Microsoft Corporation (MSFT), Apple Inc. (AAPL) Big Players in This Gartner Report

When it comes to the PC market, there is no denying the fact that Microsoft Corporation (NASDAQ:MSFT) is one of the most talked about companies. The reason for this is simple: its Windows operating system has been powering many of these machines for quite some time. Going one step further, Apple Inc. (NASDAQ:AAPL), although not categorized as a PC by many, is often times lumped into this group for the sake of statistical reporting.

According to a recent study by Gartner, the PC market in Western Europe declined 20 percent during the second quarter of 2013. Was this expected? On some level the answer is yes. That being said, many are hoping things turnaround at some point; or at the very least stabilize.

Why is Microsoft Corporation (NASDAQ:MSFT) Hurting, and What About Apple Inc. (NASDAQ:AAPL)?

Steve Ballmer and company don’t like to see things like this because it means fewer people are going to rely on the Windows operating system. When sales decline it is only natural that MSFT takes a hit as well.

Just how bad were things during this quarter? With shipments around 100.9 million units, a decline of 19.8 percent was seen when compared to the same period of the previous year.

With all that being said, there is some good news for Microsoft Corporation (NASDAQ:MSFT) according to Meike Escherich, principal research analyst at Gartner:

“The market exit of the netbook PC, and vendors reducing their inventory to get the new Intel chips and Windows 8.1 have fuelled the decline in Western Europe.”

In other words, vendors are waiting around for Windows 8.1. When finally available, we may see an uptick in activity.

Now, let’s take a closer look at what this means to Apple Inc. (NASDAQ:AAPL) and head honcho Tim Cook.

Although Cupertino only managed the number six position in terms of shipments, the company saw a decline below the market average rate. In short, Apple was not hit nearly as hard as its competitors.

In an overall sense, this is something most people are expecting in all regions of the world – not just Western Europe. Fewer people are relying on PCs with the popularity of tablets and smartphones on the rise.

This could spell doom for Microsoft Corporation (NASDAQ:MSFT) in the years to come, but should not harm Apple Inc. (NASDAQ:AAPL) nearly as much.

Microsoft is not dead to investors, however, with these hedge fund managers sticking with the company: Sandy Nairn, Kelly Cardwell, Jeffrey Ubben, and James Litinsky.

Check out the video below for more on Windows 8.1:

Disclosure: none