Feeds

Microsoft blames poor Windows sales on PC slump

Fingers Thai flood whipping boy and netbook decline

Internet Security Threat Report 2014

Microsoft has released its quarterly results, and reports that Windows revenues are down 6 per cent when compared with the previous quarter.

For the last three months, Microsoft not only saw its Windows division revenues fall 6 per cent, but its business division grew just three per cent despite strong sales of Lync, Exchange, and SharePoint. This is compared to 11 per cent growth in its server and tools group, with online services up 10 per cent and the entertainment division seeing revenues climb 15 per cent to $4.24bn, with Xbox Live subscriptions up by a third.

Microsoft had warned that PC sales were going to be worse than expected, down about 2 to 4 per cent in its estimation, in part due to equipment shortages following last year’s floods in Thailand. These problems will last at least until the next quarter, the company said in an earnings call with analysts and reporters on Thursday.

But it wasn’t all down to the floods, Microsoft’s GM of investor relations Bill Koefoed explained. Customers were, as he put it, faced with “competing form factors” – a polite way of saying that tablets are selling like hotcakes and Redmond still hasn’t a good-enough OS for that market. The collapse in popularity of netbooks was also blamed, with the systems falling from 8 per cent of the total PC market last year to just 2 per cent today.

“We are pleased with our results this quarter, despite the decline in PC sales,” said Microsoft’s CFO Peter Klein. “We are well positioned for future growth.”

But then again, what else would you expect him to say? ®

Remote control for virtualized desktops

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Big Content outs piracy hotbeds: São Paulo, Beijing ... TORONTO?
MPAA calls Canadians a bunch of bootlegging movie thieves
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
Hungary's internet tax cannot be allowed to set a precedent, says EC
More protests planned against giga-tariff for Tuesday evening
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.
Mitigating web security risk with SSL certificates
Web-based systems are essential tools for running business processes and delivering services to customers.