What the Death of the PC Means for Microsoft

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July 23 (Bloomberg) -- On today's "Chart Attack," BGC Partners Senior Tech Analyst Colin Gillis and Bloomberg's Adam Johnson look at the decline in PC sales on Bloomberg Television's "Street Smart." (Source: Bloomberg)

Time for chart attack, where we bring you a chart that will make you smarter.

Hopefully, will make you a little bit of money.

It is simple.

Sales are going down.

We saw microsoft stock trade down double digits after they reported.

But this has been going on for some time.

It has.

Let's bring in a camera and show everybody what worldwide pc unit sales have been a year over year.

You can see the trend sliding down recently.

Those percentages for the year over year have changed.

We have five seconds -- five consecutive quarters which year- over-year declines.

The march quarter declines were the single worst quarter ever.

It is important to realize where the peak work -- where the peak was.

Which was the third quarter of 2011. the pc decline has been going on for quite some time.

Tablets, which will ship about 190 million units, those are growing nicely.

The question that you have to ask microsoft, what is to say we will ever get back to the peak of 2011? because effectively, we are substituting away from pc's to tablets and smartphones.

And a matter of -- and as a matter of fact, the pc will end up being less business focused.

That is an area where microsoft has been weak, tablets and mobile computing.

It sounds like microsoft, i would not want to be long, nor on intel.

But i would want to be long on mobile devices.

Correct.

But there is concern even on mobile devices because of moving into a stage of mid tier and lower tier.

If that is the case, what company is in the best position in that middle market?

Microsoft is actually changing -- chasing after that.

They have become the third ecosystem.

Android is number one and ios is no.

2. they own the high end.

And it might make it cheaper for the chinese market, for example.

Correct.

A less-expensive iphone will still be about $400. it will not be that-of an impact on the gross margins.

This text has been automatically generated. It may not be 100% accurate.

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