Microsoft: $21.46 billion in revenue for Q4 2012

Microsoft has announced its financial results for the fourth quarter 2012 calendar year (Microsoft's second quarter for its 2013 fiscal year) with overall revenues of $21.46 billion for the quarter. The company had a net profit of $6.38 billion for the quarter, which is down slightly from $6.62 billion from the same period a year ago. The results were still ahead of analysts forecasts.

There's no information at the moment about sales of Microsoft's Surface tablet in the company's press release. However, Microsoft CEO Steve Ballmer did have a statement which said:

Our big, bold ambition to reimagine 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, With new Windows devices, including Surface Pro, and the new Office on the horizon, we’ll continue to drive excitement for the Windows ecosystem and deliver our software through devices and services people love and businesses need.

Microsoft did say that its Windows division had $5.9 billion of revenue, up 24 percent from the same period a year ago, thanks mostly to the launch of Windows 8. Its business division had revenues of $5.691 billion, down 10 percent from its same period a year ago. The Entertainment and Devices division, which includes its Xbox business, had revenues of $3.772 billion, down 11 percent from the same period a year ago.

Microsoft will hold a conference call with analysts later today that should offer more information on the company's current financial state, and hopefully more info on sales of the Surface tablet.

Source: Microsoft | Image via Microsoft

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I find it hard to believe they have such a high revenue due to Windows 8.

I don't believe it, not one bit. People I talk to in person don't like it. I have only met one person I know that bought it.

Either something fishy is going on with these figures or there are a lot of STUPID people out there. If this is the direction Microsoft is taking, I am switching to Linux. Microsoft is killing open source with Windows 8.

Let's not forget folks since we are in the realm of financials that Microsoft deferred 500 million in revenue from Q2 of 2012 and 1.6 billion in revenue from Q3 of 2012 in relation to the release of Win8.

So... Microsoft's Q4 revenue is about 4 billion which is significantly lower than last years Q4 revenue of over 6 billion.

Condere said,
Let's not forget folks since we are in the realm of financials that Microsoft deferred 500 million in revenue from Q2 of 2012 and 1.6 billion in revenue from Q3 of 2012 in relation to the release of Win8.

So... Microsoft's Q4 revenue is about 4 billion which is significantly lower than last years Q4 revenue of over 6 billion.

shhhh they don't talk about loss like this unless its apple lol

The fanboism on this site is quite amazing. Folks, there is life outside of your computers. Take a shower, call up girl, have a good dinner, sex on the beach, and just live life.

Straight from the conference call


OEM sales strong,and continuing in a healthy pattern

Windows upgrades grew over 40%,thanks to demand from consumers and volume licensing

Demand for windows 8 devices exceeded hardware available

So in conclusion

Windows 8 is doing awesome and no one can refute that

I'll have some of whatever you're smoking, brah!

http://www.neowin.net/news/rep...-of-slow-windows-8-pc-sales

You're familiar with the term "spin", right? Hell, Microsoft and some PC manufactures are already playing the blame game.

Sorry, there's just not much buzz around Windows 8, aside from die-hard Microsoft fans. Me being one of them. Just because Microsoft is spending a boatload on TV ads and product placement in popular shows, that doesn't mean people are flocking to get Windows 8.

Edited by COKid, Jan 24 2013, 11:33pm :

COKid said,


Sorry, there's just not much buzz around Windows 8, aside from die-hard Microsoft fans. Me being one of them. Just because Microsoft is spending a boatload on TV ads and product placement in popular shows, that doesn't mean people are flocking to get Windows 8.

empty statements with nothing to back it up. you are not the consumer market.

you guys are just mad its a hit and you were wrong. time to stop being in denial. you don't like it ?good, use something else,but spreading things that aren't true time after time shows how desperate some of you guys are getting.

vcfan said,

empty statements with nothing to back it up. you are not the consumer market.

you guys are just mad its a hit and you were wrong. time to stop being in denial. you don't like it ?good, use something else,but spreading things that aren't true time after time shows how desperate some of you guys are getting.

Why do not you spend some time analyzing data in a more serious way?
When MS launched W7 "Windows & live division" revenue increased 70%, with Windows 8, (only) 24%.
IMO there are several reasons to explain the difference:

W8 comes after W7, W7 came after Vista; whatever personal opinions are Vista was not very popular.

