Microsoft reports increased revenue due to Windows 8, profit down

By on January 25, 2013, 8:30 AM

Microsoft reported a 2.7 percent increase in revenue for the quarter ending December 31, 2012, from $20.9 billion a year ago to $21.5 billion over the past three months. Even with extra help from Windows 8 and supporting hardware, the company saw a 3.7 percent drop in profit year over year, from $6.62 billion to $6.38 billion.

Windows 8 might not have been the shining star that Microsoft had hoped for but it did give the company a boost in that division. We do know that the company sold 60 million Windows 8 licenses as of earlier this month, however. Redmond saw revenue shoot up 24 percent in their Windows division for the quarter to $5.88 billion. This was reportedly good for an 11 percent increase, we’re told.

Interestingly enough, the company still is keeping quiet with regards to how many Surface with Windows RT tablets have been sold to date – a hot topic among investors and analysts alike. The bigger brother to the currently-available tablet, Surface Pro, will go on sale February 9 starting at $899 for the 64GB model.

On the flip side, Microsoft’s Entertainment and Devices division, which happens to be home to the Xbox, dropped 11 percent year over year to $3.77 billion. Furthermore, the Business division which is awaiting the release of the new Office fell 10 percent to $5.69 billion.

Share value in Microsoft dropped roughly two percent in after-hours trading following the earnings report.

User Comments: 5

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1 person liked this | Skidmarksdeluxe Skidmarksdeluxe said:

Everybody seems to be reporting a decrease in profits. As far as I know the world is still in recession. Maybe that could be one of the reasons.

Cota Cota said:

It wouldn't be that wrong to assume most of the W8 sells are from OEM sells whit a sightly share whit users that actually bought it or upgrade it.

I had gave W8 a lot of patience but it just gives me bile.

Jim$ter said:

I agree Cota...I too gave it a shot..I love a lot of the desktop improvements so what I did was install Start8 and I'm very happy now. I get all the improvements with none of the metro garbage...I can still get to it if I want but, I don't!

MilwaukeeMike said:

Everybody seems to be reporting a decrease in profits. As far as I know the world is still in recession. Maybe that could be one of the reasons.

Yeah, no kidding... the surface is a business user's tablet. Every business in the country right now just saw their taxes go up, along with the costs coming this year and next with Obama care. There's also no indication at all that the economy is going to improve. Low interest rates really hurt lenders, and those are going to be around for a couple years. No new shiny tablets for the sales force this year.

For the personal user, they also just saw their taxes go up because of the payroll tax increase. They can't benefit from the low interest rates because their home values are too low to refinance. Also, anyone who works for a large company, small company or is self employed (yeah, everyone) is seeing company benefits cut for all the same reasons. This means no extra money for a cool toy.

And people wonder why Apple's outlook has declined, even though past sales have been fine... cause it doesn't really matter what the iPhone 6 can do if no one has any extra money to buy one.

Your best bet for affording a new gadget is get yourself fired, sign up for unemployment to get a check, sign up for 18 credits at your local tech college, get financial aid for the 18 credits, drop 6 so you can remain a full time student and pocket the extra financial aid money. it's all perfectly legal, and the easiest way to get a free $500 for your new Surface.

m4a4 m4a4 said:

Increased revenue due to Windows 8, but profit down? Sounds like they are almost giving W8 away with the lower prices...

Good guy Microsoft?

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