TimetoBuy,
As you know, PC sales are flat or slightly declining right now. Sales may pick up somewhat in the next year due to another upgrade cycle approaching and also due to Windows XP. My guess is that PC sales remain flat for all practical purposes.
If you happened to catch my summary of MSFT positives I make two main points.
1. The PC is not dead. PC sales are not going to fall of the map. No growth ahead (at least not in a conservative earnings model for MSFT), but the PC is not TOTALLY DEAD like the MSFT bears like to claim.
2. MSFT growth will come from other areas. Many other areas such as server software (20% growth year over year for MSFT), Data Base software (30% growth year over year for MSFT), Pocket PC (catching PALM rapidly), Gaming (massive market potential), MSN (rapid growth and a huge market), .Net (a competitive area, but with great potential), etc. etc.
MSFT is leveraging their position in the PC software business and their tremendous staff and management to move into other areas. They have excellent growth potential ahead, especially if the economy picks up, especially if broadband access continues to expand, and, unrelated to PC growth. |
