Microsoft's Windows falls 6% on slow PC sales
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.
Comments
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]
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.
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
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.
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?
I like your image. All we have to do is kick back and watch for the next few years?
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.
[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.
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.
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 ...
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.)
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.
"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 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