Feeds

Microsoft blames poor Windows sales on PC slump

Fingers Thai flood whipping boy and netbook decline

Boost IT visibility and business value

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? ®

Build a business case: developing custom apps

More from The Register

next story
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
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.