Just days before unveiling Windows 8, Microsoft in October reported third-quarter earnings that proved its OEM partners weren't the only ones grappling with sluggish PC sales.
For its first fiscal 2013 quarter, ending Sept. 30, Microsoft reported revenue of $16 billion, down 7.9 percent from the $17.4 billion it reported one year earlier. Net income was $4.5 billion, down more than 22 percent year-over-year, and Microsoft's CFO Peter Klein referred to the PC market as being "challenged" during a conference call with investors.
Aware that its bread-and-butter PC market is shrinking, Microsoft is attempting with Windows 8, along with its Windows Phone OS, to elbow its way into the tablet and smartphone market. But so far, the company has faced a largely uphill battle, attempting to claw market share away from market leaders Apple and Google.