MSFT is dragging the market down today. The stock is down 9% right now, bouncing off a new 52-week low at 17.19.
MSFT is blaming weak Windows sales on weakening PC demand in the economy as well as increased sales of netbooks. This is contrary to Apple's report yesterday in which they blew away Mac unit sales expectations once again.
First, I wonder at what point MSFT will begin acknowledging Mac sales as the reason they are losing sales. It took a while for MSFT to acknowledge the iPhone's success over Windows Mobile.
Second, this may not just be people switching from Windows to Mac. This may be representing the different demographic markets of Windows and Mac. Mac users are generally higher income earning, so they may not be hurt by the recession as much as Windows users. Much of the commentary today is that Windows users are trading down to netbooks in this environment, which are substantially cheaper than traditional PCs. MSFT earns smaller Windows royalties on netbooks than on PCs.
Third, there may be something happening with customers simply waiting for Windows 7, which is expected in 1H 2009. This would result in decreasing Windows sales until Windows 7 is released.
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MSFT is blaming weak Windows sales on weakening PC demand in the economy as well as increased sales of netbooks. This is contrary to Apple's report yesterday in which they blew away Mac unit sales expectations once again.
First, I wonder at what point MSFT will begin acknowledging Mac sales as the reason they are losing sales. It took a while for MSFT to acknowledge the iPhone's success over Windows Mobile.
Second, this may not just be people switching from Windows to Mac. This may be representing the different demographic markets of Windows and Mac. Mac users are generally higher income earning, so they may not be hurt by the recession as much as Windows users. Much of the commentary today is that Windows users are trading down to netbooks in this environment, which are substantially cheaper than traditional PCs. MSFT earns smaller Windows royalties on netbooks than on PCs.
Third, there may be something happening with customers simply waiting for Windows 7, which is expected in 1H 2009. This would result in decreasing Windows sales until Windows 7 is released.