Microsoft has poor 3. quarter results
Posted: 20 Oct 2012, 14:01
 | Turnover is 8 % down to 16 Billion Dollars. The result is down by 26 % to 5,31 Bilion Dollars. The former flagship Windows is suffering the most and is down by 33 % from 4.87 Billion Dollars to 3.24 Billion. The result was reduced from 3,27 Billion Dollars to 1.65 Billion Dollars. There is an explanation for this, because many Windows7 PC's have been sold with a Windows8 update guarantee. This means that 1,36 Billion Dollars will be booked in the quarter when Windows8 is launched. So the moment Windows 8 is launched you can get ready to hear about some remarkable financial success - that is already provided for by this poor 3rd Quarter result. |
If we adjust the results accordingly Windows sales are only down 9 % which reflects the slowing down PC market.
Microsofts biggest division is the "Business division" that holds the Office products. This division also contributes the most to the bottom line. Even here sales are down by 2.4 % to 5,5 Billion Dollars and the result is down by 1.9 % to 3.65 Billion Dollars.
The division that is growing the most is "Server and Tools" that has grown to become the second biggest division at Microsoft.
Sales are 4,55 Billion Dollars and the result is 1,75 Billion Dollars. And that is now bigger than the Windows division.
So even over at Microsoft Windows is loosing importance.
Entertainment and devices (Xbox +hardware) is at a stand still.
And the smallest divvision is "Online services" this is the division that is set up to compete with Google and it did grow by 8,7 % to 697 Million Dolars. The result is stil negative with minus - 364 Million Dollars.
These September figures show how important the Windows 8 launchng will be. The consumers are leaving PC's behind for tablets and phones and the Enterprises will conservatively hold on to Windows 7 or older for as long as they can.
It still is a very open question how successful that launching will be...
Personally I am a firm believer in a failure for Windows 8.
But as you have been reading in the news: Bill Gates thinks Windows 8 will be the next big thing - so it is only my opininon.
Rumor has it that Mitt Romney will be voting for the Republicans too...