There is a Worldwide financial crisis and there is a limit to how much even US citizens can drawn in debts.

Contrary to many others I do not believe that we are in a post PC era, at least not yet; granted I do not replace my desktop as often as I was doing six, seven years ago: my two 21" screens in the office and all my programs run happily on my four years old box. Like it or not many "average" users do not feel the need to spend even just $40 to replace the OS in their desktops.

personally I foresee, unless of course something apocalyptic happens, a return of the 70% revenue increase when W9, a more mature and hopefully more flexible OS, will launch.

Fritzly said,

Why do not you spend some time analyzing data in a more serious way?
When MS launched W7 "Windows & live division" revenue increased 70%, with Windows 8, (only) 24%

that comparison has nothing to do with windows 8 sales. windows vista was pure crap,so windows 7 was badly needed. According to people here, windows 7 is perfect,and windows 8 is not needed, yet revenues are up %24?

And windows 8 is priced way cheaper, so you cant predict sales using this revenue figure.

What are you talking about? W8 is so cheap that undoubtedly it would have sold well during the promotion; this is more than predictable, it is obvious.
You could argue that being offered for such a low price a comparison of the revenues could be unbalanced but, again, what volume of sales would W8 have generated without the promotion?
If you want a more accurate report wait for the next financial report.
In the meantime keep also in mind that your 24% increase includes $622 million deferral, without this it would have been 11%.

vcfan said,

that comparison has nothing to do with windows 8 sales. windows vista was pure crap,so windows 7 was badly needed. According to people here, windows 7 is perfect,and windows 8 is not needed, yet revenues are up %24?

And windows 8 is priced way cheaper, so you cant predict sales using this revenue figure.

can I get an AMEN .. be careful there be trolls in these waters. Also stocks went marginally UP..even thought profits where DOWN so obviously this was expected and is GOOD...further more windows 8 was too cheap to offset revenue increase..and the JUMP in sales from vista to windows 7 where higher compared windows 7 to 8..this is why revenue increased dramatically then

It's clear Microsoft windows 8 is a disaster .
A OS built for surface forced on desktop users with hideous Ui . No wonder why the industry is calling windows 8 Microsofts new windows ME .

They need to go back to the drawing board with it. And re release this garbage . The underside of win8 are great but the GUI is starting to prove to be the reason for POOR sales . Remember OEM stickers are not sales dell can return them in bulk if needed.

TurboShrimp said,
It's clear Microsoft windows 8 is a disaster .
A OS built for surface forced on desktop users with hideous Ui . No wonder why the industry is calling windows 8 Microsofts new windows ME .

They need to go back to the drawing board with it. And re release this garbage . The underside of win8 are great but the GUI is starting to prove to be the reason for POOR sales . Remember OEM stickers are not sales dell can return them in bulk if needed.

sorry my friend,the information you are fed is totally wrong.

there was a decrease in PC sales by %6, because there wasn't enough windows 8 hardware available,confirmed by Microsoft,and OEMS. That's on the OEMs not windows 8.In fact,windows upgrades grew over %40.

Are you surprised that the upgrade at $39.99 would have been a success? I am more interested to see what will happen after the end of January.

vcfan said,

there was a decrease in PC sales by %6, because there wasn't enough windows 8 hardware available,claimed by Microsoft

Fixed that for you.

TurboShrimp said,
It's clear Microsoft windows 8 is a disaster .
A OS built for surface forced on desktop users with hideous Ui . No wonder why the industry is calling windows 8 Microsofts new windows ME .

They need to go back to the drawing board with it. And re release this garbage . The underside of win8 are great but the GUI is starting to prove to be the reason for POOR sales . Remember OEM stickers are not sales dell can return them in bulk if needed.

Bath Salts?

TurboShrimp said,
This just in sales are down but don't dare say anything about Microsoft loss not on this site lol
What's funny about your statement is their sales are up in the divisions everybody thinks are doing horribly and down in what most think are doing well. Windows is up, Business is down, Entertainment is down. Overall, their revenue is up but profitibility is down a small amount. They went from a 31% margin in 2011 to a 29% margin in 2012.

TurboShrimp said,
don't dare say anything about Microsoft loss not on this site lol

A loss? Microsoft lost money? You really have no clue, do you?

MrHumpty said,
Overall, their revenue is up but profitibility is down a small amount. They went from a 31% margin in 2011 to a 29% margin in 2012.

