According to latest data from the International Data Corporation (IDC) released on June 9, PC sales dropped 1.7% against an estimate of a 7.1% decline. The data further suggested that while the PC industry may be recovering, the threat from the exponential rise in the use of tablets and smartphones has not diminished. For Microsoft, this means it must reinvent the Windows, and change it in such a way that it caters to consumers' shifting preferences, just like it did with Office 365.
With Windows 8, Microsoft tried to develop a unified ecosystem, one that could help the company gain share in the mobile and smartphone markets. Unfortunately, the plan did not work out.
Rumors suggest Windows 9 will truly be the platform that unites PCs, tablets, smartphones, and even gaming consoles. Windows 9 is said to be built upon the same kernels/libraries/abstraction layers to create a unified ecosystem. This means that a single piece of code written by a developer will create an application accessible through all Windows devices.
If these rumors hold any truth in them, Microsoft may very well transform itself into a leader in the smartphone and tablet market, by successfully transferring its PC legacy into handheld devices.
Microsoft’s diluted earnings per share (EPS) came in at $2.67 at the end of FY13. Year-to-date (YTD), the stock has gained 11.75%. It is currently being traded at a price-to-earnings (P/E) multiple of 14.6x, which is a 40.4% discount compared to the industry’s average.
Microsoft will announce its fourth-quarter earnings on July 22.
Source: bidnessetc
