Microsoft stock takes its largest dip in two years? – More than 4% according to reports.

With people around the world celebrating the Royal Wedding, good cheer may be hard to find around Redmond today.  If Steve Ballmer had considered raising a glass to the happy Royal couple, then the news on the Microsoft stock drop may instead have the chairs flying.

It is being reported that Microsoft stock is down more than 4%, the largest one day drop the company has seen for 2 years.

Business Insider said:

The stock is down more than 4%, its biggest drop since July 2009, when the company reported disappointing earnings for the fourth quarter of its 2009 fiscal year……

Source: http://www.businessinsider.com/microsoft-stock-sees-biggest-plunge-in-two-years-because-of-bad-pc-sales-2011-4#ixzz1KwcI7hM5

Is this the start of a more aggressive erosion of Microsoft? It certainly would not surprise me since we see almost every avenue of revenue being eaten away at by competitors with popular and loved products.  With Windows sales allegedly dropping 4% and general PC sales 8%, its looking like a little bad news for Microsoft.

Lets look at some other examples:

Zune – If that was to be an iPod destroyer, then for me it failed more spectacularly than the Kin did as a phone.  The Zune “technology” now appears to be little more than a reincarnation on the WP7 platform.

Kin – Need we say more?

WP7 – Despite marketing campaigns and “advocacy”, it still appears people are overlooking it for Android phones or Apple and thats forgetting about its lacking features or the issues which have been reported.

Bing – How much money is Microsoft pouring into this?  There are figures thrown around the net, but whatever the truth, Microsoft shareholders surely cannot be very happy with the impact its had (or rather not had) on Google.

Microsoft Office – For the vast majority of users I have one question: Libreoffice – Why pay more?

Windows 7 – Can’t shake the XP syndrome – that’s great for XP, not so great for Microsoft to make money.

Xbox360 – Despite claims of great success, its reported that Sony outsold the 360 for the last two years.  With no Bluray and a subscription based online play service, does this come as a surprise to anyone? (lets not forget the rather large issue of the RROD and that its alleged Microsoft are only now starting to make money on the platform)

In my view Microsoft is a bloated beast, from the views I read it appears that internally its a hive of politics, backstabbing and personal agenda’s.  How long can Microsoft remain in “control” of the computing world?  – I’d say as long as its war chest of cash holds out.  In the meantime, it will be the shareholders who see their investment go the way of the u-bend, if this is indeed a small glimpse of a downward spiral to come.

Goblin

If you are new to this blog (or have not yet read it) please take time to view the OpenBytes statement, here.

Mail: bytes4free@googlemail.com
Skype: tim.openbytes
I can also be found in #techrights, #techbytes on freenode.net.

5 Comments Add yours

  1. Wayne Borean aka The Mad Hatter says:

    I don’t know if you read the actual SEC filing, but Microsoft’s expenses were extremely high this quarter. Extremely high.

    A point to consider, which Business Insider missed, is that the drop in Windows license sales will impact Office sales down the line. Office only runs on Windows, and the Mac. On the Mac everyone is switching to IWork. It costs $50.00 as compared to $250.00, and it’s a real Mac Cocoa application, while Office still looks like it was designed for Carbon (OS9 in other words). With Windows sales dropping, Office sales will have to drop. There just won’t be as many Windows boxes for it to run on. Simple math that everyone one, except Mainstream Media Journalists understand.

    What will be really interesting is the Q4 results. Microsoft reports Q4 in a different format than all of the other quarters. This obscures problems, I have to carefully crawl through it, before I can feed the numbers into my spreadsheet. But I’m looking forward to those numbers with interest.

    Wayne

  2. openbytes says:

    Thanks Wayne!

    Its very true about the relationship you highlight between Windows/Office and it will be interesting to see how those historic cash-cows will continue to sustain a Microsoft which I don’t believe has managed to make a worthy revenue stream outside of those two products.

    Maybe its because the Windows/Office combo are so entrenched within computing that it will take a while for those products to go the way of the dodo, but even putting aside Windows/Linux debate, I have been asking for so long, what on earth do the vast majority of home users need with Office anyway? Are the vast majority saying that Libreoffice just doesn’t quite cut it? I wouldn’t think so and I think that just like the majority of people would not buy a proprietary IRC client (since there are so many great FOSS titles about) time is coming where the idea of Office software having a price are numbered.

    Kindest regards,

    Tim.

    1. Wayne Borean aka The Mad Hatter says:

      It’s not necessarily ‘home’ users who need it, but there are a lot of independent professionals. These people all used to buy Microsoft Office. People like my friends Shirley Meier and Karen Wehrstein, who’ve been professional writers for ages (they started using IBM selectric typewriters). They used to buy the latest and greatest Microsoft Office. Now they use Open Office. Lost sales for Microsoft.

      A lot of independent professionals have made the same choice. It’s about the money, honey, as PJ puts it. You have a choice. Spend several hundred bucks for Microsoft Office. Or download Open Office for free. Remember, this is coming directly out of your pocket. What do you do? You download.

      And a lot of the independents like myself are moving to Linux and/or OS X. So Microsoft looses a few more sales.

      I have qualms about the numbers myself. Some of them don’t quite look quite right. Of course some stuff could have been carried over from last quarter, it happens.

      As I said, Q4 is the one to watch. It will show a full year of IPad impact, and that will be important. Because I think that the move to tablets is going to be a major factor in the Q4 results.

      Wayne

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s