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Microsoft's Windows falls 6% on slow PC sales

post #1 of 64
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Despite meeting expectations for its fiscal second quarter, Microsoft saw a decline in its bread and butter Windows business, causing net revenue fall slightly for the three months ending on Dec. 31.

The Redmond, Wash., software giant announced on Thursday that quarterly gains in its gaming, Office and server businesses offset a drop in Windows sales, though overall profit dipped slightly from the year ago period, reports Reuters.

The company posted a net profit of $6.62 billion or 78 cents per share for its fiscal second quarter, compared to the previous year's $6.63 billion or 77 cents per share.

Microsoft's per share performance beat the Street's expectations of 76 per share and saw a rise due to less shares outstanding than 2010.

The department that oversees the company's Windows OS saw a six percent drop in revenue from a year ago with $4.74 billion, while the business division posted a gain of three percent with $6.28 billion.

“We delivered solid financial results, even as we prepare for a launch year that will accelerate many of our key products and services,” said Chief Executive Officer Steve Ballmer. “Coming out of the Consumer Electronics Show, we’re seeing very positive reviews for our new phones and PCs, and a strong response to our new Metro style design that will unify consumer experiences across our phones, PCs, tablets, and television in 2012.”


Microsoft CEO Steve Ballmer at the Consumer Electronics Show in Las Vegas | Source: Reuters


Windows PC sales were reported to have taken a hit from Apple's popular iPad tablet, forcing competitors to play catch-up with products like upcoming ultrabooks and tablets. However, Intel and Microsoft are said to be butting heads on component and software costs which could price Windows 8 tablet computers out of reach for most consumers.

According to estimates, combined Mac and iPad sales will make Apple the world's largest global PC vendor in 2012.
post #2 of 64
Need insight on this? Just read the other news items on this site from today, and see who is looking to the future.
post #3 of 64
For their sake I hope customer take to Windows 8 -and- Apple doesn't release an iPad with a HiDPI display or this won't just be a short term trend.

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"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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"The real haunted empire?  It's the New York Times." ~SockRolid

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post #4 of 64
Quote:
Originally Posted by 801 View Post

Need insight on this? Just read the other news items on this site from today, and see who is looking to the future.

I was thinking more about Kodak when I read this article.

[on another note... Google missed and is down 9% in AH]
na na na na na...
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na na na na na...
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post #5 of 64
When I think of Microsoft I get this mental image of a massive old tree that's grown close to a very high cliff edge and there is an ominous creaking sound and loose dirt falls from a few dangling roots ....
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post #6 of 64
I missed that first read ... Monkey Boy says they have tablets .... And a television coming in 2012? Did he mean MS have a Television or am I missing something here? Or does he just mean win mobile 8 on tablets and TVs via XBox or something?
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post #7 of 64
Quote:
Originally Posted by digitalclips View Post

When I think of Microsoft I get this mental image of a massive old tree that's grown close to a very high cliff edge and there is an ominous creaking sound and loose dirt falls from a few dangling roots ....

I don't know you, but every time I see Balmer I see anger, greed and complete lack of interest for anything but money.
post #8 of 64
Quote:
Originally Posted by igorleandro View Post

I don't know you, but every time I see Balmer I see anger, greed and complete lack of interest for anything but money.

Yet Apple has one of the highest profit margin.

Like what they are trying to do with books and education
post #9 of 64
Quote:
Originally Posted by AppleInsider

According to estimates, combined Mac and iPad sales will make Apple the world's largest global PC vendor in 2012.

Almost everyone contributes declining Windows sales to the iPad.

Last year there was a survey stating Mac users keep their computers 3 times longer on average than Windows/PC users. With 50% of Mac sales going to first time Mac buyers it is a significant year-over-year build-up of lost Windows sales.

So for every first time Mac buyer Microsoft loses 3 Windows sales over time.
post #10 of 64
Quote:
Originally Posted by digitalclips View Post

When I think of Microsoft I get this mental image of a massive old tree that's grown close to a very high cliff edge and there is an ominous creaking sound and loose dirt falls from a few dangling roots ....

I like your image. All we have to do is kick back and watch for the next few years?
post #11 of 64
Quote:
Originally Posted by delreyjones View Post

I like your image. All we have to do is kick back and watch for the next few years?

pass the beer and chips and let's get a front seat.
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post #12 of 64
Quote:
Originally Posted by vonheim View Post

Almost everyone contributes declining Windows sales to the iPad.