If you exclude all the revenue deferrals, Windows is up, Business is up, and Entertainment is almost flat (down 2%).

Microsoft practices extremely conservative accounting. Because this makes it very difficult to compare results from year to year, I always look at the adjusted numbers to determine how the business actually did. (I use GAAP numbers when calculating long-term performance, as it is necessary to subtract out all the stupid acquisitions they've made.)

TomJones said,

If you exclude all the revenue deferrals, Windows is up, Business is up, and Entertainment is almost flat (down 2%).

Microsoft practices extremely conservative accounting. Because this makes it very difficult to compare results from year to year, I always look at the adjusted numbers to determine how the business actually did. (I use GAAP numbers when calculating long-term performance, as it is necessary to subtract out all the stupid acquisitions they've made.)

And entertainment being down has a reason that was expected - the Xbox is nearing the end. People have bought their 360s and for the next holiday season there will be a new version to fill that gap.

MrHumpty said,

Look, another kid who can't read financials.

Yep and they totally forget that Microsoft deferred money from the previous two quarters to this quarter.

Congrats to microsoft for selling all of those windows 8 OEM licenses that are still sitting on the shelves collecting dust.

Order_66 said,
Congrats to microsoft for selling all of those windows 8 OEM licenses that are still sitting on the shelves collecting dust.

yeah,because the first 40 million got lonely on the shelves in the first month, so OEMS decided to buy another 20 mill the next month just to keep the first 40 mill nice and warm.

Order_66 said,
Congrats to microsoft for selling all of those windows 8 OEM licenses that are still sitting on the shelves collecting dust.
Yes, because, until now, oem licenses weren't counted in their financials.

Order_66 said,
Congrats to microsoft for selling all of those windows 8 OEM licenses that are still sitting on the shelves collecting dust.

I asked you in another comment, and apparently you are ignoring me so I will ask here again - do you have Sno Caps in stock at the BB store you manage?

Order_66 said,
Congrats to microsoft for selling all of those windows 8 OEM licenses that are still sitting on the shelves collecting dust.

Yes, would you like a biscuit for educating us with that invaluable piece of inside information you just gave out?

javagreen said,

Yes, would you like a biscuit for educating us with that invaluable piece of inside information you just gave out?

He claims to be a manager at a store that is part of a "big electronics chain." He also claims that Macs are flying off the shelves, and no one wants to buy the Win8 PCs from his store but the corporate HQ keeps sending him new Win8 computers, so they keep stacking up.

nohone said,

He claims to be a manager at a store that is part of a "big electronics chain." He also claims that Macs are flying off the shelves, and no one wants to buy the Win8 PCs from his store but the corporate HQ keeps sending him new Win8 computers, so they keep stacking up.

Don't tell him that Vista trumps OSX in most OS marketshare stats.

MrHumpty said,
Don't tell him that Vista trumps OSX in most OS marketshare stats.

Oh, you mean where Timmy Cook himself said that there are 30 million Macs in use today, but that horrible Vista sold over 10x that number?

vcfan said,

yeah,because the first 40 million got lonely on the shelves in the first month, so OEMS decided to buy another 20 mill the next month just to keep the first 40 mill nice and warm.

So you left Engadget to come over here and spew that same BS? I mean really? The people over here are just as smart.

nohone said,

I asked you in another comment, and apparently you are ignoring me so I will ask here again - do you have Sno Caps in stock at the BB store you manage?

I do not work in a BB store but I started buying BB shares few months ago. I am not incline to fanboyism when money is involved, I prefer the old Cicero aphorism: "Pecunia not olet" (money does not smell).
My bet is that BB10 will be popular, very popular. I could be wrong, I could be right... time will tell.

TechieXP said,
The people over here are just as smart.

Oh I have no doubt of that, in fact over here they are "smartier" /s

btw I have never left engadget, I post over there about as much as I post over here.

Fritzly said,

I do not work in a BB store but I started buying BB shares few months ago. I am not incline to fanboyism when money is involved, I prefer the old Cicero aphorism: "Pecunia not olet" (money does not smell).
My bet is that BB10 will be popular, very popular. I could be wrong, I could be right... time will tell.

that comment about working in a BB was not directed towards you, but Order_66. he has been on here and another website claiming that the store he manages are not selling Win8 computers while Macs are flying off the shelves, and because of his limited anecdotal evidence (which I do not believe) then Microsoft has lied in their report.

and I do not subscribe to the money from one company is tainted, while from another it is good. I wish Apple stock did not drop today, both for the company's sake, and those who lost a fortune in retirement.

