| the2real4mafol said: I'm surprised at this, they are making so much profit. Why are they being downgraded? |
It's because of the decline in PC sales. Windows is their key bussiness, so they are with a big problem if that continues. And while they have a total monopoly in the PC market, the post-PC side is way more difficult, with Android and iOS having a large share.
Actually, the problem is that in the desktop market they are competing with Apple, that has premium prices and Linux, that don't have a massive company to push it (Red Hat isn't that big. I'm a Linux guy, but having money to burn is a key advantage in the bussiness). There are several factor that have made MS the ruler of that market (large use, Office, developer tools, etc).
In the post-PC market, things are different. Android and iOS are backed by Google and Apple. They are massive companies too, so the strategy of burning money to win and wait to your competitor to crash won't work (it isn't MS only strategy, but they used it a lot in the last decade because it's efficient and works. They know how to burn money in the correct times to win). So the market is changing from a situation where MS is the only one to a situation wheree they have to fight with two giants to get a share in an uphill battle.
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