EditorsAbout the SiteComes vs. MicrosoftUsing This Web SiteSite ArchivesCredibility IndexOOXMLOpenDocumentPatentsNovellNews DigestSite NewsRSS

07.20.13

OEMs Are Dumping Microsoft, Leading to Biggest Sell-off of Microsoft in 13 Years

Posted in Dell, Finance, Microsoft, Vista 8, Windows at 2:16 pm by Dr. Roy Schestowitz

Microsoft shares

Summary: Microsoft is trying to write off a billion dollars as its hardware ambitions are pretty much dead and OEMs (other hardware makers) leave Microsoft for Linux/Android; Microsoft’s shares crash (as shown above)

Microsoft had a very bad week last week, just after the ‘reorg’ PR campaign [1, 2, 3, 4]. Gregg Keizer said that “Microsoft’s attempt to transform its dog-eat-dog corporate culture into a kinder, gentler cooperative climate is likely doomed, according to an expert in failed business strategies.”

“Note that Microsoft takes almost a billion-dollar charge on Surface (way to hide the losses).”What “kinder, gentler cooperative climate”? The bribes? The patent extortion? Those are just baseless promises. Anyway, the article goes on, citing Carroll. Here is some background: “Carroll’s book, which he wrote with fellow Devil’s Advocate co-founder Chunka Mui, conducted postmortems on some of the most famous business failures, and is based on research into 2,500 enterprise flops. Devil’s Advocate, meanwhile, is an alliance of experts who help corporations evaluate strategy shifts.”

What shifts of strategy have been seen in Microsoft? That has been mostly PR. The real business was the illegal monopoly on formats and a common carrier, Windows, which is rotting because of form factors diversity that even bribes cannot make up for.

We recently wrote about Dell‘s resistance to Vista 8 and now we witness resistance to Microsoft as a whole, accompanying news about the company’s shares collapsing shortly after ‘reorg’. Well, here is what Pogson makes of the ‘reorg’ and here is a noteworthy observation about OEMs walking away from Microsoft, one recent example being Microsoft’s partner Samsung (older news from this year) and a new example being Lenovo, which has some former Microsoft staff at the top. Here is the news:

Microsoft has been having a rough time with its fledgling Windows RT operating system. Devices using the tablet-centric operating system, have sold poorly since the operating system was introduced last year. The flagship tablet running the operating system from Microsoft, Surface RT, recently received a significant price cut in an effort to spur sales.

Note that Microsoft takes almost a billion-dollar charge on Surface (way to hide the losses). This is ruining Microsoft’s relationship with OEMs. To quote this one article: “Less than a year after Microsoft entered the tablet computer market with the Surface, the cracks are starting to show.”

“he NSA scandals definitely won’t help Microsoft this year.”Just starting to show? No, people pointed them out just weeks or months after the debut. Here is coverage from IDG which is not really shocking. It says that days ago Microsoft “booked a large write-off to its Surface RT business after it slashed prices on the tablets to stimulate demand this week. Its quarterly earnings results also showed that Windows 8, an operating system designed to bridge the divide between PCs and tablets, has been so poorly received that it contributed to a revenue drop in its operating system software unit.”

This Vista 8 stunt is similar or reminiscent of how Microsoft previously hid massive losses. Some coverage is filled with understatements. These financial tricks are nothing new and the scams begin. As Will Hill put it:

Microsoft took an 11% decline in value, $32 Billion, on their latest earnings report. No one is buying Vista H8, Microsoft’s crappy tablets, which had $900 million in unsold inventory, or Nokia’s crippled phones. The reorg fooled no one.

https://plus.google.com/u/0/113117251731252114390/posts/it9853xDVVC

As usual, the Microsoft press and Warren Buffet say, Buy some Now! Even the CNN article claims “decent numbers”. What fraud.

http://www.forbes.com/sites/dividendchannel/2013/07/19/microsoft-corporation-enters-oversold-territory-msft/

Here is a report which calls it the biggest sell off in 13 years. To quote: “Shares suffer biggest one-day percentage sell-off since 2000 as investors fret over weak demand for Microsoft’s latest Windows operating system and Surface tablet.”

Following many high-level departures, including those two CFOs who got extra money just to keep their mouth shut, something big is happening here. The NSA scandals definitely won’t help Microsoft this year.

