“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
Lol you are one hell of a tool.
I see 3 companies you are talking about who did themselves in with poor management and nothing else.
Past there will be no new Sega Console – they are a publisher now.
Keep the hate against your fellow Americans alive dude lord knows no one wants this country to fail more than its own citizens.
these guys do not represent fellow Americans, the represent our “special ones” who live in their mother’s basement.
To the MDN take: I didn’t get to read this until Sunday, but I’ll drink to that take!
*clinks glass*
The one thing I fear is Microsloth’s situation is getting SO bad that maybe even the board of directors can’t ignore it and fire Ballmer. But I hope not. If they don’t then we know there is really something fishy about why he is kept. Anyone else would have been let go long before this with the same year after year dismal leadership results. Now if only we can get Samedung into the same situation. Maybe if Ballmer is fired, Samedung can hire him as CEO. That would be too good to be true.
I have to say that as an Apple user since the second Macintosh hit the store, this saddens me more than just a little. A company that has strong competitors has to make sure it’s products are better than their competitors products are. They have to pay attention to what it’s customer’s/user’s wants. needs. requirements are and if they are meeting them. It has to work hard to keep them happy. A company that has little competition usually does not care about going that extra mile to achieve customer satisfaction. Strong Competitors are needed for new ideas, and new products to be thought of and designed and brought to the market place. Companies that have little or no competition tend to get soft, and lazy and lose their edge and soon disappear from the market place. Apple is too young to go quietly into that dark night.
Why does M$ want so much to be like Apple?? Why don’t they just be what they started off as, a software company, and write sotware for computers.
Outch…
“The results provoked fresh skepticism of Chief Executive Steve Ballmer’s new plan to reshape the company around devices and services, unveiled last week.”
Wait.. What?
The plans is just one week old and will probably take a year before results are seen and they are skeptical after a week? Either the author is incompetent or… no, the author is incompetent.