Last year there was a survey stating Mac users keep their computers 3 times longer on average than Windows/PC users. With 50% of Mac sales going to first time Mac buyers it is a significant year-over-year build-up of lost Windows sales.

So for every first time Mac buyer Microsoft loses 3 Windows sales over time.

I agree and it is accelerating that's for sure.
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post #13 of 64
Quote:
Originally Posted by island hermit View Post


[on another note... Google missed and is down 9% in AH]

And that's before they have the cinder block of Motorola Mobility around their neck.
post #14 of 64
Well they've been hyping how great Windows 8 is going to be, you'd think they were already taking orders for it. How will that help sell Windows 7 today?

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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post #15 of 64
I wish somebody would find a way to create a plausible rumor that Apple is working on reinventing the microwave oven. Microsoft would start talking about slapping a metro UI on microwaves so fast your head would spin.
post #16 of 64
Quote:
Originally Posted by Suddenly Newton View Post

Well they've been hyping how great Windows 8 is going to be, you'd think they were already taking orders for it. How will that help sell Windows 7 today?

That would require some thinking by Monkey Boy, so of course they didn't consider this. Apple are brilliant at keeping quiet until they can deliver and when they do it is always better than the rumors and one thing more ... Like today with education. MS still live in the past and think they can hype 8, keep selling 7 and everyone will just do as they expect.
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post #17 of 64
Quote:
Originally Posted by igorleandro View Post

I don't know you, but every time I see Balmer I see anger, greed and complete lack of interest for anything but money.

I just think dumb, sweaty flab but that's just me ...
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post #18 of 64
Quote:
Originally Posted by 2oh1 View Post

I wish somebody would find a way to create a plausible rumor that Apple is working on reinventing the microwave oven. Microsoft would start talking about slapping a metro UI on microwaves so fast your head would spin.



Yup, coming out in fall 2012, right in time for the holiday season - the iZap, a 11-inch microwave with Siri integration, and a door featuring a Retina Display screen to show you your food cooking. (The high-end model will also have a front-facing camera and internal screen, so your food can see you waiting for it to be cooked.)
post #19 of 64
"The company posted a net profit of $6.62 billion or 78 cents per share for its fiscal second quarter, compared to the previous year's $6.63 billion or 77 cents per share."

This is not bad at all. Despite slow PC sales, Microsoft is still very profitable. Windows Phone will just add to more profits in 2012. All the negative spin on this forum will not change this fact.
post #20 of 64
Quote:
Originally Posted by slapppy View Post

"The company posted a net profit of $6.62 billion or 78 cents per share for its fiscal second quarter, compared to the previous year's $6.63 billion or 77 cents per share."

This is not bad at all. Despite slow PC sales, Microsoft is still very profitable. Windows Phone will just add to more profits in 2012. All the negative spin on this forum will not change this fact.

HAHA Now he's arguing that lowered marketshare is fine so long as you increase your profits. At least he's consistent with his crazy anti-Apple arguments.

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

Reply

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

Reply
post #21 of 64
Quote:
Originally Posted by slapppy View Post

"The company posted a net profit of $6.62 billion or 78 cents per share for its fiscal second quarter, compared to the previous year's $6.63 billion or 77 cents per share."

This is not bad at all. Despite slow PC sales, Microsoft is still very profitable. Windows Phone will just add to more profits in 2012. All the negative spin on this forum will not change this fact.

Kodak said similar things on the way down. Face it Slappy, a decline has been going on steadily for a long time and it is accelerating. Get out while you can, come on over to the light
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post #22 of 64
Quote:
Originally Posted by slapppy View Post

"The company posted a net profit of $6.62 billion or 78 cents per share for its fiscal second quarter, compared to the previous year's $6.63 billion or 77 cents per share."

This is not bad at all. Despite slow PC sales, Microsoft is still very profitable. Windows Phone will just add to more profits in 2012. All the negative spin on this forum will not change this fact.

Apple hit $400 billion today and an all time share high.

How about you comment on that right now and we can get it over with?

Originally posted by Marvin

Even if [the 5.5” iPhone] exists, it doesn’t deserve to.
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Originally posted by Marvin

Even if [the 5.5” iPhone] exists, it doesn’t deserve to.
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post #23 of 64
Quote:
Originally Posted by Tallest Skil View Post

Apple hit $400 billion today and an all time share high.

How about you comment on that right now and we can get it over with?

i will comment..

apple is a small ant compared to real companies that don't do toys, like saudi aranco.

lol

apple is doomed.
post #24 of 64
Quote:
Originally Posted by pedromartins View Post

i will comment..

apple is a small ant compared to real companies that don't do toys, like saudi aranco.

lol

apple is doomed.

