Microsoft shares tumble after PC sales drop

15/04/2013

Microsoft's shares fell by 4.44% to $28.94 last week, following reports that the PC market is in decline amid growing demand for smartphone and tablets.

Goldman Sachs recommends that investors offload their shares in the company after the home computer market saw one of the biggest downturns in its history.

"Quarterly results will gradually deteriorate unless Microsoft successfully repositions itself as a more meaningful participant in the new era of consumer compute," said Goldman Sachs analyst Heather Bellini.

The investment banking giant has downgraded Microsoft's investment rating from 'neutral' to 'sell', with several market analysts doing the same.

The news follows a report from industry analyst IDC that shipments of desktop and laptop machines contracted by 13.9% in the first three months of 2013 as tablet and smartphone sales continue to boom.

IDC also reported that the launch of Microsoft's Windows 8 appears to have had a negative impact on PC hardware sales.

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