Share this post: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • del.icio.us
  • Reddit
  • co.mments
  • DZone
  • email
  • Google Bookmarks
  • LinkedIn
  • NewsVine
  • Print
  • Technorati
  • TwitThis
  • Facebook

If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

Pages that cross-reference this one

What Else is New


  1. Links 30/10/2014: GNOME 3.15.1, Red Hat Software Collections 1.2

    Links for the day



  2. Links 29/10/2014: Ubuntu Touch Tablet, Puppy Linux 6.0

    Links for the day



  3. Links 28/10/2014: SUSE Linux Enterprise 12, Canonical OpenStack Distro

    Links for the day



  4. Links 28/10/2014: PiFxOS, The Document Foundation in OSBA

    Links for the day



  5. Microsoft is Bricking Devices With Linux (Yet Again!), So a Microsoft Booster Spins/Paints Linux Devices as 'Fakes'

    Microsoft delivers rogue drivers through Windows Update and they brick Arduino microcontrollers



  6. How Bill Gates Continues to Pass Wealth From the Public to His Own Bank Account

    Having put a universal tax on many things (not just computers) and evaded tax using the classic 'charity' trick, Gates is now buying the media, the schools, politicians etc. and earns as much as 10 billion dollars per year while the public is taught that Gates is a giver, not a hoarder of the worst kind



  7. Links 27/10/2014: Lenovo Unbundling, Linux 3.18 RC2

    Links for the day



  8. IRC Proceedings: September 14th, 2014 – October 25th, 2014

    Many IRC logs



  9. Links 25/10/2014: KDE Mockups, Update on GNOME Outreach Program for Women

    Links for the day



  10. After Infecting Unity -- Successfully -- Microsoft's Partner Xamarin Wants to Infect Unreal Engine With .NET

    Xamarin continues to spread dependence on Microsoft to more gaming frameworks, not just platforms such as GNU/Linux, Android, and even permanent-state devices



  11. Taking Microsoft Windows Off the Grid for Damage to Businesses, the Internet, and Banking Systems

    Microsoft's insecure-by-design software is causing massive damages ([cref 27802 possibly trillions] of [cref 13992 dollars in damages to date]) and yet the corporate press does not ask the right questions, let alone suggest a ban on Microsoft software



  12. City of Berlin Does Not Abandon Free Software, It's Only Tax Authorities

    A Softpedia report that says the City of Berlin is moving to Microsoft Office is flawed and may be based on a poor translation



  13. Nadella a Liar in Chief at Microsoft, Pretending That His Anti-Competitive Practices Are Unfortunately Imposed on Microsoft

    The nastiness of Microsoft knows no bounds as even its assault on GNU/Linux and dirty tricks against Free software adoption are characterised as the fault of 'pirates'



  14. Reuters Writes About the Demise of Software Patents, But Focuses on 'Trolls' and Quotes Lawyers

    How the corporate media chooses to cover the invalidity of many software patents and the effect of that



  15. Links 24/10/2014: Microsoft Tax Axed in Italy, Google's Linux (ChromeOS/Android) Leader Promoted

    Links for the day



  16. Links 24/10/2014: GNU/Linux History, Fedora Delay

    Links for the day



  17. Links 23/10/2014: New *buntu, Benchmarks

    Links for the day



  18. Links 22/10/2014: Chromebooks Surge, NSA Android Endorsement

    Links for the day



  19. Links 21/10/2014: Debian Fork Debate, New GNU IceCat

    Links for the day



  20. Criminal Microsoft is Censoring the Web and Breaks Laws to Do So; the Web Should Censor (Remove) Microsoft

    Microsoft is still breaking the Internet using completely bogus takedown requests (an abuse of DMCA) and why Microsoft Windows, which contains weaponised back doors (shared with the NSA), should be banned from the Internet, not just from the Web



  21. Microsoft 'Loving' GNU/Linux and Other Corporate Media Fiction

    Microsoft has bullied or cleverly bribed enough technology-centric media sites to have them characterise Microsoft as a friend of Free/Open Source software (FOSS) that also "loves Linux"



  22. India May be Taking Bill Gates to Court for Misusing His So-called 'Charity' to Conduct Clinical Trials Without Consent on Behalf of Companies He Invests in

    Bill Gates may finally be pulled into the courtroom again, having been identified for large-scale abuses that he commits in the name of profit (not "charity")



  23. The Problems With Legal Workarounds, Patent Scope, and Expansion of Patent Trolls to the East

    Patent trolls are in the news again and it's rather important, albeit for various different reasons, more relevant than the ones covered here in the past



  24. Links 20/10/2014: Cloudera and Red Hat, Debian 7.7, and Vivid Vervet

    Links for the day



  25. Links 20/10/2014: 10 Years Since First Ubuntu Release

    Links for the day



  26. How Patent Lawyers Analyze Alice v. CLS Bank

    Breaking down a patent lawyer's analysis of a Supreme Court's decision that seemingly invalidated hundreds of thousands of software patents



  27. Is It Google's Turn to Head the USPTO Corporation?

    The industry-led USPTO continues to be coordinated by some of its biggest clients, despite issues associated with conflicting interests



  28. The EPO's Public Relations Disaster Amid Distrust From Within (and EPO Communications Chief Leaves): Part VII

    Amid unrest and suspicion of misconduct in the EPO's management (ongoing for months if not years), Transparency International steps in, but the EPO's management completely ignores Transparency International, refusing to collaborate; the PR chief of the EPO is apparently being pushed out in the mean time



  29. Links 18/10/2014: Debian Plans for Init Systems, Tails 1.2

    Links for the day



  30. Links 18/10/2014: New ELive, Android Expansion

    Links for the day


CoPilotCo

RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time

CoPilotCo

Recent Posts