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  (Source: AFP)
Microsoft still has quite a bit of gas left in the tank

Apple isn't the only tech company rolling around in cash these days. Just two days ago, Apple announced total Q3 revenue of $15.7 billion and profit of $3.25 billion.

Microsoft reported Q4 earnings today and its results were equally impressive. Microsoft announced quarterly revenue of $16.04 billion and a net profit of $4.52 billion. Revenue and net profit were up 22 percent and 48 percent respectively from the same period a year ago.

Not surprisingly, Windows 7 has been a smash hit for Microsoft and the company announced that over 175 million licenses have been sold. And despite the report which came out last week saying that Office 2010 sales were starting off weak, Microsoft says that it had a "successful launch of Office 2010".

“This quarter’s record revenue reflects the breadth of our offerings and our continued product momentum,” said CFO Peter Klein. “The revenue growth, combined with our ongoing cost discipline, helped us achieve another quarter of margin expansion.”

Revenue was up for all of Microsoft's major divisions, as indicated by the following increases from the previous year:

  • Windows & Windows Live Division -- $4.5B (44 percent increase)
  • Server and Tools -- $4B (14 percent increase)
  • Microsoft Business Division -- $5.2B (15 percent increase)
  • Entertainment and Devices Division -- $1.6B (27 percent increase)

“We saw strong sales execution across all of our businesses, particularly in the enterprise with Windows 7 and Office 2010,” said COO Kevin Turner. “Our transition to cloud services is well underway with offerings like Windows Azure and our Business Productivity Online Services, and we look forward to continuing our product momentum this fall with the upcoming launches of Windows Phone 7 and Xbox Kinect.”

Microsoft's strong Q4 must be music to Steve Ballmer's ear after a recent report came out this week calling for his ouster due to Microsoft's stagnant stock price. However, Ballmer must still show that his company is ready to tackle the exploding smartphone market with Windows Phone 7.

KIN may have been an embarrassing debacle for Microsoft, but it is a relatively small fish in the grand scheme of things -- Windows Phone 7 needs to be a hit for Microsoft to look credible in the consumer mobile devices sector.

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RE: Small fish?
By Mitch101 on 7/22/2010 8:21:09 PM , Rating: 2
Microsoft is paying attention to the details taking all the things Apple and Droid did right.

Microsoft is giving Windows Mobile 7 devices to 90,000 of their employees Similar to what Apple did with the iPhone. They are also going to give them to the people who purchase a kin. After all whats another 50 people. ;) Not Microsoft's fault but the carriers service plans that killed the kin.

Microsoft is also paying the top developers to port their iPhone apps/games to the Mobile 7 platform and might even be moding the language base to make the port much easier. Really they only need to pay the top 100 apps to be ported to get the attention is needs. Does anyone really need 100,000 apps?

As for the delays I suspect Microsoft realizes it needs killer apps to make it attractive and thats what they are building up to.

The rumor is the Zune HD2 is based on identical hardware that the Mobile 7 phone device will have and between the Mobile 7 Phone and Zune HD2 if done correctly they will be able to target the PSP and Nintendo DS market too.

Two devices similar hardware multiple markets.

The smartest thing Apple is finally doing or is able to do is getting out from Under AT&T. T-Mobile is getting the iPhone soon and Verizon around January.

The illusion is Microsoft vs Apple the reality is Microsoft/Apple vs Google.

RE: Small fish?
By sebmel on 7/22/2010 8:34:34 PM , Rating: 2
"The illusion is Microsoft vs Apple the reality is Microsoft/Apple vs Google."

I'm not sure that Google is the threat DTech suggests. The Chinese have taken Android and developed it for themselves... linking to their own services... cutting out ad revenue for Google. Android will fragment.

I think the outsider entering the race will be Samsung. Most devices Apple makes are flash based (even the Mac will be shortly) and Samsung is a big flash memory player. All they need to do is develop Android in-house and they become an OS + hardware manufacturer, like Apple, but with an enormous advantage of in-house flash prices.

If Samsung make a good, cheap Android based iPad competitor they become a big player overnight.

"We shipped it on Saturday. Then on Sunday, we rested." -- Steve Jobs on the iPad launch

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