Tomahawk, WI 10/17/2013 (BasicsMedia) – Microsoft Corporation (NASDAQ:MSFT) faces a number of challenges in 2013. Some of these challenges will find their way into 2014 thus creating a time of great uncertainty for investors and analysts alike. MSFT’s market cap currently stands at $290.26 billion, but the fact that it will be undergoing a bit of reorganization in 2014, in addition to hunting for a new CEO now that Steve Ballmer is retiring will make next year quite interesting. MSFT will not be a boring stock since there will be a lot of activities going on all the time. What will be their impact on MSFT?

 MSFT Quarterly Report Expected on October 24, 2013

MSFT will release its latest quarterly results on October 24, 2013. Most analysts believe that MSFT will offer investors one of the bumpiest rides they have experienced in a very long time. It should not be forgotten that the company recently acquired Nokia, at least a part of this giant phone maker. The company may face bumpy rides in the immediate future but its long-term prospects are still very good. Currently, MSFT needs to find a way of compensating the poor results attributed to declining PC sales all over the world. It needs alternative sources of revenue.

MSFT Suffering from Ever Declining PC Sales

The PC market does not seem to be improving or showing any sign of recovery. This is the sixth year when the PC sales have been on a decline. MSFT is one of the most severely affected companies in the world, due to the popularity of its Windows OS. The company has tried different things to shore up its revenues from the Windows OS by launching the Windows 8, which is expected to do quite well in tablets and other mobile devices. . The full effects of this launch are yet to be seen, and some analysts are saying MSFT has not earned what it expected.

Microsoft Office is the other area that might suffer and cause MSFT to suffer as well. Microsoft Office has been the biggest revenue stream for MSFT for a long time. The way things are going now, it seems as if things are about to change. As PC sales continue to decline, this will be felt in Microsoft Office. Consequently, MSFT will experience a drop in its shares. During the third quarter, PC sales dropped to 81.6 million units. I do not see these sales going back to the peak of 91 million units reported in September 2011. Such figures will never be achieved again.

MS May Suffer Organizational Turmoil

Bill Gates is not as active as he once was in MSFT. Steve Ballmer, a co-founder of MSFT, is contemplating resigning and not running again for the position of company CEO. There are other restructuring measures being undertaken at MSFT that will have serious implications for the company in 2014.  If this is not handled well enough, I foresee a situation where MSFT will be linked with organizational turmoil through much of 2014. If MSFT can improve its current ranking where Smartphones and tablets are concerned, 2014 could be a disappointing year.

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