Report: Microsoft in for a "Challenging Year"
At times, it seems like the roads in Redmond are paved with gold. But according to Gold Sachs, the world's largest software company is in for a "more challenging year" in 2011 as tablet PCs start to take hold, Tech Flash reports.
"A tablet response is still not forth-coming and our early read on Windows Phone 7 has not yet changed our view that Microsoft's share in mobile OSes will remain at only the single-digit level," Goldman Sachs analyst Sarah Friar wrote in a research note. "For an unlocking of shareholder value, we continue to look for a more aggressive dividend, a more focused consumer strategy, and stronger Cloud-Azure traction."
Goldman Sachs just two months ago dropped Microsoft's rating from "buy" to "neutral" while noting that "the intrinsic value of shares cannot be unlocked if the status quo remains." Goldman Sachs also warned of an elongated PC refresh cycle.

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samduhman
December 15, 2010 at 9:59am
Refocus on PC gaming 100% not the sham they are pulling now, aka GFWL. I've said it a thousand times and I'll say it again. PC games/gamers play a major role in the popularity of MS OS. A lot of us PC gamers work in the field or are the go to for PC questions from friends and family. We basically advertise for them. Screwing over PC gamers via the Xbox was a mistake IMHO. The XBox is popular now but so were the Atari, Coleco, Sega, etc, etc.
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cpuking2010
December 14, 2010 at 2:18pm
Gold Sacks and any other delusional person who thinks tablets are any where close to replacing a laptop let alone a desktop, need to seriously let me try what their smoking. It's not gonna happen, at least not for about 5 more years. Right now there is no way I could be productive on an ipad and lets face it you know that's what their refering to.
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tekknyne
December 15, 2010 at 3:25pm
I pretty much thought the same thing. The people pushing tablets down our throats generally have a stake in their sales.
The trouble is that much like me, you're probably a power user. I can't tell you how many people I have seen with an Ipad say "it does everything, I can check my email..." and I'm waiting for the rest and it never comes. Wow checks email. Impressive. But they'll buy it just because it's simple. We forget so quickly how many people have jumped onboard the smartphone bandwagon paying $100 a month just to check facebook once in a while all the time having a functioning computer beside them.
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I Jedi
December 14, 2010 at 12:57pm
Can anyone actually name one thing that Microsoft didn't actually get an idea from someone else first?
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TommM
December 14, 2010 at 11:02am
...if MS wants to survive the next decade, they need to start being proactive and innovative instead of playing catch-up to everyone else.
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DJSPIN80
December 14, 2010 at 10:22am
Seriously, this is why Microsoft is going to hate 2011:
1) No tablet OS - no, Windows 7 doesn't count as a tablet OS
2) Windows 7 Phone barely has the functionality of an iPhone - and that's saying much considering the iPhone lacks some features compared to the Android
3) The rave about Windows 7 is over, please move on. Windows 7 was great, but it seems to be their only answer to everything. Need a tablet OS? Use Windows 7. Got a netbook? use Windows 7. Broke your arm? Use Windows 7.
4) Touch computing will be the next wave. Apple is redesigning their OS to be more gesture aware and redesigning the way people work (i.e., fullscreen mode). Windows 7 is stable, but the UI is already dated. With Touch becoming the next wave, Microsoft will try to use [again] Windows 7 and it's not designed for it.
5) For programmers, please get rid of the registry and replace all apps with .NET.
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tekknyne
December 15, 2010 at 3:28pm
I agree with you for the most part, except I think we forget so quickly how priveleged Microsoft is when it comes to market share. There's alot of business and home users who still have not adopted Windows 7. The Casino that I work at hasn't adopted 7 becasue our core business apps still haven't been certified. Even strugglin in the mobile OS market, they're the defacto OS for pretty much every Joe Schmoe out there. I think there's still alot of Windows 7 copies to be sold in 2011.
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