Microsoft down over 4% in late trading; Windows revenue under pressure

“Microsoft’s Windows OEM Pro and non-Pro revenue both fell 13% Y/Y in FQ2,” Eric Jhonsa reports for Seeking Alpha.

“The Pro slowdown is blamed on slowing business PC sales, academic discounts, and ‘mix returning to pre-Windows XP end of support levels,'” Jhonsa reports. “The non-Pro decline is due to unit growth coming from cheaper hardware that Microsoft [for which] is providing discounted license fees.”

Jhonsa reports, “Commercial Windows volume license revenue fell 3%.”

Read more in the full article here.

MacDailyNews Take: 🙂

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  1. I just don’t get supplying the software engines only for PCs.

    Got to supply the whole car with an engine in today’s market.

    Otherwise you are hobbling yourself in trying to make an engine that fits every type of box, including el-cheapos.

  2. Once corporations started to support BYOD (Bring Your Own Device), it was the first real threat to Microsoft’s dominance in the enterprise environment. From what I’ve observed, including two college graduated girls, and being a Mac Support Specialist, most kids want the Mac laptops over any other brand for a variety of reasons.

    Of course, number one is the cool factor. I’ve heard this time and again from our youthful users.

    Number two, size and weight, with very good battery life.

    Number three, everything just works. Connecting to a network, adding a printer, etc. is such a snap with Mac OS X. For the most part, it’s all easily automated.

    Plus the fact, if you absolutely have to have it, you can run your favorite flavor of Window’s. Add iCloud, integration with iPhone’s, iPad’s, and desktop Mac’s, nobody else is doing it as well and elegantly as Apple does.

    Hopefully some of Apple will rob off onto IBM, as they work together developing their new business apps with Apple. Microsoft is the new IBM, your grandfathers choice of computer.

  3. > The Pro slowdown is blamed on slowing business PC sales…

    Once again, the “pro-” Microsoft media experts blame “slowing PC sales” for declining Windows revenue. They have it backwards. Practically no one (especially in business) wants Windows 8, and going with Windows 7 means putting an OS that is approach six years old on “new” PC purchases. In the real world, Microsoft should be blamed for causing “slowing PC sales.” (Meanwhile, Apple’s “PC” sales are booming.)

  4. Slightly off topic, but have you heard the rumors that IBM may be laying off 20 to 25% of its workforce?

    And, if the rumors are true, it looks even uglier than just a layoff. It appears they are pushing people into divisions that are sold off and giving out bad reviews like candy so they can fire people. It seems they are doing everything they can (scrupulous or unscrupulous) to get rid of people without full severance packages or unemployment compensation.

  5. Here’s my biggest worry… Although I’m glad to see Microsoft faltering, I’m not happy to see Apple not giving enough attention to enterprise. OS X Server is a shadow of its former self. There is no dedicated server hardware, and they make it very hard for businesses to manage software licensing. It’s great that we can install software from the app store using a company Apple I.D., but do we want to give out that Apple I.D. password to every employee so they can perform updates? Luckily, I found a solution (or rather, a hack) to allow users to perform updates without the Apple I.D. password.

    1. Stop with this shit. It happened before with Lotus, Wordperfect and Novell and it absolutely will happen again. Ballmer rammed MSFT into the iceberg at full steam and now nothing can stop the one trip to the deep ocean depths miles below.

      To steadfastly believe otherwise is the height of delusion bordering on wilful insanity. Successful big businesses do whatever is necessary to stay alive even if it means ditching it’s traditional desktop computer OS.

        1. It’s just another never-ending torrent of shit and you’re just riding along with it like nothing happened. I would seriously consider getting your head out of your arse before it’s too late, son.

    2. First of all… Macs can run Windows, so your argument is pretty ignorant.

      Second, “Windows Mobile” is an oxymoron – big businesses have been dumping Microsoft for years; first to RIM and now to Apple (iOS, iPhone, iPad).

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