’s (NASDAQ: MSFT
) earnings report made it official: the Windows era is over. Microsoft shares fell over 11% on Friday, the biggest decline since the financial crisis.
The company whiffed on earnings, as consumers abandoned Microsoft’s Windows operating system.
Can Microsoft survive in a post-Windows era?
Microsoft admits it: The traditional PC is struggling
Some companies (Coca-Cola
) have blamed the weather for their recent struggles. But not Microsoft. To its credit, the Redmond tech giant was fairly upfront with what’s causing its problems.
On the earnings call, Microsoft admitted that traditional PC form factors, Windows’ home turf, are in a state of terminal decline. Demand among business users was up only moderately, and by Microsoft’s own estimates, consumer demand declined by over 20%.
That it isn't to say that Microsoft is ready to abandon Windows -- far from it. Management still believes Windows has a future. I disagree.