This sort of consistency in performance is why I will choose MS long term.
other companies rise and fall, the industry as a whole ebbs and flows.

Microsoft have a long term strategy which may often look like stumbling, but it's calculated.

Rosyna said,
You chose MSFT because of its long-term flat stock price?

Yes. It's called value investing.

Instead of chasing stocks as they're zooming up, you go for the company whose stock price is lower than where it should be, based on its profits.

And so it has been for the last thirteen years..... it is becoming more a "generation" investment than a "long term" one.
Said that I am not complaining: in the '90s trading MS shares I bought a Condo; after 2000 I started accumulating them and ready to cash when Ballmer will leave.

LOL at all the jealous haters who were dead wrong. Analysts can suck it.


The Windows Division posted revenue of $5.88 billion, a 24% increase from the prior year period. Adjusting for the net deferral of revenue for the Windows Upgrade Offer and the recognition of the previously deferred revenue from Windows 8 Pre-sales, Windows Division non-GAAP revenue increased 11% for the second quarter. Microsoft has sold over 60 million Windows 8 licenses to date.

It's not really jealousy or hate. Some of us Microsoft fans are simply concerned about the direction of the company. Specifically with Windows 8. It needs some serious tweaking. All the slick TV commercials in the world won't change that. Otherwise, Microsoft is doing fine, even in the phone arena.

See, you can be a fan of a company and still offer criticism. Not everything is so black and white.

vcfan said,

Windows 8,and how no one was going to buy it.

Nobody ever said that. Obviously OEMs will buy them by the millions and plenty of end-users will to. People simply said that 8 won't do amazingly well compared to 7. And it's not...

Astra.Xtreme said,

Nobody ever said that. Obviously OEMs will buy them by the millions and plenty of end-users will to. People simply said that 8 won't do amazingly well compared to 7. And it's not...

there is zero evidence its doing worse than 7,and plenty of evidence its doing better. In fact Microsoft reiterated that upgrades are still outpacing 7.

Astra.Xtreme said,

Nobody ever said that. Obviously OEMs will buy them by the millions and plenty of end-users will to. People simply said that 8 won't do amazingly well compared to 7. And it's not...

B.S. We read over and over that Win8 is selling horribly, that computers are sitting on store shelves - I just replied to a comment where an Apple fanboy said that Macs were flying off of the shelves of the store he manages, while Win8 computers sit, nobody buys them, but corporate keeps sending them more and more Win8 computers. We hear over and over how millions of "sold" licenses of Win8 have never sold, that OEMs keep buying more and more licenses, but they are not selling them.

Quite the contrary to what you write, people have been saying that Win8 will not sell. Not only has it sold, but it is selling so that the Windows division is up 24% in sales with 100s of millions of dollars of deferred sales. Sales have a better start than Win7 did, and all the protests and complaining that it is not true have held when the actual data is examined.

vcfan said,

there is zero evidence its doing worse than 7,and plenty of evidence its doing better. In fact Microsoft reiterated that upgrades are still outpacing 7.

Err... so why then is basically every analyst saying the exact opposite? I can't say I've seen a single source that showed 8 doing better than 7. OEMs are complaining, investors are complaining, end-users are complaining, Microsoft themselves are complaining, but blaming it on everybody else, etc etc. Win 8 has caused such an insane outcry by every corner that there's no way you can justify saying it's doing well.

It was just released so companies are rushing to get new product on the shelves and have to buy licenses. There's huge hype about the Surface and all the other new tablets. But just wait until it all settles down. Don't get me wrong, I don't want Win 8 to fail, but I'm not going to be oblivious to the matter either.

http://blogs.barrons.com/techt...ehind-win-7-adoption-curve/

COKid said,
It's not really jealousy or hate. Some of us Microsoft fans are simply concerned about the direction of the company. Specifically with Windows 8. It needs some serious tweaking. All the slick TV commercials in the world won't change that. Otherwise, Microsoft is doing fine, even in the phone arena.

See, you can be a fan of a company and still offer criticism. Not everything is so black and white.

