Microsoft profit falls, sees business tough all year
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Microsoft profit falls, sees business tough all year

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Microsoft profit falls, sees business tough all year
Bangalore: The slump in global PC sales and broad economic weakness is still dragging on Microsoft's revenue and profits. The company reported a 29 percent drop in Q4 profit. Microsoft did not give a specific earnings or sales forecast for the current quarter, which runs through the end of September.

Christopher Liddell, CFO, Microsoft says, "We expect business to be tough for the remainder of 2009. The economy continues to be challenging and we need to lift our game." Search revenue was flat compared to last year, despite the launch of during the quarter. However, the company has seen a double digit increase in unique users.

On the PC side, Liddell said, "There is an opportunity for improvement next year, both from possible higher PC sales in general and perhaps from business PC growth starting to outpace consumer PC growth." This year, consumer PC spending has been stronger than business, resulting in lower average selling prices for Windows, a trend exacerbated by the growth of Netbooks, for which Microsoft typically gets even less revenue. "We saw unit increases in both Windows and Windows server for the first time in a year, though revenue has continued to slide, with Netbooks making up 11 percent of PC units, said Liddell."

Most of the analysts feel that Microsoft's profits were negatively impacted by charges related to its forthcoming operating system (OS) rollout and other legal costs. "We have been fighting the free OS for some time," Liddell said.

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Reader's comments(5)
1: Bill Gates is an excellent salesman and a visionary in understanding the future and emerging customers of the next decades. As a businessman he is tough and uncompromising -and rightly so . But there is another side to his personality --which believes in giving something back to the society by way of facilitating healthcare and support to the needy people of the world. All human beings , including the rich and famous have two sides --a positive and a negative side . One should look at the positive side of such people and understand them rather than sit in judgement.
Posted by:Raj Vaidya - 24 Jul, 2009
2: Bill gates should come back and work to increase rapid growth of microsoft,...but his good nature and good kindness keeping far from business and close to donations..
Posted by:jitendranath.p - 24 Jul, 2009
3: After so many years, Microsoft has reported loss.
Posted by:fromina - 23 Jul, 2009
Global meltdown can hit the Giants too.
Benjamin Replied to: fromina - 24 Jul, 2009
its bcoz bill gates resigned and aiming at social work..
ha hahahaha..
kool Replied to: fromina - 24 Jul, 2009