The second quarter of 2009 has brought terror in the minds of all Microsoft investors, with the company reporting a 29% decline in profits. The company saw a drop in computer shipments and in the sale of Windows software during the quarter.
The top line also declined by 17% which was way below the estimates of all the analysts. The company is in fact expecting the tough times to continue, which is in sharp contrast to the positive projections shown by Intel and Apple Inc last week.
It is also important to recollect that Microsoft is to face a new challenge from Google for the Operating Software market. As of now , Microsoft is deriving over 80% of the profits from Windows Operating Software and if Google is able to plug out even 5% of the OS market from Microsoft, that could further dent the performance of Microsoft in the coming quarters.