Quarterly Report: Microsoft Sees Revenues Fall As Anticipation For Windows 8 Rises

Microsoft reported a 22 percent decline in fiscal Q1 2012, October 1-December 31, 2012, due to less purchases as part of Windows 8 anticipation.

It’s good news for the operating systems as anticipation grows for the most controversial version of Windows since Vista in recent times.

The PC market is shrinking, though that’s because Windows 8’s release in eight days is stalling purchases

Microsoft’s Chief Financial Officer Peter Klein admitted the PC market was challenging during the first fiscal quarter. Klein also revealed original equipment manufacturers are reducing Windows 7 inventory to install Windows 8.

Profits were $4.47 billion, with a revenue of $16 billion. however Microsoft postponed revenue of Office software offers and sales due to pre-sales and upgrades to Windows 8. Manufacturers offering devices with Windows 8 will surely be plentiful when the operating system launches in eight days.

Decline From Last Year, Though Windows 8 Could Change Fortunes

Comparatively, Microsoft earned $5.74 billion of $17.47 billion in revenue during the same period in 2011. Research firms IDC and Gartner reported PC shipments declined by eight and nine percent. Sales grew in September, Microsoft’s Director of Investor Relations Lisa Nelson added. She described Microsoft on the verge of the biggest product launch in history.

Windows 8’s success is of course vital, though Windows Phone could yet have a say. If the operating system grass developers and consumers, and gets the users onto Windows 8, Microsoft could have an exciting combination on its hands.

Of course Windows 8 launches on October 26. Microsoft also opened pre-orders for Surface, the company’s tablet-hybrid device. The base model, costing $499 and without the Touch Cover, is one a three-week waiting lists for current orders placed. It will be interesting to see whether Microsoft shows a sample of products during the celebration event for Windows 8 on October 25.

Published: Thursday, October 18th, 2012 Last Modified: October 21, 2013

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