Microsoft Reports 2nd Quarter Profits

January 28th, 2011 at 9:48 am

Microsoft has recently announced its earnings report for the second quarter. The software giant posted a total of US$6.63 billion profit on a total revenue of US$19.95 billion. Compared to the same quarter last year, it is somehow along the same numbers, give and take a few thousands of dollars. Despite not posting higher profits, it did beat the estimates analysts predicted Microsoft would make for this quarter.

The recent second quarter profits can be largely credited for the new line of products that Microsoft has recently been coming up with. Realizing that they might need to come up with some new product lines to stay on top, Microsoft did just that and it may have helped them maintain their profits. For the most part, sales from the Xbox 360 as well as the new Kinect device for the gaming console boosted up revenue coming from the company’s Entertainment and Devices Division by 55 percent with US$3.6 billion. But sales from its Windows business suffered a decrease by around 30 percent as it was only able to come up with US$5.05 billion for the quarter.

The numbers may be showing some changes happening in the business of Microsoft. Whereas windows was once the company’s bread and butter, the consumer device business may slowly be up the that level in terms of sales. The revenue difference between the two businesses is slowly getting lower. The revenue gap this year stands at only around US$1.3 billion when it was around US$4.8 billion during the same period last year. It may just give the company reason to reassess their business focus for the coming year.

The recent launch of the much touted Windows phones has not yet made any impact so far. Despite its costly market push, the Windows phones do not seem to garner the same interest and attention from consumers the way iPhone did. That future may be something that Microsoft might also need to look into if it still is trying to make its mark in such a competitive market. If it does improve in the coming months, it may just be another huge push upwards for the erstwhile software giant.


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