Analysts have downgraded Microsoft stock from buy to neutral
in the wake of reports from IDC and Gartner that contributed the sharp decline
in PC sales to Windows 8.
The decline was worse than forecast and the steepest decline
since IDC began worldwide PC tracking in 1994. IDC put much of the blame for
this on Windows 8, which has failed to make any real impact on consumers along
"The combination of Windows 8's sluggish adoption and the
absence of compelling new hardware have been disappointing,with no relief
likely until later this year when Intel’s Haswell new notebook processor
extends Ultrabook battery life to 10 hours and prices fall to an expected $600
level,” said ‘veteran Microsoft
analyst’ Rick Shurland.
The analyst isn’t alone in condemning Windows 8 however and
Goldman Sachs analyst, Heather Bellini, has taken it a step further and
recommended that investors sell any shares they hold in the company.
Shares in Microsoft fell 4.4% last week, the biggest drop
since 2011 and according to Shurland, Office will no longer do well amongst
consumers either, although it’s likely that business users will continue to use
Consumers are also "unlikely to remain with Microsoft for
notebooks or tablets, while the other half likely work in an office setting and
continue to produce higher-value content in Office and could be receptive to a
new generation of thin, light weight, touch-based notebooks offering instant
on, 10 hours of battery life and at a price approaching $600 by year- end,”
According to Bloomberg
News, at least one other analyst, Steven Turner, has also downgraded the
stock from buy to neutral.