No. The problem is you all expect to much from a first run product. When Windows Phone 7 appeared it is obvious MS rushed it and it wasnt complete because they were already behind the curve. One more year out and MS would not have had a chance to get in. Especially with RIM trying to come back. One reason Apple rushed to get iPhone out before Google released Android.

Windows 8 is suffering the same issues as WP7. New concept. Not totally complete. Needs some tweaking. It will get better by Windows 9. Hardware also has to catch up so the software gets even better. Devs will atch up as they make more apps and likely x86 apps will also offer some touch capable features. At least Microsoft tried. What is Apple? Overpriced Macs with no touch and no touch OS on it. Yet they popularized touch with iOS, but cant get the Mac there fast enough?

I give MS an A for effort. You all love Apple who jumped out with iOS. Then you say Microsoft need to do the same...when they do you all criticize them saying its abad move, its going ot fail...blah blah. The sad reality is, when it comes to MS, none of you know what you want from thm.

If you think you can do better, write Bill Gates a letter stating you want to run his company and explain what moves u will make that would make him want to fire Ballmer and hire you. If you cant step up and do that then stop criticizing Microsoft.

Astra.Xtreme said,

Err... so why then is basically every analyst saying the exact opposite? I can't say I've seen a single source that showed 8 doing better than 7. OEMs are complaining, investors are complaining, end-users are complaining, Microsoft themselves are complaining, but blaming it on everybody else, etc etc. Win 8 has caused such an insane outcry by every corner that there's no way you can justify saying it's doing well.

It was just released so companies are rushing to get new product on the shelves and have to buy licenses. There's huge hype about the Surface and all the other new tablets. But just wait until it all settles down. Don't get me wrong, I don't want Win 8 to fail, but I'm not going to be oblivious to the matter either.

http://blogs.barrons.com/techt...ehind-win-7-adoption-curve/

Analysts are well known bull****ters, all you are doing is getting your misinformation from other websites.

Toysoldier said,

Analysts are well known bull****ters, all you are doing is getting your misinformation from other websites.

The thing is that the Apple fans have been complaining that it is the analysts fault for Apple's stock dropping the way it did, that they are wrong because iPhone/iPad sales are great and Apple should not be downgraded. But yet a 20 day old article, written by an analyst about supposed poor sales, written before we saw the real numbers showing a big jump in the Windows division sales, that is to be believed and proves Microsoft is in real trouble.

nohone said,

The thing is that the Apple fans have been complaining that it is the analysts fault for Apple's stock dropping the way it did, that they are wrong because iPhone/iPad sales are great and Apple should not be downgraded. But yet a 20 day old article, written by an analyst about supposed poor sales, written before we saw the real numbers showing a big jump in the Windows division sales, that is to be believed and proves Microsoft is in real trouble.

Here you go again bringing Apple into this. Surprise surprise... How about you not turn this into an Apple vs Everybody else flame war, okay?

If you can find me more some proof showing that Windows 8 is doing well, then I'd be all ears. A simple Google search brings up half a million analysts complaining about how disappointing 8 has been so far. So you're saying that all these people are wrong? Those people are payed to be right, so I highly doubt that every single one of them is putting their career on the line to lie...

Astra.Xtreme said,

Here you go again bringing Apple into this. Surprise surprise... How about you not turn this into an Apple vs Everybody else flame war, okay?

If you can find me more some proof showing that Windows 8 is doing well, then I'd be all ears. A simple Google search brings up half a million analysts complaining about how disappointing 8 has been so far. So you're saying that all these people are wrong? Those people are payed to be right, so I highly doubt that every single one of them is putting their career on the line to lie...

1) I didn't bring up apple, I brought up their fans.
2) All the proof that is needed is not some supposed analyst who claims that Win8 is selling poorly, the real proof is in the numbers -sales in the Windows division up 24%.

nohone said,

1) I didn't bring up apple, I brought up their fans.
2) All the proof that is needed is not some supposed analyst who claims that Win8 is selling poorly, the real proof is in the numbers -sales in the Windows division up 24%.

Oh, and BTW, I don't think analysts have much of a problem with sales being that this morning MSFT stock is up 1.25%. If the analysts were worried, we would have seen a sell off today but that isn't happening.

nohone said,

1) I didn't bring up apple, I brought up their fans.
2) All the proof that is needed is not some supposed analyst who claims that Win8 is selling poorly, the real proof is in the numbers -sales in the Windows division up 24%.

