Microsoft’s profit falls before Windows 8 launch
Software giant Microsoft Corporation witnessed a worse than anticipated 22% dip in profits before the launch of its much-awaited operating system Windows 8. The lackluster financial results indicate that how badly the company needs Windows 8 to succeed.
Microsoft’s revenue for the quarter landed at US$ 16.01 billion, an 8% drop from the same time period in 2011. Net income, meanwhile, was at US$ 4.47 billion, down 22% from last fiscal. However, Microsoft is quite optimistic that Windows 8 will turn things around. In a statement, Microsoft chief Steve Ballmer said, “The launch of Windows 8 is the beginning of a new era at Microsoft. Investments we’ve made over a number of years are now coming together to create a future of exceptional devices and services, with tremendous opportunity for our customers, developers, and partners.”
The Windows division of Microsoft posted revenue of US$ 3.24 billion, down 33% from last year. Adjusting for the Windows Upgrade offer and pre-sales of Windows 8 to OEMs, Microsoft stated that the decline was actually 9%.
The upcoming operating system Windows 8 is the most significant revamp for Microsoft since Windows 95. Windows 8 sports a completely new look that’s intended to be consistent across PCs, tablets and smartphones. It’s designed from the scratch for touch-sensitive screens. For the first time Microsoft has designed its own tablet called Surface, which will go on sale for a starting price of US$ 500 on October 26.