Now you're left with comparing apple with an company that makes nothing, was fortunate enough by luck of geography to have a product that is high in demand worldwide. They don't have to innovate or even think much about it! Just drill baby drill!!
post #25 of 64
Quote:
Originally Posted by slapppy View Post

"The company posted a net profit of $6.62 billion or 78 cents per share for its fiscal second quarter, compared to the previous year's $6.63 billion or 77 cents per share."

This is not bad at all. Despite slow PC sales, Microsoft is still very profitable. Windows Phone will just add to more profits in 2012. All the negative spin on this forum will not change this fact.

Microsoft could keep churning out profits on total cruise control, but it's earnings growth that really matters, and that's where Microsoft is having problems.
Please don't be insane.
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Please don't be insane.
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post #26 of 64
Quote:
Originally Posted by slapppy View Post

"The company posted a net profit of $6.62 billion or 78 cents per share for its fiscal second quarter, compared to the previous year's $6.63 billion or 77 cents per share."

This is not bad at all. Despite slow PC sales, Microsoft is still very profitable. Windows Phone will just add to more profits in 2012. All the negative spin on this forum will not change this fact.

I've been thinking about shorting MS for a while. These numbers seem just a little too conveniently similar to last year's numbers ... smells like accounting manipulation to me ... and a serious downward trend for MS. You can manipulate the numbers for a few quarters ... but, eventually you have to reveal the deficiencies.
post #27 of 64
Didnt this happen the year windows 7 came out? Who would buy a pc with windows 7 when windows 8 is coming out?

I think this is due to microsoft announcing windows 8 so early and not because of apple. Lets see if this trend keeps up when windows 8 comes out.
post #28 of 64
Quote:
Originally Posted by slapppy View Post

"The company posted a net profit of $6.62 billion or 78 cents per share for its fiscal second quarter, compared to the previous year's $6.63 billion or 77 cents per share."

This is not bad at all. Despite slow PC sales, Microsoft is still very profitable. Windows Phone will just add to more profits in 2012. All the negative spin on this forum will not change this fact.

Actually profit per share is up only because of MS's large share buyback program. As was mentioned, there are less shares out than same time last year.

As far as WP7 goes, they will first have to stem the losses from that before thinking about profits. So far there is no evidence that sales are increasing, either here or abroad.
post #29 of 64
Quote:
Originally Posted by SolipsismX View Post

HAHA Now he's arguing that lowered marketshare is fine so long as you increase your profits. At least he's consistent with his crazy anti-Apple arguments.

Err, isn't that what's been said about Apple here, even though I argue otherwise?
post #30 of 64
Quote:
Originally Posted by melgross View Post

Err, isn't that what's been said about Apple here, even though I argue otherwise?

I'm pointing out slapppy's 180° turn on marketshare and profits.

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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post #31 of 64
Quote:
Originally Posted by majortom1981 View Post

Didnt this happen the year windows 7 came out? Who would buy a pc with windows 7 when windows 8 is coming out?

I think this is due to microsoft announcing windows 8 so early and not because of apple. Lets see if this trend keeps up when windows 8 comes out.

Well, from the comments about it on forums at Anandtech, usually a reliable source of MS fans, and Arstechnica, which also has more than its share, this isn't popular so far. It seems as though Metro on the desktop is universally disliked. Sure some writers like it, but then they always like the new and shiny. It's also their job to like these new things, otherwise they would have little to write about.

But from polls of CIO's, it seems as though business is staying away from Win 8.

This could be another "Vista Moment" for MS. Success is not assured.
post #32 of 64
Quote:
Originally Posted by SolipsismX View Post

Yes, which is the point of my post.

Ah, it didn't look that way.
post #33 of 64
Quote:
Originally Posted by melgross View Post

Well, from the comments about it on forums at Anandtech, usually a reliable source of MS fans, and Arstechnica, which also has more than its share, this isn't popular so far. It seems as though Metro on the desktop is universally disliked. Sure some writers like it, but then they always like the new and shiny. It's also their job to like these new things, otherwise they would have little to write about.

But from polls of CIO's, it seems as though business is staying away from Win 8.

This could be another "Vista Moment" for MS. Success is not assured.

If are doing half to Win8 what they did to WP7 I think it will be the best version of Windows yet. Win7 is pretty great for what it is.

