Disappointment from Windows 8?
To the surprise of many, Microsoft’s Windows 8 did not help spur demand for PCs. The “metro” interface was more suitable for tablet and touch devices, but overall proved confusing for the end user.
Microsoft could be planning to replace Windows 8 with the return of the start button. But it is hard to say if this incremental release would slow the decline in PC sales.
Tech Stocks to watchThough they are all up sharply in the last year, HP and Microsoft are stocks to watch carefully. HP is in the midst of a multi-year turnaround, and needs a stable PC market to support its restructuring efforts. HP shares are already up close to 25% in the last year. The failure for PC demand to improve could set off profit taking among some investors. Click on the interactive chart to see data over time. Sourced from Zacks Investment Research. Microsoft shares hover around $35.50. Profits continue to be strong on the server and enterprise space, but the company really needs Windows 8 sales to improve. The drop in PC demand is likely going to continue, and Microsoft will need to speed up innovation in its Surface tablet. A lower price point for its Pro tablet and ongoing integration between the tablet and the Windows phone could keep consumers interested in Microsoft. (Written by Chris Lau, a Kapitall Writer. All data sourced from Zacks Investment Research.)
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