Microsoft (MSFT), Intel (INTC) No Longer a Major Alliance?

Microsoft Corporation (NASDAQ:MSFT) had developed a long-standing, strong relationship with chipmaker Intel Corporation (NASDAQ:INTC), which helped Microsoft dominate the PC world in the 1980s, 1990s and early 2000s. But as the computing world has shifted from a stationary personal computer to laptop to smartphone to tablet, the “Wintel” empire’s stranglehold on computers has slowly slipping. And with the world of technology being more mobile, can this alliance remain competitive in the new marketplace of the millennium?

One observer discusses the relationship of Microsoft Corporation (NASDAQ:MSFT) and Intel Corporation (NASDAQ:INTC) and its  virtual monopoly in the personal-computer space for the better part of 20 years, but things have changed as the world has become more intermingled and more mobile. However, at this point, when one throw in smartphones and tablets into the tech world, the “Wintel” alliance makes up less than half of the tech universe, and one analysis has that market share dropping to about one-third by 2016 – while the market itself doubles in size from where it is now.

According to a recent survey, Microsoft Corporation (NASDAQ:MSFT) currently has a 44-percent stake in the combined PC/smartphone/tablet market, while Intel Corporation (NASDAQ:INTC) owns 41 percent of the market. However, by 2016, the prediction is that Microsoft Corporation (NASDAQ:MSFT) will drop to 33 percent of market and Intel Corporation (NASDAQ:INTC) will fall to 29 percent. While that is still a pretty healthy share – considering the market is expected to double, that woudl still mean a larger number of devices would be run by the “Wintel” duet – it seems liek the signals are that Microsoft won’t have the impact it has had in the past decades.

There was no indication whether these market predicition make certain assumptions about the impending Windows 8 launch and/or any future OS versions and their impacts. But while the numbers say that Intel Corporation (NASDAQ:INTC) and Microsoft Corporation (NASDAQ:MSFT) won’t be the dominant presence they have been in tech, but investors – like hedge-fund manager Seth Klarman of Baupost Group – still may be encouraged by a significant numerical growth over the next four years.