Microsoft's profits drop for first time in 23 years

It goes to show that no company is truly recession proof. Microsoft is reporting that sales have fallen for the first time in 23 years. According to numbers released by Microsoft sales have fallen 6% year over year.

What can be cited for the drop in MS sales? Apparently netbooks are one of the major contributing factors. Consumers are buying cheaper products during these hard times and there are many netbooks that sell with a Linux flavor installed as opposed to Windows variants.

Blame can also be attributed to Vista's poor demeanor in the market place as consumers continue to look negatively at the operating system. Consumers are also probably holding out too for the much anticipated Windows 7 that is receiving great praise for its improvements over Vista.

At the end of the day Microsoft will still continue on, while not the best quarter for the company, they will rebound and remain a strong competitor in the market place for decades to come.

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I dunno, is it? People can't go without food but they can live with holding on to their older PC hardware for another year if they have to.

Actually they are, or at least tried to make it look like they were when they took the double cheese burger off the dollar menu replacing it with virtually the same thing but without 1 slice of cheese called the mcdouble and now having the real double cheese burger cost like 20 cents more.

DigitalDude said,
Actually they are, or at least tried to make it look like they were when they took the double cheese burger off the dollar menu replacing it with virtually the same thing but without 1 slice of cheese called the mcdouble and now having the real double cheese burger cost like 20 cents more.

wow phd on burgers.

gianpan said,
wow phd on burgers.

Heh not really just happend to know this example of Mcdonalds being affected just like Achal wanted to know

Avee said,
Windows 7 Build 7100 has been released on some Microsoft Private Site (Lol) and I got it. It rocks11


Uh good for you? whats that have to do with money?

Ender2070 said,
WOOT!!! I was waiting for this day for a LONG time!

Finally people are getting it - Microsoft is crap.


People are buying less of EVERYTHING... has NOTHING to do with MS... even TV makers, PC (I include Apple in this because its a personal computer) makers and other tech companies are dropping overall

Ender2070 said,
WOOT!!! I was waiting for this day for a LONG time!

Finally people are getting it - Microsoft is crap.

Wow, all you can do is bash MS and then provide no valid information? Its not that MS is crap...EVERYONE is having issues with the economy. Get a clue....

Scutley said,
please tell me why is their stock up nearly 10% right now.


Because the decline is LESS then what was expected, which in stock world means thats a good thing

The recession will take its toll on any company even Microsoft, still, nearly $3 billion in profit for the quarter is not bad at all.

At the end of the day Microsoft will still continue on, while not the best quarter for the company, they will rebound and remain a strong competitor in the market place for decades to come.

Hang on a second... That's not journalism in any sense.

You don't know that MS will rebound and remain a strong competitor for years to come. Yes, I agree that it's likely, but you have written it as though it's undisputable fact, based on some divine journalistic source laid out before you. It was a great article until you added that - then it just smacked of wistful childishness.

SniperX said,
Hang on a second... That's not journalism in any sense.

You don't know that MS will rebound and remain a strong competitor for years to come. Yes, I agree that it's likely, but you have written it as though it's undisputable fact, based on some divine journalistic source laid out before you. It was a great article until you added that - then it just smacked of wistful childishness.

True, it's more prophetic than journalistic.

"Consumers are buying cheaper products during these hard times and there are many netbooks that sell with a Linux flavor installed as opposed to Windows variants."

I haven't yet met one 'average Joe' user who would save on the OS (Windows). CPU - yes, RAM - yes, HDD - yes. But switch on his laptop and be greeted by the evil Penguin with no idea how to even login? Never.

"Blame can also be attributed to Vista's poor demeanor in the market place as consumers continue to look negatively at the operating system." Based on my humble experience, there's no real negativism amongst the 'average Joes' I know. The top reason they aren't switching to Vista is that they run XP and are perfectly fine with it. Those who are purchasing a new computer have heard or have been told they need to invest more in hardware in order to get good performance, and since they have years of experience with XP they just say 'no, thanks'. All people I've known to be prejudiced against Vista are now running Vista and are really happy with it. There's also a real minority which have been scared off, based only the usability changes which made them think they would need to learn a new OS. My $0.02.

Ultimately, Microsoft's products guide the market forward to a great extent -- both software and hardware, so if they do poorly it's bad for all of us.

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