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Is Microsoft Corporation (MSFT) About To Become Microsaurus Nixed?

 April 04, 2013 04:33 PM

(By Rich Bieglmeier) The financial web pages are buzzing with a proactive claim from Gartner research, "Microsoft Could Be Obsolete By 2017." Screech to halt, put in a reverse and say what? Does Bill Gates know about this? 

Slumping PC sales in the face of rising tablet and smartphone sales are the basis for the Mayan like prediction. Gartner says Notebook and Desk Based computer shipments will fall 7.63% in 2013 versus 2012. The slowdown will slowdown in 2014 with shipments falling 4.10%. By the end of 2017, Gartner forecasts that PC sales will be lower than 2012's total by 20.41%. R.I.P. PCs and Microsoft Corporation (MSFT)? 

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Smartphones appear to be flattening out with anticipated 2013 growth 7.42% and a lowly 3.94% for 2014. No wonder Apple (AAPL) is struggling; however, tablets should offset the hit eventually for the one-time darling turned goat for every fund manager. 

Global demand for tablets is expected to grow by nearly 70% this year, 34.75% in 2014, and 303% by the time the calendar flips to 2018. In fact, the research firm predicts that tablets will outsell PCs, nearly 2:1, by 2017. 

Since tablets look like the name of the game in the next few years, iStock decided to look at Google Trends to see how Microsoft's Surface stacks up to Apple's iPad and Samsung's Galaxy. Is the tech device with the snappy commercials that rival Disney's High School Musical – what's the point? – making inroads on the competition? 

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Two letter answer – No. Like you didn't know that already. 

According to Google trends, "iPad" is still the king of worldwide Google searches. During the last 90-days, however, queries for the iPad have fallen about 20%. The folks in Redmond Washington are obviously hoping to pick up some of that slack, ahh, but no. During the last three months, online interest (as measured by Google Trends) in MSFT's Surface has flat-lined, starting the 90-day window with a score of 7 relative to iPad, end ending at 7. 

Now, we do think that Microsoft has a chance to overtake Samsung's Galaxy Note as Surface searches have made contact with Note, but haven't been able to get over the hump, yet. 

iStock is of the mind-frame that he/she who rules content will rule the tablet/wireless roost. As we have seen with smartphones, the device will just become the conduit for content via apps, streaming video, word-processors… Eventually, the tablet will meet the same fate. 

Overall: iStock isn't ready to say Microsoft Corporation (MSFT) is about to go the way of Dinosaurs; however, we do think the company needs to something bold to alter the tablet landscape, perhaps purchasing the likes of a Netflix, Inc. (NFLX), or teaming up with somebody like Time Warner Inc. (TWX)/ DIRECTV (DTV) to bolster their content offering.



4/4/2013 7:03:40 PM
Not looking at the whole picture there cupcake by Chad Howe
They are reviewing the clients that are used to connect to servers that run Microsoft software on the backed. The iPad is great at doing collaboration tasks but only if it is using a Microsoft Exchange Server. You can't judge a book by its cover would be appropriate here.
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