTERS WHEN SMARTPHONES & TABLETS INCLUDED

Rank . . . . . Brand . . . . . . Units 2013 . . Market Share 2013 (was 2012)

1 (1) . . . . . Android . . . . . 845 M . . . . . . 57% (38%)

1 (2) . . . . . Windows . . . . 290 M . . . . . . 19% (24%)

3 (3) . . . . . iOS . . . . . . . . 270 M . . . . . . 18% (22%)

4 (4) . . . . . Blackberry . . . . 23 M . . . . . . . 2% (3%)

. . . . . . . . . Others . . . . . . . 64 M . . . . . . . 4% (12%)

TOTAL . . . . . . . . . . . . . 1,492 M

http://communities-dominate.blogs.com/brands/2014/02/largest-computer-manufacturers-when-tablets-and-smartphones-are-included-this-blog-remains-so-far-th.html

Note the shrinking total marketshare of Windows on a YOY basis.

[Max Norris]

Note the shrinking total marketshare of Windows on a YOY basis.

Ah, mixing apples and oranges then. No pun intended. Throw in some game consoles too, that'll make Windows look even worse. They can browse the web and "consume" too. If we're just talking about desktop PC's (since you can't install iOS on a PC for example), it's a whole different set of numbers. As I said before, of course people are buying phones and tablets faster.. they're dirt cheap and need frequent upgrading anyway. It doesn't mean that PC's are being phased out.

[simplezz]

Ah, mixing apples and oranges then.

My original post was talking about marketshare.

Throw in some game consoles too, that'll make Windows look even worse.

I don't focus on sales numbers for a number of reasons.

1. Microsoft rarely provides any. Or if it does, it's usually some statistical trick like "fasting growing OS", or "licences sold".

2. Some markets are growing (phones, tablets) and some are shrinking (PC's). The best way to determine mindshare as DotMatrix likes to put it, is to look at the overall OS marketshare.

If we're just talking about desktop PC's, it's a whole different set of numbers.

The desktop is just small part of the personal computing market these days, and one that's shrinking in both numbers and relevance I might add. Things are evolving, and Windows is no longer centre stage any more. That's why I don't focus on the desktop any more.

As I said before, of course people are buying phones and tablets faster.. they're dirt cheap and need frequent upgrading anyway. It doesn't mean that PC's are being phased out.

It also means that PC's aren't driving consumer trends or OEM profits. Who buys a new desktop computer more than once a decade any more? Enthusiasts perhaps, but they are savvy enough to eschew Windows and go GNU/Linux. For the rest, old desktops, new tablets and phones are good enough.

[ctebah]

My original post was talking about marketshare.

I don't focus on sales numbers for a number of reasons.

1. Microsoft rarely provides any. Or if it does, it's usually some statistical trick like "fasting growing OS", or "licences sold".

2. Some markets are growing (phones, tablets) and some are shrinking (PC's). The best way to determine mindshare as DotMatrix likes to put it, is to look at the overall OS marketshare.

The desktop is just small part of the personal computing market these days, and one that's shrinking in both numbers and relevance I might add. Things are evolving, and Windows is no longer centre stage any more. That's why I don't focus on the desktop any more.

It also means that PC's aren't driving consumer trends or OEM profits. Who buys a new desktop computer more than once a decade any more? Enthusiasts perhaps, but they are savvy enough to eschew Windows and go GNU/Linux. For the rest, old desktops, new tablets and phones are good enough.

Great analysis. I completely agree.

[Max Norris]

My original post was talking about marketshare.

Yes I know.. and mixing in different types of devices to get different results. See previous post.

 

I don't focus on sales numbers for a number of reasons.

Then just use market share. You can completely ignore the X1 if it'll make you feel better. Throw the PS4's numbers into the mix and calculate the market share with that. They browse the web and can be considered media consumption devices too. It's still skewing the numbers to fit a "fact."

 

That's why I don't focus on the desktop any more.

That's kind of funny from someone who pushes an alternative desktop OS every chance they get. ;)

 

Who buys a new desktop computer more than once a decade any more?

And you just hit it on the head and sidestepped away from the answer. Tablets/phones get bought fast because they're cheap and must be quickly replaced due to short support cycles and fast obsolescence. You can't upgrade them.. practically disposable. Desktops typically last for a long time, and "enthusiasts" tend to upgrade their own hardware without replacing the whole thing anyway. Yes, tablets and phones are a quickly growing segment.. it does not mean that desktop systems are disappearing.

 

Enthusiasts perhaps, but they are savvy enough to eschew Windows and go GNU/Linux.

Wait.. so only stupid/technically inept people use Windows now? Just to toss something out there before the term "fanboy" or whatever gets used. I've been using Unix long before there was even a Linux. Still do to this day. And yet I still prefer Windows as my desktop OS just because it runs everything hassle free reliably. BSD is my primary server OS with a couple of Linux boxes too. I'm quite comfortable enough to just say "Linux" without freaking every time somebody doesn't add GNU to the name, God forbid. I know some of you like to read from the Book of Stallman every night.. but not every *Nix user is a FOSS zealot who has to preach about choices and then jump on people when they choose something you don't like. I know you get off bashing Microsoft (even being a hypocrite to support similar businesses like Apple and Oracle of all things when it suits your argument), but now that's just condescending lol.