Microsoft Sees 24 Percent Increase in Windows Revenue, Drop in Profit
January 24, 2013 8:20 PM
Microsoft reported a 2.7 percent increase in overall revenue thanks to a small boost from Windows 8
Windows 8 didn't hit the ground running
the way Microsoft thought it would after the October 2012 release, but it did offer a small boost in the company's latest financial earnings report.
For the quarter ended December 31, 2012, Microsoft reported a 2.7 percent boost in revenue to $21.5 billion from $20.9 billion in the year-ago quarter. However, the Windows maker saw a 3.7 percent drop in profit to $6.38 billion (76 cents a share) from $6.62 billion (78 cents a share) one year ago.
Microsoft saw a revenue increase of 24 percent in its Windows division to $5.88 billion (or 11 percent when adjusted for early sales of Windows 8) for the second quarter, which was the first to include Windows 8.
Microsoft didn't offer sales figures for its first homemade tablet,
Surface with Windows RT
. The new version -- Surface with Windows 8 Pro -- is expected to hit store shelves on February 9.
“Our big, bold ambition to reimagine Windows as well as launch Surface and Windows Phone 8 has sparked growing enthusiasm with our customers and unprecedented opportunity and creativity with our partners and developers,” said Steve Ballmer, CEO at Microsoft. “With new Windows devices, including Surface Pro, and the new Office on the horizon, we’ll continue to drive excitement for the Windows ecosystem and deliver our software through devices and services people love and businesses need.”
Windows 8, which was released in late October 2012, was met with plenty of criticism for its massive redesign. However, many PC makers (such as Dell) were hoping that it'd be the saving grace for the PC market, where hardware sales had been declining over the years as mobile devices (smartphones and tablets) exploded onto the scene.
But many PC makers
didn't see a huge increase in sales
with Windows 8. And while Microsoft hasn't released sales figures for its Surface tablet yet, reports last month indicated that the new device took a sales hit due to
a lack of distribution
. Microsoft had only offered the Surface with Windows RT online and at Microsoft stores (and there are a little over 60 stores total in the U.S.).
In mid-December, Microsoft finally allowed
to sell the Surface.
Surface with Windows RT also made its way to Australia in mid-December, and will do so in other countries in the following months.
Earlier this month, Microsoft announced that
60 million Windows 8 licenses were sold
60 million licenses sold doesn't mean that there are 60 million Windows 8 devices out there.
In today's financial earnings report for Q2, Microsoft also announced declines in its Entertainment and Devices division (including Xbox) of 11 percent to $3.77 billion and its Business division (including Microsoft Office) of 10 percent to $5.69 billion from a year earlier.
Microsoft's shares were down 2.1 percent in after-hours trading today to $27.63.
"It's okay. The scenarios aren't that clear. But it's good looking. [Steve Jobs] does good design, and [the iPad] is absolutely a good example of that." -- Bill Gates on the Apple iPad
Quick Note: Microsoft Announces 60 Million Windows 8 Licenses Sold
January 8, 2013, 5:30 PM
Windows 8 Usage Sinks Below Vista Levels
January 4, 2013, 12:39 PM
Windows 8 Fails to Drive Significant New PC Sales
December 24, 2012, 8:40 AM
Microsoft Allows Third-Party Retailers to Sell Surface with Windows RT
December 12, 2012, 12:44 PM
Microsoft Surface RT Sales Hurt by Lack of Distribution
December 8, 2012, 9:53 AM
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