1. Umm no... You brought up more than just the fans. All of which was completely irrelevant to the conversation and straight up flame bait.
2. Wow, so Microsoft releases a new OS and the sales for that quarter go up. Shocker!
How then do you explain this:
http://www.theregister.co.uk/2...01/24/windows_8_blame_game/
Like I said previously, even Microsoft themselves are saying 8 isn't doing well. So why are you claiming otherwise against Microsoft and every analyst out there? You've proven nothing...

nohone said,

Oh, and BTW, I don't think analysts have much of a problem with sales being that this morning MSFT stock is up 1.25%. If the analysts were worried, we would have seen a sell off today but that isn't happening.

It's up 0.23% right now and the NASDAQ is also up the same 0.23%... Investors don't sell off as soon as trading opens. There's strategy to it, especially when the market as a whole is up. AMD had terrible results and they're up over 2% today. The market isn't as black and white as you seem to think.

Astra.Xtreme said,
Investors don't sell off as soon as trading opens.

Except for yesterday in the case of ...

Oh never mind, you will just start screaming "hater" as usual.

Okay, let me elaborate on how the stock market works. Analysts make predictions and then when the quarterly results come out, those predictions are compared to the actual, and the stock goes up or down depending on how right or wrong the analysts were. Analysts of Apple were expecting insane numbers, and while the numbers were really good, they weren't the earth shattering numbers they were expecting. Look at how many stupid people were so convinced that their share price would go over $1000. Now everybody is laughing at them. The AAPL stock has been overpriced and over-hyped for years, but Apple has been able to pull huge results out of their ass and people kept on investing. It's finally back to more realistic terms, but I even think it's still too high. Apple relies on basically 2 products to make it's profits, and that forest is getting really crowded.

Now let's talk about Microsoft. This story is pretty brief. Analysts expected 8 wouldn't sell that well, so when the results came out that showed they predicted right, the investors acted accordingly. They made good profits regardless of what 8 is doing. Their stock for the week is up under 4%, which basically means nothing since the market as a whole had a really really solid week. OEMS had to buy millions of licenses, so sales were obviously going to be high. The Q1 and Q2 results will tell the actual story.

nohone said,

Over the years, with all the trades in companies like Microsoft ***and*** Apple, with 10,000s of shares in each as well as other companies, I know how the markets work you condescending p****.

This is why I don't like Apple fanboys. Their fans, the company - OK, the fanboys...

You clearly don't know how the markets work seeing as you are baffled about how Apple's stock went down and Microsoft's didn't. It's the very most basics of investing that you don't even understand. Don't flip out and go on a rage because I'm trying to explain it to you. Go outside and get some fresh air...

And what do Apple fanboys have anything to do with this? Seriously, you have some severe insecurity problems...
Nice job making yourself look like a child...

neufuse said,
hey, at least MS closed today up $0.02, and not down $63.51 like another unnamed company
Percentages... lost on everyone.

Thats because MS actually made record revenue, which this article somehow misses.

And it's normal for MS to actually make slightly less in profit right after the release of a new OS, because of the costs involved for actually making it and advertising it. This is why analysts were expecting lower profit as it's normal. So this is actually good news for Win 8.

Again the article misses this out though. But this is Neowin...

MrHumpty said,
Percentages... lost on everyone.

For people trading stocks...... all that matters is what direction the stock goes...

1Pixel said,
Thats because MS actually made record revenue, which this article somehow misses.

And it's normal for MS to actually make slightly less in profit right after the release of a new OS, because of the costs involved for actually making it and advertising it. This is why analysts were expecting lower profit as it's normal. So this is actually good news for Win 8.

Again the article misses this out though. But this is Neowin...

I f you check previous financial records following the release of a new OS.... It is the opposite.
Well this is Neowin, MS shareholders look at these reports as investors instead....

neufuse said,
For people trading stocks...... all that matters is what direction the stock goes...
Again, percentages, lost on everyone. Also, you sure do know a lot about trading stocks. Your portfolio must be insanely profitable.

Fritzly said,
If you check previous financial records following the release of a new OS.... It is the opposite.
Obviously, Comparing the Vista -> Win7 transition is the same as Comparing Win7 -> Win8 on launch. And obviously, users are replacing computers at the same pace in Oct-Dec2012 as they were in Oct-Dec2009.

