Tag Archives: Patrick Moorhead

Man the lifeboats! The Surface RTitanic is sinking fast

As dynamic, productive, and exciting has Microsoft has tried to make the Surface RT tablet out to be, consumers can’t shake the perception that it’s just a bland bit of overpriced plastic that can do little more than surf the Web.

Unfair? Maybe so. But as Wall Street digests that distasteful reality, so too should Microsoft’s marketing department. In fact, it’s eventually going to realize that as painful as the price cuts on the Surface RT have gone, they didn’t go nearly far enough.

Microsoft
Amy Hood, CFO of Microsoft.

Microsoft reported fourth-quarter revenues Thursday that came in nearly a billion dollars less than what analysts expected, thanks to a $900 million writedown of the Surface RT tablet. Amy “Red Riding” Hood, Microsoft’s new chief financial officer, was seemingly thrown to Wall Street’s wolves, as chief executive Steve Ballmer and other chief executives were absent from the call—unlike the packed house that accompanied the “One Microsoft” reorganization. To Hood’s credit, she dodged nimbly, scattering bland crumbs of data that the analysts meekly accepted.

It shouldn’t be too hard to figure out how many Surface RT tablets the writedown represented: $900 million divided by the per-unit price cuts—equating to $150 for each version of the Surface RT—will equal the number of Surface RT tablets sitting idle on Microsoft’s shelves, said Patrick Moorhead of Moor Insights and Strategy.

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Source: FULL ARTICLE at PCWorld

Source: Microsoft Surface RT isn't dead

Microsoft recorded a $900 million charge against its fourth-quarter earnings for “inventory adjustments” on its Surface RT tablet. Does that mean that the Surface RT is dead? No, a source close to the company told PCWorld.

Instead, Microsoft expects that the recent price cuts, when it lowered the price of the Surface RT by 30 percent, to have a positive impact on the tablet, the source said. (The entry-level 32GB Surface RT model now sells for $349; the 32GB device, for $499; and the 64GB configuration is priced at $599.) The $900 million charge reflects the financial impact of those price cuts, the source said. Typically, when a price cut occurs, it spurs demand; Microsoft hopes that the same trend will occur with the Surface RT.

Analysts say Microsoft’s moves are indicative of Windows RT’s value to the company. “For Microsoft, Windows RT is a long-term, strategic play,” Patrick Moorhead, founder and principal analyst of Moor Insights and Strategy, said recently, explaining why Microsoft’s Surface RT tablet is so critical to the company’s future. Moorhead characterized the Surface RT, which ran on ARM processors, as a wakeup call for Intel and its own low-power Atom architecture.

Intel heard that call, Moorhead said, and with the upcoming “Silvermont” Atom architecture, the chip maker is expected to challenge ARM. While Microsoft is expected to refresh the Surface RT at some point, it’s not clear whether the company will select Intel’s Atom—which runs Windows 8 and Google’s Android OS, as well as Windows RT.

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Source: FULL ARTICLE at PCWorld

The future is "ultramobile:" Intel makes the PC persona non grata

While the PC isn’t disappearing anytime soon, it may as well be the deranged grandmother locked away within Intel’s attic, whose faint screams are ignored in the rooms below.

Indeed, Intel’s newly-minted chief executive, Brian Krzanich, didn’t even mention notebooks, let alone the desktop, in his prepared remarks. And the only mention he made of the personal computer was a mea culpa: “We were slow to respond to the ultramobile PC trend,” he said, admitting that part of Intel’s job was to scan for trends and react to them.

Intel
Intel chief executive Brian Krzanich.

Krzanich has an excuse: he’s been on the job for just two months, taking over for Intel’s prior chief executive, Paul Otellini. As analyst Patrick Moorhead of Moor Insights noted, Intel was bailed out once again by its success in the data center market, where revenue was up 6.1 percent sequentially and flat year-over-year in Intel’s second-quarter earnings, that it reported on Wednesday. But sales within the PC Client group plunged 7.5 percent compared to the same period a year ago, representative of the continuing slide in the PC market.

