Slideshow:

And Wall Street took note. Twice this year, investment banking giant Goldman Sachs published reports downgrading Microsoft's value.

In October Goldman rating from "buy" to "neutral" and cut back its stock price outlook. This month, Goldman predicted that 2011 will be a difficult year for Microsoft with top-line growth dropping from 12 percent to 7 percent due to intense competition in the smartphone space and the lack of a concrete iPad competitor.

"Microsoft is still seen as a profitable franchise," says analyst Kay. "But one that's in decline."

Windows Phone 7 and the Kin Debacle