“Microsoft Corp shares fell more than 12 percent on Friday, their biggest plunge in 13 years, a day after the software company posted dismal quarterly results due to weak demand for its latest Windows system and poor sales of its Surface tablet,” Reuters reports.
“Friday’s loss means about $36 billion has been wiped off Microsoft’s market value in one day, exceeding the size of rival Yahoo Inc.,” Reuters reports. “Microsoft’s earnings were wrecked by a $900 million write down on the value of unsold Surface tablets after it cut prices in a bid to excite buyers.”
Reuters reports, “The poor results shocked Wall Street, which had believed the company’s strength with business customers would help it ride out a downturn in consumer PC sales. The results provoked fresh skepticism of Chief Executive Steve Ballmer’s new plan to reshape the company around devices and services, unveiled last week. ‘The recent reorganization does not fix the tablet or smartphone problem,’ said Nomura analyst Rick Sherlund in a note to clients on Friday. ‘The devices opportunity just received a $900 million hardware write-off for Surface RT and investors may not even like the idea of wading deeper into this territory.’ … Microsoft launched Surface tablets last year to challenge Apple Inc’s iPad, but their sales have failed to meet expectations.”
Read more in the full article here.
MacDailyNews Take: Ah, this is perfect for a Friday evening and since it’s well after 5 o’clock:
May Steve Ballmer remain Microsoft CEO for as long as it takes!™ Hoist!
Happy weekend, everyone!
Related articles:
Weak Windows PC market catches up to Microsoft – July 19, 2013
Microsoft earnings, sales badly miss expectations; $900 million inventory writedown on Surface tablet flop – July 18, 2013
Gartner: Apple to overtake Microsoft in total OS sales in 2015 – June 25, 2013
Apple Macintosh owns 45% of PC market profits – April 16, 2013
Steve Jobs’ revenge – April 12, 2013
Apple Macintosh on the rise as Windows PC market plummets – April 11, 2013
Gartner: PC Market posts 11.2 percent decline in Q113; Apple Mac sales up 7.4 percent in U.S. – April 10, 2013
IDC: PC shipments post the steepest decline ever in a single quarter, down 13.9% in Q113 – April 10, 2013
Steve Jobs: “When the sales guys run the company, the product guys don’t matter so much, and a lot of them just turn off.”
“May Steve Ballmer remain Microsoft CEO for as long as it takes!™”
It doesn’t matter anymore. From today it will take 4 years UNDER NEW LEADERSHIP for Microsoft to develop anything meaningful in the mobile space. Don’t bother, by then you will still be 4 years behind.
The only hope for Microsoft is to fall back on its Windows/Office franchise and ditch all other efforts. Recognize that your most loyal customers are in the Enterprise (if you focus on making a better product, not just the only product). Two-thirds of the Company could be let go, cutting costs dramatically.
Forget the Windows/Office tie in. Port Office for any OS with the numbers that make doing so a good business decision. SUPPORT ALL OF THEM EQUALLY.
Trim the fat (bloat) out of both Windows and Office. Expunge every bit of DOS compatibility code. Then become the best Enterprise OS solution possible, not just the dominant OS. Support and integrate with competing OSs.
Microsoft may become ‘smaller’ firm doing this, but it will have a much better Enterprise product (30% of total computer market), and be much more profitable.
Nothing outside of desktop/server Windows and Office has made a profit since Microsoft first announced WinCE. The Board has to recognize that current leadership (including the Board Chairman) haven’t a clue how to address a rapidly evolving OS industry.
“by then you will still be 4 years behind.”
Fixed it:
‘by then you will still be 4 MORE years behind.’
You’re welcome.
Mr. Thurman, you have a far better vision and grasp of how to achieve it than Mr. Ballmer. Please send your resume and references to Microsoft right away.
Not true. Microsoft still has and will have for many, many, many years vast resources it can call upon. If Microsoft cleans house and brings in a truly visionary CEO who builds a strong product team, Microsoft could come up with the Next Big Thing. Microsoft’s boad has shown remarkable patience, and likely would give a new CEO plenty of time to get his plans implemented. Everything is there but the imagination.
