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Microsoft announced a very healthy quarterly earning report which show a 31 percent increase to $5.2 billion. This fiscal third quarter report has exceeded analyst estimates.
While the figure is very positive for Microsoft, there is a rather negative aspect to the report, this is the second straight quarter that revenue from their Windows division has dropped from the previous year. This may cause investors to worry more about the future of Microsoft operating system development. Are they going to be facing a gradual decline over coming years?
The company are still facing serious threats from the Apple iPad and other tablet computers which use rival operating systems, such as Google Android. It appears that many people are moving away from Windows and into the mobile sector for ‘casual' computing, such as checking email, chatting and general browsing demands.
Revenue for Microsoft in the Windows division fell by 4 percent, slightly worse than the fall off in PC shipments which was tracked by research firm IDC.
Thankfully Microsoft have other revenue streams to fall back on, but it does cause concerns that their Windows platform could be facing a slow, but gradual decline. This could also force them to start moving even quicker on the next release of Windows, which always helps to boost company profits after a public release.
KitGuru says: Is the tablet market damaging Microsoft software? it would appear so.
Windows 8 will cure that, but I agree, the tablet market is killing them. THey suck too at mobile stuff so they will just lose it, instead of gaining it elsewhere.
Phone 7 sucks and they dont make their own tablets, even if they did they wouldnt sell well. can you imagine getting windows 7 on a tablet to boot immediately? I hate Apple but they do it right.
Trying to buy a laptop recently reminded me how badly Microsoft are let down by PC manufacturers. Seems everyone tries to push inappropriate and/or old generation spec onto you, all swamped in a mush of junk 3rd party software no-one wants. As soon as you find something you do want they say they haven’t got it and produce something else unsuitable and the whole dance begins again.
After the success of the X-Box Microsoft should have started making their own laptops, and they’d now be far closer to the pulse and able to move into tablets more easily. Apple’s products aren’t always great, but their vision leaves Microsoft miles behind.