Microsoft Sees 24 Percent Increase in Windows Revenue, Drop in Profit
January 24, 2013 8:20 PM
comment(s) - last by
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.
This article is over a month old, voting and posting comments is disabled
RE: Windows 8 sucks
1/26/2013 5:03:37 AM
It's not so much that I look down on tablet gaming, it's that most tablet games genuinely suck. Very few are worth my time of day. Ninety percent of them are word games, cut the rope, angry birds in some other scenario everyone wows over... these games are neat/fun for about five minutes and then quickly uninstalled. They are certainly NOT a replacement for my computer/console games. When I pick up my phone it's pretty much never to play games. Actually the only reason I have any games on it at all is so I have something to do while I'm sitting on the can at work. Yes tablet games will get better, this is obvious and I have absolutely no doubt that they will some day be what PC gaming is today. Thing is, your assertion that PCs are just going to stand still is dead wrong. Progress will be made. Hell, have a look at the newest cryengine stuff and tell me anything on your tablet comes close to it. Yes, SOC'S are great, but their focus is mainly on power efficiency and not on maximum performance. That's what makes them ideal for tablets and cellphones. PC's on the other hand could care less about power consumption for the most part, and therefor they can focus purely on performance. In fact it's only been in recent years that laptops became as "good" as desktops performance wise and that's still a stretch. You can by a laptop with an i7 and 16GB RAM sure, but it'll last you about 3 hours tops, cost a ton of money and is only about half to three quarters as powerful as a desktop at equal price (certainly can't touch my main system). There is no arm processor that can come close to touching anything even one of xeons can do, and there wont be for quite a few years because that's not their focus. By the time there is, my new xeons will be far superior. So really it's a question of how much processing power do we really need. As applications get smarter and AI becomes more standard and we demand complex tasks be faster and faster, well as always, the sky's the limit. There will always be (at least for the foreseeable future) a place for desktop and traditional laptops. They might not be as big a market as the tablets are but they aren't fading away into obscurity as some people would have you believe. Even Apple realizes it and that's why they still sell them.
"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
Inspiron Laptops & 2-in-1 PCs
September 25, 2016, 9:00 AM
The Samsung Galaxy S7
September 14, 2016, 6:00 AM
Apple Watch 2 – Coming September 7th
September 3, 2016, 6:30 AM
Apple says “See you on the 7th.”
September 1, 2016, 6:30 AM
Apple sued because of iPhone 6 Touch Disease
August 31, 2016, 7:00 AM
Get Ready to wait in line – iPhone 7 due September.
August 18, 2016, 7:15 AM
Most Popular Articles
Smartphone Screen Protectors – What To Look For
September 21, 2016, 9:33 AM
UN Meeting to Tackle Antimicrobial Resistance
September 21, 2016, 9:52 AM
Walmart may get "Robot Shopping Carts?"
September 17, 2016, 6:01 AM
5 Cases for iPhone 7 and 7 iPhone Plus
September 18, 2016, 10:08 AM
Update: Problem-Free Galaxy Note7s CPSC Approved
September 22, 2016, 5:30 AM
Latest Blog Posts
Burlington Gun Attack
Sep 27, 2016, 5:00 AM
Who is in Risk of Getting Oral Cancer?
Sep 23, 2016, 6:02 AM
France Bans Plastic Eating Utensils in Restaurants
Sep 18, 2016, 10:49 AM
Progress Against Acute Myeloid Leukemia
Sep 17, 2016, 5:30 AM
Apple Watch Series 2 - Number 1 in the Customer Satisfaction.
Sep 7, 2016, 6:19 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information