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  • Newsletter #439 Preview: Apple Goes Up, Microsoft Goes Down

    April 27th, 2008

    Although couched in an expected and extremely positive spin about future earnings, Microsoft didn’t have an awful lot to crow about this past quarter. Income from Windows was rather lackluster, even though sales of new PCs are on the increase around the world.

    So what’s at work here, and why the disparity?

    Well, one alleged reason is that a large portion of the increase in PC sales are in the third world, where computers are sold without Microsoft’s operating system and, they tell us, Windows and Office are often pirated.

    But worse for Microsoft is the fact that the sales of new Macs continue to exceed analyst expectations, and are going through the roof. However, Microsoft has so far not chosen to address that troubling issue.

    Worse for Microsoft, nobody is suggesting that situation is going to change anytime soon, and the fact that a reported 50% of Mac buyers at Apple’s retail stores are new to the platform — and I’ll take the figures as accurate even if it’s an open question how they were compiled — clearly means that Microsoft has something to fear.

    Story continued in this week’s Tech Night Owl Newsletter.



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