The personal computer market was dominated by Microsoft because several hardware companies relied on the software it made. This further solidified the hold of the company on the industry. However, since the tablet industry is already taking the PC industry's place, Microsoft needed to be both the hardware and the software corporation. Analysts said that so far, Microsoft's effort to remain relevant has not worked out.
The quarterly earnings presented by Microsoft verified the PC industry's slowdown. It reported 10% climb in sales to US$19.9 billion and a US$0.66 per share profit. It missed the projections of US$20.7 billion and US$0.75 per share profit. The downturn was said to be due to Surface tablet's poor sales. This resulted to a US$900 million write down in Microsoft's inventory.
Industry analysts further said that the shipments for the PCs went down to 11%. This made the fifth straight quartile of fall. The core business of Microsoft was again hammered and was considerably set back. Experts suggested that Microsoft need to venture in the mobile-computer enterprise if it really wanted to be on the balance sheet's right side.
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