I did see some PCs at CES that would likely fit the whole dual-UI system of Win8 but I feel that most of it is looking poor. I think they screwed themselves on the tablet front. They need WP7 designed for a tablet UI, not Win8 with Metro. They could have had those flying in 2011 with great ecosystem support to Win7 and they might have carved themselves out a decent Enterprise business and even helped pull their smartphones up a bit. If Apple can release that HiDPI iPad this year with all other things being equal I think I they will have locked up the iPad market like they did the iPod market.

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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post #34 of 64
Quote:
Originally Posted by vonheim View Post

Last year there was a survey stating Mac users keep their computers 3 times longer on average than Windows/PC users. With 50% of Mac sales going to first time Mac buyers it is a significant year-over-year build-up of lost Windows sales.

So for every first time Mac buyer Microsoft loses 3 Windows sales over time.

That statement sounds like BS based on nothing but first principles.

The average PC life-cycle is somewhere between 3 and 4 years. That would make the average Mac life-cycle between 9 and 12 years.

We don't know how that average was reached, but I would find it hard to imagine for every one person buying a new Mac every 5 years there is either another person using a Mac that is between 13 to 19 years old or 4 people using a Mac between 10 and 14 years old.
post #35 of 64
Quote:
Originally Posted by Firefly7475 View Post

That statement sounds like BS based on nothing but first principles.

The average PC life-cycle is somewhere between 3 and 4 years. That would make the average Mac life-cycle between 9 and 12 years.

We don't know how that average was reached, but I would find it hard to imagine for every one person buying a new Mac every 5 years there is either another person using a Mac that is between 13 to 19 years old or 4 people using a Mac between 10 and 14 years old.

the average PC life lasts until the warranty expires. My Mac is 6.5 years old and will probably be replaced this year if a new iMac comes out.
post #36 of 64
Quote:
Originally Posted by Firefly7475 View Post

That statement sounds like BS based on nothing but first principles.

The average PC life-cycle is somewhere between 3 and 4 years. That would make the average Mac life-cycle between 9 and 12 years.

We don't know how that average was reached, but I would find it hard to imagine for every one person buying a new Mac every 5 years there is either another person using a Mac that is between 13 to 19 years old or 4 people using a Mac between 10 and 14 years old.

I've certainly read studies that show Macs are used longer than the average non-Mac PC but 3-4x longer seems like a natural exaggeration of something that once was truthful.

I, like many on this forum, have extensive knowledge and experience with Windows from various PC OEMs and with Macs and can say that Macs due tend to have a longer lifecycle for many reasons. They are built better, they have better and simpler service since it comes from one company, less wonky updates issues since the OS is built for that specific machine, they come with no pre-installed crapware running in the background, they are easier to maintain, they require less 3rd-party SW for maintenance which can slow down a system, and they have different rules for running programs in the background and at startup without the user's interaction. All these things can make a Windows PC appear to be more broken and/or obsolete than it really is. Now some of these have surely become less of an issue with newer version of Windows but there are still more of these issues than on Macs.

Another thing that likely contributes to their longevity is their styling. Along with other factors it keeps them desirable and their value high. For these reasons users might not want to get rid of them but instead store them away or simply deprecate their primary use to something less interactive with the user.

I recently got back an iMac G4 17" from circa 2003 that I gifted to family years ago. It was used about 8 years since it was purchased. I love the styling so I am planning on gutting the machine and putting in the organs of a modern Mac mini but with a few extras to use some of that additional dome space. Does that count as still using a Mac?

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

Reply

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

Reply
post #37 of 64
Quote:
Originally Posted by digitalclips View Post

pass the beer and chips and let's get a front seat.

Next up, Amazon.

Can't wait for their earnings announcement...
post #38 of 64
Quote:
Originally Posted by quinney View Post

And that's before they have the cinder block of Motorola Mobility around their neck.

True, that.

Although, they will probably have to let most of the 20,000 people go, which would be its own disaster.
post #39 of 64
Quote:
Originally Posted by Firefly7475 View Post

That statement sounds like BS based on nothing but first principles.

The average PC life-cycle is somewhere between 3 and 4 years. That would make the average Mac life-cycle between 9 and 12 years.

We don't know how that average was reached, but I would find it hard to imagine for every one person buying a new Mac every 5 years there is either another person using a Mac that is between 13 to 19 years old or 4 people using a Mac between 10 and 14 years old.

FWIW, my 2002 iMac is still in daily use, although by my Mom, and I have bought another 5 in the same time.
post #40 of 64
Quote:
Originally Posted by digitalclips View Post

Kodak said similar things on the way down. Face it Slappy, a decline has been going on steadily for a long time and it is accelerating. Get out while you can, come on over to the light

amen.
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