Microsoft Sees 24 Percent Increase in Windows Revenue, Drop in Profit
January 24, 2013 8:20 PM
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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.
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RE: Windows 8 sucks
1/25/2013 4:53:14 PM
I agree with this assessment. In an earlier forum discussion I talked about the problems that I was having with Win 8 (For me it was app compatibility, bluetooth, updating issues, and just general bugginess) and I solved some of the problems. Unfortunately Win 8 users aren't as good as Linux users, if you have a problem with Linux you simply start a thread "I hate win 8 because of..." and you will have all of your problems solved, here it was mostly "deal with it" or "I didn't have that problem". I do appreciate the help of a user that mentioned that you can load Win 7 drivers (fixed my bluetooth problem).
Anyways, after playing around with it I managed to make my computer start up in no time flat and made it run smoother and faster, but I still couldn't get my Zune software or Audials to work on it. I realize that I am one of 6 people that use the Zune, but I love the thing and I prefer the software over Xbox Music. As for Audials, I bought version 8 years ago, then I just bought version 9 a couple months ago. Just after Win8 was released they fixed the issue and called it version 10 and their response is to buy the new one...F@%# them.
I decided to add a second hd to my laptop in raid 0 configuration and just for fun loaded Win 7 onto it (by that I mean I initially went to reinstall Win8 but because I created the usb install on my other laptop it wouldn't install due to their antipiracy crap, so I put on 7 first). I did this about a week ago and it has been running so smoothly and without a single issue that I don't think I'm going to upgrade it back. I will wait and see what happens with it though, but I personally prefer 7, the experience is magnitudes better. It takes longer to boot, but since I rarely start it up (maybe once a week or 2) its not really an inconvenience.
"Vista runs on Atom ... It's just no one uses it". -- Intel CEO Paul Otellini
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