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Microsoft profit dips despite Windows 8 sales boost | Microsoft profit dips despite Windows 8 sales boost |
(35 minutes later) | |
Microsoft has reported a fall in profits despite a boost in sales from the technology giant's new Windows 8 operating system. | Microsoft has reported a fall in profits despite a boost in sales from the technology giant's new Windows 8 operating system. |
Net profit for the final three months of the year was $6.4bn (£4.1bn), down 4% from a year earlier, while revenue was up 3% at $21.5bn. | Net profit for the final three months of the year was $6.4bn (£4.1bn), down 4% from a year earlier, while revenue was up 3% at $21.5bn. |
The Windows arm of the firm performed well, with revenues up by a quarter, following the launch of Windows 8. | The Windows arm of the firm performed well, with revenues up by a quarter, following the launch of Windows 8. |
The results come on the day that Apple shares fell 12% on disappointing sales. | The results come on the day that Apple shares fell 12% on disappointing sales. |
Much of Microsoft's revenue growth was eaten up by an increase in spending on sales and marketing, while stronger earnings at the Windows division were partly offset by a decline in sales of the company's Office products. | Much of Microsoft's revenue growth was eaten up by an increase in spending on sales and marketing, while stronger earnings at the Windows division were partly offset by a decline in sales of the company's Office products. |
"Our big, bold ambition to re-imagine Windows as well as launch Surface and Windows Phone 8 has sparked growing enthusiasm with our customers and unprecedented opportunity and creativity with our partners and developers," said chief executive Steve Ballmer. | "Our big, bold ambition to re-imagine Windows as well as launch Surface and Windows Phone 8 has sparked growing enthusiasm with our customers and unprecedented opportunity and creativity with our partners and developers," said chief executive Steve Ballmer. |
'Nice quarter' | |
Analysts said the company benefited from operating in a number of different technology sectors, protecting it from weakness in the PC market. | Analysts said the company benefited from operating in a number of different technology sectors, protecting it from weakness in the PC market. |
"[Microsoft] has multiple revenue streams that are still very nice businesses... I would say it's a very nice vanilla quarter," said Colin Gillis at BGC Financial. "In this environment, we'll take it." | |
The company did not release sales figures for its new tablet computer, Surface - its answer to Apple's hugely successful iPad. | |
The reason, some analysts said, was simple. | |
"I don't think they want to provide that because it won't be impressive," technology analyst Patrick Moorhead said. | |
Microsoft's results come a day after Apple reported record quarterly revenues of $55bn. However, flat profits, disappointing iPhone sales figures and fears about future growth prospects pushed Apple shares down 12% on Wednesday, wiping about $50bn off the company's value. |