Politically correct description:
“remarkable patience”
Brutally accurate description:
“incredible stupidity”
All Apple fans are thankful for, and enjoy observing their “remarkable patience.”
I raise my glass of Near Beer™ made from the finest hops and literally strangled until all the alcohol content has died a horrible death.
Get you to a decent microbrew.
Life is too short for bad beer!
wonderful. more of that.
Yeah, didn’t think they could keep fudging the books forever. Bought the July 26 34 strike Puts for .16 closed out at 2.50. I’ll take another look Monday, could see 28 by Aug.
Ethnic humor is low class, crude and rude.
I hate a lot of Canadian friends and they are absolutely great. But those twin RIM CEO’s were hosers! Amazing how just a single guy or a few guys can ruin it for a whole company and world. Are you listening sales guy Steven Anthony Ballmer?
Think you meant to say have not hate😉
I think it’s one of those weird love/hate relationships.
Yes I HAVE a lot of Canadian friends. A pity still no edit button on MDN.
I have a lot of Canadian friends too. Oh wait…that is because I am Canadian.
How are we supposed to ignore country of origin when that is the basis of your trolling?
It is amazing in the long run what arrogance and hubris can do!
Yes, wouldn’t that suck to see Microsoft diminish only to have Google take it’s place – D’Oh! But I think both have peaked. Certainly Microsoft has unless they take Ballmer by the scruff of the neck and unceremoniously throw him out and his chairs on top of him. But God forbid I make such a suggestion when we are soooo close…
“The poor results shocked Wall Street…”
More proof, as if we needed it, that Wall Street is screwed and inhabited by blinkered fools. Mr. Bill had one lucky decision at the beginning. No further business decisions were necessary. Their massive near-monopoly simply gave them the power to take over or crush nearly all opposition for many years — until in all started unravelling with Vistcrap. Considering Uncle Fester has never made a good business decision in his life, it is the height of foolishness to think he’d start now.
With those results, I expect Balmer to increase the roll out of empty Microsoft stores. With 1000 stores they should be able to sell at least a 1000 tabless a week, if they haven’t been bulldozed yet. I’ll even buy one if they drop the PX to $99. need one for my wife to watch Korean soaps and skype.
You must really love her huh?
I’ve used Skype on my mac, worked great. Perhaps you forget it was a functioning and popular product before MS bought it. It’s an MS product only in the fact hat they have not managed to ruin it like they did with the sidekick.
To continue that quote:
“… which had believed the company’s strength with business customers would help it ride out a downturn in consumer PC sales.”
Here we go again, with another journalist talking about this “downturn in consumer PC sales” like it was something to blame (an excuse) for Microsoft’s poor results. In reality, Microsoft is responsible for the downturn; this downtown is NOT some kind of independent industry trend that Microsoft must “ride out.” They must think, “Microsoft would have been fine, if it wasn’t for this unfortunate downturn in PC sales.”
Well, Microsoft can’t simply “ride out” this problem, because Microsoft is the current root cause of poor PC sales. Even if tablets are taking a bite out of PC sales, there are enough traditional PC users who want a “normal” PC. PC sales should be reasonably healthy. But those customers do NOT want a new PC running Windows 8; so they delay the purchase… And some of them get a Mac. That’s why Mac sales are still healthy.
We shall see Tuesday how healthy Mac sales are. I think the results will surprise many as Apple has many times before. People are spending money they are just shopping smarter now. After so many years of buying crap PC’s now realize Macs cost less in the long run.
True story!
PCs may be cheaper up front but the long term insanity tax is a real bitch.
Just shows you the average Apple fan is far smarter than Wall Street. I doubt a single Apple fan is “shocked.”
I have a feeling that this was part of Balmer’s plan. Microsoft will make a huge comeback in the last half of the year. If not this year, then either next year or in 2015 … when the PC industry returns to dominance. It’s just a matter of time.
You know sarcasm.
Actually, it’s part of Bill Gates’s plan. He wants to swoop in (and “pull a Steve Jobs”), to save the company HE founded, once things become REALLY desperate.
But unlike Steve Jobs, he can’t escape blame for the downfall. He’s still Chairman of Microsoft’s Board of Directors, that let Steve Ballmer be CEO for so long.
