IDC recently increased the decline it expects for PC shipments in the March quarter to 7.7% decline. Given the change in the computing landscape, it may prove difficult for the PC market to experience growth. We expect PC shipment revisions to continue a negative trajectory. The enterprise refresh which has driven results in the Windows segment has past its peak as over 60% of enterprise desktops worldwide are on Windows 7 according to the company.
Microsoft’s traction in the SmartPhone and Tablet marketplace remains lackluster. Tablet growth is estimated by IDC to reach 190 million units and post 49% growth. We estimate that smart phone shipments could exceed 1 billion units in 2013, as emerging countries increasingly turn to inexpensive Android phones