“The slump in global PC sales and broad economic weakness has battered Microsoft’s results over the last year, compounding already weakened demand for Windows Vista,” DiColo reports. “But on Thursday, the company moved to recharge revenue growth with the launch of its next-generation operating system, Windows 7.”
MacDailyNews Take: Funny, there seems to be no “slump” in Mac sales despite “broad economic weakness.” Apple just sold a record number of Macs, so Microsoft’s excuse rings hollow. More likely, people are tired of wasting their money on cheap poorly-faked Macs and are instead wisely investing in the real thing. And “next-generation” sounds so much more impressive than what it really is, a Vista service pack. “Window 7” is nothing more than lipstick on the Vista pig.
DiColo continues, “Revenue for its Windows unit, Microsoft’s largest division, was still down 39% from last year, and earnings for the division fell 52%. For the quarter ended Sept. 30, Microsoft reported earnings of $3.57 billion, or 40 cents a share, down from $4.37 billion, or 48 cents a share, a year earlier. Revenue declined 14% to $12.92 billion.”
“Analysts polled by Thomson Reuters expected earnings of 32 cents on revenue of $12.37 billion,” DiColo reports. “The company’s server and tools was the only one to post revenue growth, albeit 0.5% growth, while sales at the business division fell 11%. In online services, a small but important division, revenue decreased 5.8%… Meanwhile, Microsoft reduced its full-year operating expense guidance by $400 million to between $26.2 billion and $26.5 billion.”
Full article here.
MacDailyNews Take: Declined, decreased, fell, reduced, down, weakened, and battered. Any questions?
Nag, it’s pining for the fjords … oops, that’s Linux. =-)
It wouldn’t go “voom” even if you put 4 million volts through it!
=:~)
Sales of cheap hardware have not declined – at least, not a whole lot – and those systems still need an OS, yes? Is Linux on the desktop exploding? Haven’t seen THAT headline in the news.
Apparently, either the profit on XP is much lower than that on Vista or a whole lot of extra people have gone over to the pirate realm. Any thoughts?
I’ll remind you MAC sheep that these results don’t reflect Microsoft’s retail stores which were opened only yesterday and will be included in this current quarter’s results. I expect MSFT to blow the street away when you factor in their new retail presence and bright future products like Surface table technology and Windows Mobile 7. Windows 7 touch screen computers are already giving Cupertino fits. Buh-bye MAC.
Your potential. Our passion.™
mdn, do your homework.
microsoft deferred revenue for windows this quarter (becuase of the windows 7 start they stopped booking windows revenue a few weeks ago). including deferred revenue profits and revenue are only down 5% yoy. that is still not good but better than most expected, i guess.
What? You mean Zune sales aren’t shooting Microsoft profits through the roof? I’m devastated!
Oh, I hope Ballmer stays long enough to take Microschitz completely down the tubes.
With Apple getting very tough with their patents, Microschitz won’t have as many things to copy, therefore hastening its demise.
@ Sarasota,
They paid $300 to $400 for that net book 6 to 8 months ago.
I can see them spending $150 to upgrade the OS.
Oh, you were being sarcastic.
The important number is earnings. That dropped by 0.8B. They still make a huge profit on their revenue but it is dropping significantly. In a few more years they will down to 1B profit per quarter or less. It would be great to see them post a loss in the near future.
MS better invest a lot more in the Mac Business Unit just to hedge their bets. They owe at least that much to their shareholders.
Ralph, the point is that yoy revenue for Apple was up, M$ was down.
Deferred schmerred.
It appears that even Microsoft isn’t immune from the Windows Tax.
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You said:
MacDailyNews Take: Declined, decreased, fell, reduced, down, weakened, and battered. Any questions?
To me you could have summed it up in a single word…
That word bandied about buy pundits from 1996 thru.. well till about last year..
Sounds like BELEAGUERED to me….
Just an observation from North Pole on a Friday night. I have honestly been enjoying watching Microsoft circling a slowly draining, mostly clogged bowl these last 3 years or so…
Weakened demand for vista?? If I was stupid and wanted an ms os, why would I buy vista with msw7 ??
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The slump is because people have started to stop buying pos pc and moved to mac
Any questions? One. How is this Mac news?
@ralph from Berlin
Apple revenue is starting to catch MSFT. I NEVER thought it would be remotely possible. Granted much of it has to do with the iPhone (aka OS X mobile version)
All this talk about the recession… and people are buying supposedly not buying… right? nope… They ARE buying (albeit not the smartest move for anyone with debt) more expensive stuff because of QUALITY… Macs/iPods/iPhones.
Look, i refuse to buy an iPhone until it is released on MY carrier. But i dont condemn Apple… They know how to make $. Hopefully this exclusive AT&T;deal will stop….
Btw Ralph, been to your city… bunch of nice new buildings… Great transportation system.
also… I am NOT a fanboy…. i run Windows on my Mac… because frankly i have no choice. but hey, its no hate on MSFT… i still prefer my OS X…
I await the next market crash…. one in which even AAPL is not immune… tho as a company they will fare best among tech as they are no longer only a PC hardware/software maker, but a media device producer.
Doomed!… They are, for human’s sake!
@MDN
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“Window 7″ is nothing more than lipstick on the Vista pig.”
I take objection to that statement. The pigs name is Windoze. Vista and Window 7 are just the shades of lipstick.
YES!
Sorry kids, but for me: It’s a lot more fun reading about the facts about Microsoft circling down the drain than it is to read the latest hair-brained rumor about the mythical iTablet.
The vultures are circling…
YES!
Sorry kids, but reading the facts about Microsoft circling down the drain is a lot more fun than reading the latest hair-brained rumor about a mythical iTablet.
And to cry-baby trolls: Turn about doom-mongering is fair play.
The vultures are circling…