“swoop in and pull a Steve Jobs” would NOT work.
Why? Windows is well known, but people don’t respect it.
Ballmer and Gates mistake the difference.
It was kind of a joke. It’s not like Gates was in “exile” all of these years. He’s been Chairman of the Microsoft Board of Directors.
Hate to break it to you but Windows is respected by the vast majority of PC users around the world. It ain’t justified but its true.
@ivid
I’m not so sure about that. If my various clients are any indication, most regard it as a clunky, ugly tool that they have to use, because they get it on the bargain-basement computers that they buy and/or because it’s so widely used.
It. Would work if Gates had actually innovated on the same level as Steve/Apple. I wonder if a website like folklore dot org will ever exist that would document the real development of Wndows.
Could it be that ZuneTang is calling himself StanTheMan? Oh Zooney, how we’ve missed you!
This is no time to party it’s time to panic. M$’s poor sales is just more proof the experts are right and Apple is dooooommmed!!!!
Seriously, schadenfreude could become addictive.
After WinPhoneHome failure, the Early Internal Numbers @ MS; the Titanic Shuffleboard reorg; the Surface belly flop, & the High Dive, the Board of Directors is finally going to have to act in the interest of the shareholders.
To do otherwise is to tempt a shareholder revolt.
Does a 900 million write down mean M$ can count those surface rt thingies as sold or scrapped?
No, it just means that the inventory has been devalued. That could just represent an inventory of 6 million that they’re sitting on and have lowered by $150 each, or it could be a lower number that they wrote off completely. I don’t think they’ve announced details, but it seems as if it’s 6 million that they’re sitting on and have devalued by $150 each.
“I just want this company to die, and everyone who works for them has no job and is homeless.”
A blazingly small-minded and putridly hate-filled point of view.
Yep. The poster made have “tried” to be funny, but comes off as a jackass just the same.
You are CREUL, Seamus.
MS will be around for a long time ….
I think you misunderstood. Note quote marks.
First I quoted John from the first post. I.e. “no job” etc.
Then I said that his words were small-minded, etc.
I’ll put the person’s name that I’m quoting, next time.
@RP
Yeh. I too assumed that maybe he was trying to be funny. Because the remark was too WAY out-there disgusting, otherwise. But I don’t think so. I think that’s just what he was saying.
It’s in all caps so maybe it was an acronym?
hypocrisy |hiˈpäkrisē|
noun ( pl. hypocrisies )
the practice of claiming to have moral standards or beliefs to which one’s own behavior does not conform; pretense.
ORIGIN Middle English: from Old French ypocrisie, via ecclesiastical Latin, from Greek hupokrisis ‘acting of a theatrical part,’ from hupokrinesthai ‘play a part, pretend,’ from hupo ‘under’ + krinein ‘decide, judge.’
No! Noooooooooooooo…
We want Microsoft to barely survive for a long time; slowly strangled by their arrogance and cluelessness.
Apple needs a fearsome, semi-industry-leading, jackass competitor to satisfy the Wal-Mart-consuming masses with
” rel=”nofollow”>DO-ALL CONTRAPTIONS (WITH BUILT-IN, FORWARD FACING CAMERA TOO!) that are a jack of all trades, master of none, and amount to bloated gas bags with no elegance.
What we don’t is for Microsoft to swirl down the black hole of their own incompetence until they utterly disappear. Then the vacuum could be replaced by a more competent competitor.
Hip-hip, HOORAY for the The Other Steve!
I would prefer that Apple had a decent competitor to keep them on their toes rather than a shitastic one that blows donkey d**k.
I think you meant to say…
sucks donkey balls.
@John
Even though I agree with you, in some sick way once they are finally bankrupt I will miss watching them stumble and fall. Strange, huh?
A Friday evening toast to Steve Ballmer, indeed!
This is the first time MDN Has referred to Microsoft as “beleaguered.”
It’s the end of an era.
I only focus and hope Apple would do well. I would not worry about MS.
Beleaguered as in Dell? I think MS has stared down the same trail as Dell and will continue to devalue over the next 5 years. Stockholders of MS will do well to sell now and buy Apple stock.
