Microsoft reports 4 per cent growth in revenue
The software giant, Microsoft Inc. started the year with strong sales. Despite competition posed by Apple’s best selling tablet – the new iPad, Microsoft still managed to sell its popular operating system, Windows 7 with remarkable outcomes.
On the three months ending in March 2012, Microsoft recorded a surge in revenue for its Windows (OS) division, an increase of about 4 per cent from last year’s US$4.6 billion.
Microsoft characterized the surge due to upstream businesses and partners purchasing licenses for its Windows 7 operating system.
The firm is also putting faith in its next generation operating system Windows 8 (including Windows RT) that would provide the company with more revenue since it is capable to power traditional PCs as well as touch-based tablet PCs.
While no exact date has been announced by Microsoft as regards to the date of launching of its new operating system, but analysts insisted that it could be unveiled as early as September or October of this year.
On other divisions in Microsoft however, things did not work as well as the Windows division. The entertainment division frail with shipment of the once popular entertainment video console – the Xbox 360 plummeted by 50 percent to about 1.4 million units. Analysts attributed this to the new trend of gaming – consumers are playing games on smartphones and as well as tablet computers.
Microsoft’s online division has been on the red for years due to steep competition posed by the Search engine giant, Google. Its Bing search engine suffered the most; however, Microsoft is able to narrow down the losses in the last quarter with decreased operating cost amounting to US$479 million as compared to US$776 million at the same time last year.
Below are some of the statements made by tech bloggers about Microsoft’s third quarter 2012 financial report:
Peter Bright on arstechnica.com stated:
Microsoft has published its numbers for the third quarter of its 2012 financial year and the company reports record revenue for the period with double digit operating income growth. Revenue for the quarter was $17.41 billion, up 6 percent year over year. Operating income was up to $6.37 billion, a 12 percent rise on the prior period. Net income and earnings per share were both down, at $5.11 billion and $0.60, respectively. [ More ]
Peter Pachal from Mashable.com commented:
Microsoft’s tablet strategy won’t be fully realized until the fall, when Windows tablets are expected to debut alongside the company’s new PC operating system, Windows 8.
Microsoft did take a hit in its Xbox division, with revenues dropping 16%, which Microsoft blames on a soft game console market. Nonetheless, the company remains upbeat about the Xbox platform, pointing out it’s currently the market leader, and has been for more than a year. [ More ]
NICK WINGFIELD of The New York Times stated:
In one of the most surprising developments, Microsoft said sales of its flagship software product, Windows, rose 4 percent in the fiscal third quarter, which ended on March 31. Analysts were expecting a drop in the business because of broader industry data showing weakness in the personal computer business. [ More ]
Microsoft reports 4 per cent growth in revenue
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