Big profits for Microsoft not down to Windows, as OS X Lion roars away

By Posted 22 Jul 2011, 13:08

A couple of days ago we gave you the news of Apple’s sales and profit figures, which were pretty impressive. Now today we have news of big profits for Microsoft which is not down to sales of Windows, as Apple’s OS X Lion roars away with massive first day sales.

According to The New York Times, Microsoft is seeing sales of its Windows operating system slipping for the second quarter running. This is down to the fact consumers are turning their backs on traditional PCs in favor of tablets such as the iPad 2.

The financial report showed that demand for computers were struggling, but demand for the Xbox 360 and business products was strong. Net income for the company’s fourth quarter that ended in June climbed by thirty percent to $5.87 billion, or 69 cents per share. This compares to a year ago which provided $4.52 billion or 51 cents per share. According to Microsoft revenue rose by 8.5 percent from $16 billion to $17.37 billion.

Sales from the part of the company that sells the Windows operating system dropped one percent, to $4.74 billion. Microsoft executives expect sales of Windows to weaken further as PC sales continue to slow. The switch in demand to tablets will worry Microsoft as they run mainly on Apple’s operating system, and the Android platform.

Some good news for Microsoft was the continued success of the Xbox 360 and Kinect motion controller. Sales in this part of the company grew by thirty percent to $1.49 billion, with shipments of the console rising thirteen percent to 1.7 million. They also saw a rise in revenue from its online services such as Bing and MSN of seventeen percent.

Windows woes compare to the news of the recent Apple Mac OS X Lion release a couple of days ago. According to AppleInsider, Apple have announced downloads of its update to its operating system was downloaded over one million times in its first day of being available. This means the latest upgrade to Mac OS X got off to the fastest start to any other the company has released.

Users can download the update for $29.99 of purchase it from next month via USB thumb drive for $69. As the tablet market is growing quickly, Microsoft may have to start thinking of developing software that manufacturers will want to ship with their devices.

What do you think of the news about Windows?

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