Microsoft reports strong third-quarter revenue thanks to Windows 7 sales

Microsoft announced on Thursday, a record third-quarter revenue of $14.50 billion for the quarter ended March 31, 2010.

The financial figures are a 6% increase from the same period of the prior year. Windows revenue has increased by 28%, compared with the same quarter last year. Microsoft says this revenue growth was driven by a strong demand for Windows 7. “Windows 7 continues to be a growth engine, but we also saw strong growth in other areas like Bing search, Xbox LIVE and our emerging cloud services,” said Peter Klein, chief financial officer at Microsoft.

According to Klein more than 10% of all PCs worldwide are running Windows 7. Windows 7 was released six months ago today, on October 22, 2009. Microsoft announced that Windows 7 is the fastest selling operating system in history, selling over 90 million licenses to date. The company is projected to sell 300 million by the end of 2010.

Windows 7 has also driven an uptake of 64-bit computing. According to ChangeBASE research, conducted with senior IT decision makers, more than 65% of businesses hoped to migrated to Windows 7 within 12 months of its release. Over 50% of those migrating will be choosing the 64-bit route.

Screenshots of a Windows 7 post RTM build showed up on the web in February, fueling speculation that Microsoft is compiling early Windows 8 builds. The successor to Windows 7 is expected to be available in 2011. An ex-Microsoft worker penned July 2011 as the RTM date for Windows 8.

Microsoft is currently readying its first Service Pack for Windows 7. A beta version is expected in June with a public release in September this year.

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17 Comments

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Thealexweb - do you understand those numbers and how they are derived? You only see loss correct? I guess you didn't account the money it takes to run such a large marketing campaign in its early stages right? Development costs, etc. I guess the old saying that a company usually losses money in its first few years doesn't hold true to you.

XBOX took major losses early on. Look at where it is at today..It takes years to get production on the hardware to break even. They usually sell at losses when you account R&D, Marketing, etc.

Don't think Apple's cost of $2xx dollars for the IPAD selling at $499.00 is profit right away.

I saw a documentary on the BBC a while ago on Microsoft and Bill Gates, the argument that its similar to a startup doesn't fly because Microsoft has been in search and on-line services for long now? and they still can't even break even in that division.

Edited by thealexweb, Apr 22 2010, 10:19pm :

thealexweb said,
I saw a documentary on the BBC a while ago on Microsoft and Bill Gates, the argument that its similar to a startup doesn't fly because Microsoft has been in search and on-line services for long now? and they still can't even break even in that division.

And Google makes money from youtube? No one even brings this up but Youtube is a money pit for Google, but no one seems to notice.

thealexweb said,
I saw a documentary on the BBC a while ago on Microsoft and Bill Gates, the argument that its similar to a startup doesn't fly because Microsoft has been in search and on-line services for long now? and they still can't even break even in that division.

That's hardly the same thing. Microsoft relaunched their entire online business and so any growth needs to consider that, as that is when the investment was made (Recently)... You seem to have rather severe tunnel vision, and are unable to look past the point that Microsoft had a search engine prior. That was not taken seriously by Microsoft, nor was it considered something that would be a profit center. Hence the reinvestment and rebranding... Kind of important things you choose to overlook...

Second, a new business, is a new business. Regardless of the documentary you saw that made you an expert in business and Microsoft's structure, they do operate each business (In the case of this discussion search), independently, so it is operated in the early stages like a startup... Consider it a startup with financial backing (Such as a tech that makes an IPO early on in order to fuel growth)...

thealexweb said,

Lol, so much for when Steve Ballmer said he wanted web search ads to make up of 10% of revenue within a few years, no chance mate.

It hasn't been a few years since bing started you know.

GP007 said,

It hasn't been a few years since bing started you know.

Microsoft has been in search market for a very long time, Steve Ballmer shouldn't make crap predictions then.

thealexweb said,

Lol, so much for when Steve Ballmer said he wanted web search ads to make up of 10% of revenue within a few years, no chance mate.

You can lol, as much as you like, but at the end of the day, i bet steve and ms is making much more then any of us can ever dream of and will ever make in reality.

thealexweb said,

Microsoft has been in search market for a very long time, Steve Ballmer shouldn't make crap predictions then.

I believe he was referring to Bing a few years in... I think you're a bit early in counting them out...