Steve Ballmer’s Microsoft Nightmares Are Starting To Take Hold

Steve Ballmer's Microsoft Nightmares Are Starting To Take HoldAlmost one year ago today, we laid out the nightmare scenario for Microsoft (MSFT) that could lead to its business collapsing. After laying it all out, we concluded, “Fortunately for Microsoft, none of this is going to happen.” We were wrong. Microsoft’s nightmare scenario is actually starting to take hold.

The iPad eats the consumer PC market.

In the third quarter of 2012, PC sales were down 8 percent on a year-over-year basis worldwide. A big chunk of the decline can be attributed to the rise of the iPad. Throw in Apple’s 4.9 million Macs, and it’s the top computer maker by a mile.

Windows 8 fails to stop the iPad.

Gulp. It’s still early, but every most data points say Windows 8 is not going to make a dent in the iPad. In Microsoft’s defense, it says it sold 40 million licenses, which it says is out pacing Windows 7. There’s a chance analysts are wrong.

Loyal developers start to leave the Microsoft platform.

So far, the early signs are actually positive for Microsoft. It has over 20,000 apps in its Windows app store. Windows 8 is only a month old. At the same time, Microsoft doesn’t have a Facebook app for the Surface, and one of the biggest complaints from reviewers was the lack of good apps for Windows 8.


Windows Phone gets no traction despite the Nokia deal and RIM’s collapse.

Despite everything Microsoft has tried in mobile for the last two years, consumers aren’t buying it. And the latest phone from Nokia is thick and heavy compared to phones from Apple and Samsung. We don’t expect it to be a blockbuster.

Microsoft suffers a huge quarterly loss. Ballmer retires to play golf.

Let’s not kid ourselves — it’s going to take a sudden, unexpected disaster at Microsoft to get Ballmer out of the company. In 2012, Microsoft had its first ever quarterly loss as a public company because it had to write down the $6.2 billion acquisition of aQuantive.

Given the latest happenings, do you think Microsoft can still pull through? Team Microsoft or Team Apple?

Source: Yahoo Finance

Image: Bald Celebrity

RIM Manufacturer To Halt Blackberry Production

Toronto-based original device manufacturer Celestica on Monday announced that it will stop producing hardware for struggling mobile device vendor Research In Motion.

Celestica stated that it will wind down manufacturing services related to BlackBerry devices over the next three to six months, and it expects restructuring charges to be less than $35 million. RIM reported earnings for its fourth fiscal quarter in late March, missing expectations and painting a bleak picture for its first two quarters in fiscal 2013.

The vendor also announced that it would take a $1 billion charge related to unsold BlackBerry device inventory. RIM will not launch its first BlackBerry 10 smartphone until late this year, and industry watchers are expecting stiff competition from Apple’s next iPhone and a variety of new Android smartphones. Some contents from Celestica’s June 18 press release follows below.


“Celestica Inc. (NYSE, TSX: CLS), a global leader in the delivery of end-to-end product lifecycle solutions, today announced that over the course of the next three to six months, it will wind down its manufacturing services for Research in Motion (RIM).”

“More details about this announcement will be provided as part of the company’s second-quarter results press release and conference call, which are scheduled for Friday, July 27.”

“In addition, Celestica is reaffirming its second quarter financial guidance that was provided on April 24. The company anticipates revenue to be in the range of $1.65 billion to $1.75 billion, and adjusted net earnings per share to be in the range of $0.20 to $0.26.”

Is it only a matter of time before RIM plunges to its final downfall? Or do you think that there is still a slim chance for recovery?

 

Source: Digg

Image: Jamie & Adam Tested