But you're right. A 25% increase in Windows Division revenue in 2013-Q2 is less than a 69% increase in Windows Division revnue in 2010-Q2. I'm certain that can only mean Microsoft is faultering.

MrHumpty said,
Obviously, Comparing the Vista -> Win7 transition is the same as Comparing Win7 -> Win8 on launch. And obviously, users are replacing computers at the same pace in Oct-Dec2012 as they were in Oct-Dec2009.

But you're right. A 25% increase in Windows Division revenue in 2013-Q2 is less than a 69% increase in Windows Division revnue in 2010-Q2. I'm certain that can only mean Microsoft is faultering.

Never said that MS is faultering; please refrain to put on my mouth something I never said, old trick and does not work.

BTW your 25% increase is with the deferred profits; without it would be 11%.

Also W7 was not available for $39.99... have you factored this as well?

Fritzly said,
Never said that MS is faultering; please refrain to put on my mouth something I never said, old trick and does not work.

BTW your 25% increase is with the deferred profits; without it would be 11%.

Also W7 was not available for $39.99... have you factored this as well?

The deferred incomes significance to this discussion is minimal, its still money generated by win8. Data about win7 in that regard doesn't exist.

The Windows Division posted revenue of $5.88 billion, a 24% increase from the prior year period. Adjusting for the net deferral of revenue for the Windows Upgrade Offer and the recognition of the previously deferred revenue from Windows 8 Pre-sales, Windows Division non-GAAP revenue increased 11% for the second quarter. Microsoft has sold over 60 million Windows 8 licenses to date.

As far as the upgrade offer. You've been around long enough to know windows users usually buy new machines and aren't used to in place upgrading their systems. If only done an in place upgrade once before I did it multiple times for win8. I was amazed by the number that did. More importantly you've been around long enough to know people aren't replacing pcs at the rate they were in 2009 when win 7 was releases. And finally win7 was released after many years of FUD driven poor vista sales. The market was thirsty for a new OS. Windows 8 doesn't have that draw because windows 7 is such a old os, though inferior to 8.

In sorry you took issue with me accurately providing a one word description of your displayed attitude about Microsoft. Perhaps you don't know the meaning:

1.lose confidence: to become unsure and hesitant
2.begin to fail: to lose strength, power, or vitality
3.stumble: to move unsteadily

MrHumpty said,
The deferred incomes significance to this discussion is minimal, its still money generated by win8. Data about win7 in that regard doesn't exist.


As far as the upgrade offer. You've been around long enough to know windows users usually buy new machines and aren't used to in place upgrading their systems. If only done an in place upgrade once before I did it multiple times for win8. I was amazed by the number that did. More importantly you've been around long enough to know people aren't replacing pcs at the rate they were in 2009 when win 7 was releases. And finally win7 was released after many years of FUD driven poor vista sales. The market was thirsty for a new OS. Windows 8 doesn't have that draw because windows 7 is such a old os, though inferior to 8.

In sorry you took issue with me accurately providing a one word description of your displayed attitude about Microsoft. Perhaps you don't know the meaning:

1.lose confidence: to become unsure and hesitant
2.begin to fail: to lose strength, power, or vitality
3.stumble: to move unsteadily

If you do not like a comparison with W7.... try to compare with XP....
And please remember what was the number of PCs in use at the time XP was released.

You are free to consider the deferral impact "minimal"... "creative accounting" is nothing new.

As for the meaning of words.... be reassured, I got a "Proficiency certificate" from the University of Cambridge more tham thirty years ago and, much more important, I learnt in what is 3rd Grade class in the US to always re-read twice what you write.

As for "my displayed attitude about Microsoft" you forgot to add an important disclosure: your interpretation of it.

Dot Matrix said,
Quick! Find a way to turn this into a "Windows 8 sucks" article!

Windows 8 is great, I just don't like how the start screen is laid out as a full screen interface on desktop systems. that is pretty much my only real gripe with it I wish we had a way to say show me a smaller start screen within the desktop if we wanted it... keyword there is "IF" we wanted it

Max Norris said,
Only a net profit of 6.38 billion? I blame the new start screen.

Start screen would affect revenue, not profit.

coth said,
Start screen would affect revenue, not profit.

I also blame the start screen on my skipping business school, my ability to really give a damn, and my inability to put an /s at the end of comments. Possibly also affecting my ability to tell if a response was sarcastic or not too. Probably is. I never had this problem with Windows 7.