Microsoft shares decline after downgrade due in part to increased competition from Apple’s Mac

MacBook Pro“Shares of Microsoft Corp. edged lower Wednesday after Global Equities Research analyst Trip Chowdhry downgraded the software giant in part due to increased competition from Apple’s Macs to its Windows operating system,” The Associated Press reports. “Chowdhry, who downgraded Microsoft to ‘Equal Weight’ from ‘Overweight,’ said in a note to investors he does not expect the company to see any upside to his estimates for the next 12 to 18 months.”

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“Increasingly, companies are giving their employees a choice to either use Microsoft Windows PCs or Apple Inc.’s Macs, the analyst said. And, increasingly, employees are choosing Mac over Windows,” AP reports. “To boot, Chowdhry said 70 percent of college freshman are entering school with Macs, up about 10 percent to 15 percent from a year ago.”

AP reports, “‘Our research is indicating that Microsoft is unable to connect with the new generation of users,’ Chowdhry wrote, adding that this could cause problems down the road when these students enter the work force and once again pick Macs over Windows.”

Full article here.

MacDailyNews Take: When we wrote the following back on January 10, 2005, many laughed:

As we have always said, even as many short-sightedly waved (and continue to wave) the white flag, the war is not over. And, yes, we shall prevail… No company is invincible. Not even Microsoft.

We don’t hear any laughter today.

[Thanks to MacDailyNews Reader “BackMook” for the heads up.]


  1. I love my Apple products but always be wary of a company that gets most of a market share. They get complacent and start to create inferior products as is happening to Microsoft (already happened to IBM). The same could happen at Apple. I hope Apple keeps that fresh underdog work ethic so that we have great products for years to come

  2. Apple’s success has been a remarkable story. But just like MDN’s take was correct, this should also not be laughed at:

    No company is invincible. Not even Apple.

    As a shareholder I hope for Apple’s continued success, but I won’t be one of the people emotionally attached and holding onto my stock if if comes tumbling down.

  3. Apple’s Mac business will continue to thrive and beat the industry average, as long as there are plenty of Windows users to make into first-time Mac users. Existing Mac users will obviously buy a new Mac to replace an old Mac. But the majority of current Mac sales are going to first-time Mac users (AKA former Windows users).

    Fortunately, that source of new Mac users is not going away anytime soon.

    Anyone who said Apple is giving up the Mac business is a fool. I expect Apple’s Mac sales to grow as it never has before, during the next five years.

  4. Yeah, back in the day when all corporate upper-mgmt abdicated the tech responsibilities to ‘The IT guy”, IT could continue to foist Winblows on all employees and there wasn’t a damn thing anybody could do about it.

    Now, after having gone through a plethora of trojans, virae, security breaches, upgrades, patches, ‘fixes’ and downtime, companies are finally letting employees use the superior computing platform in the workplace.

    Oh, and *if*, for some reason, they absolutely need to use a Windows program, Macs can do that too.

    As MDN has repeatedly stated, “The Dark Age of computing is finally coming to an end.” Amen.

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