Predicting the demise of Microsoft is almost a national pastime in the tech sector and the last 24 hours has sparked a good bit of debate. The most recent discussion around Microsoft was sparked by a Goldman Sachs research note. Sarah Friar wrote that it'll be a "more challenging year" for Microsoft with top-line growth slowing from 12 percent to seven percent.
"A tablet response is still not forth-coming and our early read on Windows Phone 7 hasn't yet changed our view that Microsoft's share in mobile OSes will remain at only the single-digit level," Friar wrote. "For an unlocking of shareholder value, we continue to look for a more aggressive dividend, a more focused consumer strategy, and stronger Cloud-Azure traction."
In a nutshell, Goldman Sachs noted that Microsoft missed the tablet curve, faces the down slope of a Windows 7 upgrade pop and faces multiple challenges. According to Goldman Sachs 2011 is going to be a rough year for Microsoft.
In a case of nice timing, the New York Times reports that Microsoft will demo new slate PCs and Windows 8 functionality at CES 2010 next month.
[tags]goldman sachs,ces,consumer electronics show,nyt,ney york times[/tags]