According to the earnings report ofThursday, Microsoft had a breakout quarter and year suggesting itshighest yearly revenues of $69.94 billion. However, a detailed studyreveals that most of its earnings are not derived by Windows. It’shigh time for Microsoft to understand and stop pushing Windows.
The revenue of Windows for the quartercame down by 1% and this is the consecutive second time that it hasdecreased. However, the company claimed that they had a sale ofaround $17.4 billion in the quarter, which suggests to an overallincrease in 8% over the previous quarter.
So, the biggest question arises that,if the sales of windows has decreased where did the sales increase?The answer is Xbox 360 and Kinect, which showed an increase of 30% insales over the previous quarter. Thus, for the whole year it hadsales of $8.9 billion and the operating profit was $1.3 billion. Thisin itself concludes to a gain of 114% in comparison to $618 millionin the previous year.
Microsoft office also claimed anincrease in sales along with a jump of 7% in this quarter and 16% forthe year. In the meanwhile, servers and tools grew 12% for thequarter and around 11% for the year. Surprisingly, no product havingWindows showed any growth. Microsoft also didn’t break out thesales of Windows Phone 7.
So the last message is that Microsoftmust not fasten its future to Windows. Windows will continue toremain as the cash cow for Microsoft but there is no growth for it.One of the biggest areas of growth is the tablets which have hurt thesales of Windows because people are turning towards them instead ofnotebooks. However, using the Windows as the tablet OS would be aterrible mistake because by the time Windows 8 would be released andis ready for tablets, iPad and Android would sway the market.



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