Beleaguered Microsoft. Has a nice ring to it. I could get used to this.
This would wash down perfectly with an article of how the Surface would be the first actual iPad killer. That’s a job no one seems able to fill. Maybe it’s a fictional role like wanting to be Superman.
Seattle area needs a successful Microsoft. Many thousand of people need the company to succeed, and not just the folks working there.
It is just going back to normal , I am not surprised .
I’ve waited patiently since 1985 to see those ‘dunderheads’ at Microsoft getting their well deserved plight. Today indeed is indeed a special and memorable day to savour, may there be many more such occasions to follow.
Let the death watch begin. I give them 5 years before they are reduced to the IBM or even the Dell level of existence.
I wonder how much longer MS can keep trying to sell Surface tablets at a huge loss before they have to stop to keep the company from going broke?
Look how long it took for the Xbox to turn a profit. Another big question is if the 1 will sell as well as the 360, I don’t think it will. The only device they have that people are remotely Interested in is the phone, the one device the aren’t pushing. It is also the one device that is truly different from what Apple is offering. There problem there is that they lack the environment that Apple has. Microsoft is the story of a product as opposed to Apple which supplies the full experience. Apple is a lifestyle and mission.
You realize IBMZ Is still in the top 20 biggest companies right? And they’re really innovative. They’re developing the basies for AIs
I hope they keep at it for a long, long time because I get a kick out of how (not) cool the Hipster-cool dancing girls in school uniforms are.
Bring it ON, Microsoft. Spend lots of money making commercials like these.
But all the pedophiles loved those Hipster-cool dancing girls in school uniforms.
The analysts won’t have accurate forecasts until they realize that we have a down trend, not a down town.
The market is setting a new lower equilibrium point for PC’s which is why the Slate was so important.
.
I totally agree with that. They are making big mistakes now. For example the Xbox 1. Who is going to pay $500 for the system and $100 per game? That is what they get for screwing everyone over.
A lot of XBOX fans will buy it. It will be a great console despite is stumblings at the announcement. And if you paid attention they backtracked after listening to their customers. At least they listen to their customers and act, I’ve never seen Apple to that. They think they know best even when they don’t.
Games will be $60 like the 360, don’t spread lies !
There is no mistake in launching a follow up to the successful and widely deployed 360. In fact its a no-brainer. The price tag may be a mistake, but most serious gamers won’t hesitate at $100 over PS4 if it means even just one killer exclusive title.
There is a reason for a lack of mirrors in Ballmer’s windowed office.
And the lack of chairs.
John: “I just want this company to die, and everyone who works for them has no job and is homeless…..”
This comment should be directed to the footpads that are in charge of making the decisions that have taken the company down. The mangers, supervisors, higher-ups right to Balmer that lie, steal, cheat to get and hold on the positions they have. They deserve the wrath of your comment. But you know they aren’t the ones who will suffer, they work at being the assholes they are and know how to hang on to their jobs. The ones who will wind up suffering your wish will be the bottom of the MS job pool. The ones that need a job, the ones who have devoted time and energy for MS in the hopes of getting ahead, designing good products, solving problems, just fulfilling dreams. They are the ones that will the first to go. For them, I feel sorry for in this economy. For the others, wish for something catastrophic to happen where they lose all their wealth and position.
I agree. It’s not the employees on the front lines who should suffer and face unemployment hardships if the company fails, while those REALLY at fault for the company’s demise have a cushion of multiple millions to float away on. Obviously at this point the hire ups don’t give a shit that this company is in a death spiral. They are banking on the PC loyalty of business PC purchases and Winduhz Office needs to keep them going—maybe not with wild profits, but afloat. And they are right to some extent. Business’ have shown they do not want to give up their ties to PC’s not matter how difficult, behind-the-times, unproductive, or repeatedly compromised they still are.
Throwing in a bit of realism: MSFT is currently, after the stock dumping, at 31.40. That’s STILL unrealistically high and not yet down to the level at which it had stagnated for years.
Kick MSFT down to 26 and I’ll be cheering. Until then, this is just a correction, IMHO.