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Analyst: Enterprises, Consumers Aren't Embracing Windows 8

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A well-respected analyst says Windows 8 isn't catching on with consumers or enterprises. As a result, Nomura's Rick Sherlund has reduced his forecasts for Microsoft earnings.

Fred Donovan with FierceEnterpriseCommunications reported, "Enterprises have not shown interest in Windows 8 so far, which is concerning Wall Street, according to Nomura Securities analyst Rick Sherlund. As a result, the analyst has reduced his projection for Microsoft's (Nasdaq: MSFT) revenue to $79.6 billion for its fiscal year ending June 30, down from a previous estimate of $80 billion."

CNET's Jay Greene added, "Nomura Securities analyst Rick Sherlund, one of the longest tenured and most respected Microsoft watchers on Wall Street, believes Windows 8 has failed to slow the post-PC era march, where consumers opt for smartphones and tablets ahead of personal computers. 'The tide continues to go out on PC sales as consumers and emerging market users prefer tablets and smartphones to Windows based PCs,' Sherlund wrote in a research note sent to investors this morning. 'Windows 8 has failed to ebb the receding tide.'"

Barron's also quoted Sherlund, who said, "Enterprise users and professional/consumers (prosumers) that are more attached to Office as a productivity tool have been in no rush to upgrade to new Windows 8 devices..."

Janet I. Tu with The Seattle Times noted, "Indeed, Sherlund has cut his forecast of PC-and-Windows tablet shipments from a growth of 5 percent in 2013 to a decline of 1 percent. 'Windows 8 is awkward in that it tries to address the intuitive ease of use of a tablet with the compatibility and features of a PC,' he wrote in the note. 'For a consumer, they see no need for all this when a low priced tablet or smartphone is sufficient and they can easily learn a few alternatives to Office for the consumer needs.'"

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