Microsoft Has a Record Result – Windows Sales See a Six Point Drop

Posted by at 10:05 am on January 20, 2012

Microsoft on Thursday revealed record results but at the same time showed a six point drop in the core Windows business. It generated $20.5 billion in revenue in the fall, a five percent increase from the same season a year earlier. Most of the increases came from its server business and the Xbox-related Entertainment & Devices group, each of which grew their own revenue by 11 percent and 15 percent.

The Business division handling Office also grew three points and would have grown seven percent if not for an Office 2010 upgrade program. Even its Online Services section, which regularly loses money, saw its revenue up 10 percent.

While Microsoft sold 525 million Windows 7 licenses, that was a six point drop for Windows and Windows Live group’s core product. The company had already signaled that Thailand flooding and the resulting hard drive shortages would hurt its business. Microsoft blamed the six-point Windows drop on weak netbook sales. Netbook sales have usually dropped in the past two years as a direct result of the iPad and, to a small extent, Android tablets.

The company was optimistic that new ultrabooks and hope for Windows 8 would give it a positive 2012.

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