But Krzanich made clear several things:

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Source: FULL ARTICLE at PCWorld

Microsoft May Be in Better Shape Than You Think

By Doug Ehrman, The Motley Fool

Filed under:

As much as the blogosphere and Wall Street analysts tend to love Apple , they tend to malign Microsoft . One of the Achilles’ heels that the company has faced in the smartphone wars is that its app store has not been on par with Apple’s. When Microsoft recently made a major push to “catch up,” even this move was not particularly well received by the Street. Ultimately, Microsoft is making important progress in smartphones, tablets, and gaming, while maintaining its core enterprise business. The naysayers may shout loudest, but I believe Microsoft remains an absolute must-own name in the space.

The app store shuffle
There can be no doubt that Microsoft has a truly Herculean task ahead of it if it is going to assemble an app store that can be seriously discussed in the context of Apple’s iTunes or Google‘s Play. To help address the problem, Microsoft debuted a development initiative called “Keep the Cash.” Under the promotion, developers can earn $100 for every app that they publish for either Windows Phone or Windows 8 through the company’s app store. The program caps the awards at $2,000 per user and a total of 10,000 awarded apps, meaning the company will spend up to $1 million to keep building out it offerings.

Rather than being praised for the initiative, one analyst, Patrick Moorhead of Moor Insights & Strategy, questioned the message the program sends. Other analysts questioned what level of developer would be incentivized by a paltry $100, and others expressed concern that the program would lead to high volume, not high-quality apps.

This seems to be another example of Microsoft’s poor reputation leading the story. While Microsoft currently has around 50,000 apps, it is pushing to grow this number. In many cases, being able to boast a high number is as important as what those apps actually do. The core apps that most people use are available across platforms in many cases. As the Windows OS becomes more popular, more and more commercial apps will be offered on Windows, so a push to hit some critical mass seems like something to be applauded, not ridiculed.

To put this in some context, at least in my opinion, when Google’s Android was sitting where Windows currently sits, the naysayers were just as loud. Why would anyone buy Android when there are so many more apps available for iPhone? Google ignored the doubters and swelled to own the global market. Furthermore, and I know that this is not specifically the point, but of the 700,000 apps available on both Android and iTunes, how many are regularly used? According to some reports as many as 400,000 of those apps have never been downloaded. But 700,000 is still bigger than 50,000.

Other developments
Beyond apps, Microsoft is expected to release its latest video game console in the next few days. The new device, Xbox 720, will face stiffer competition from mobile devices than any previous …read more
Source: FULL ARTICLE at DailyFinance

Microsoft's cash-for-apps pitch to devs smells like desperation

Microsoft yesterday kicked off a promotion that rewards Windows 8 and Windows Phone developers $100 for each app that they publish in the company’s app stores.

Dubbed “Keep the Cash,” the promotion is Microsoft’s first overt cash-for-apps program, a tactic rivals Google and Apple have never used to attract submissions.

To one analyst, the $100-per-app pitch was an ill omen.

“It looks a little desperate,” said Patrick Moorhead, principal analyst with Moor Insights & Strategy. “It sends the message that Microsoft is having a hard time building out its app categories. And it doesn’t bode well for the Windows Store.”

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Source: FULL ARTICLE at PCWorld

5 PC industry omens hidden in Intel's financial statements

Multiply the joy of watching paint dry by the sheer pleasure of watching grass grow, and you’ll get a decent idea of how exciting it is to parse the average corporate earnings report.

But everything changes when those numbers come from Intel. Don’t get me wrong: Intel’s Thursday afternoon earning’s call was still soul-suckingly boring. But as one of the cornerstones of the old Wintel homogeny, Intel’s yearly results and estimates serve as an unofficial barometer for the PC industry as a whole. As Intel goes, so goes the entire desktop ecosystem, and hidden deep in the company’s newly released financial statements are five portents for the PC industry of 2013—and beyond.

1. The PC is not dead

This one’s easy: Next time a pundit tells you the PC is going the way of the dodo, tell him to stuff it. Sure, general PC sales were down slightly in 2012—3 percent in the case of Intel’s PC Clients Group, and an estimated 3 to 5 percent for the industry overall—but desktops and laptops still do tremendous business.

“If you’re looking at 350 million units (shipped in 2012), that is not a dead market,” says Patrick Moorhead, founder and principal analyst at Moor Insights and Strategy. “The PC industry may be slowing, but it’s certainly not dead.”

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Source: FULL ARTICLE at PCWorld