After Microsoft's announcement of its lower-than-anticipated results for the fourth quarter, its shares decreased by 10% within four days. Analysts attributed the decline with the fact that the company kept on going to a variety of direction without a strong result in any one.
Fiscal 2013's fourth quarter earnings of Microsoft rose by only 3% to US$19.2 billion while its revenue from each share decreased a huge 19% to US$0.59 from last year. Microsoft's poor results were due to the fall of its Windows division's performance. It was also due to the slow demand for PCs and the tough time its software and hardware units were facing.
According to analysts, Microsoft must put an enormous effort to enter the revolutionary market of smartphones and tablets using its new operating system, Windows 8. They further said that the PC demand's sluggishness was bound to transpire. In the fourth quartile, a fall of 20% in user PC demand resulted to a decrease of 15% in original equipment manufacturer profits. The challenge for the corporation would be to focus on its vital product and steer away from difficult conditions.
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