25 January 2014

Microsoft Consumer Sales Tank and Nokia Windows Phone Sales Decline

Microsoft today: enterprise sales still strong but consumer sales in decline. Will enterprise follow?

Microsoft Windows Sales - Business Insider: "Basically, consumer PC sales are tanking, but sales to enterprises are strong.  Suh said Windows revenue for consumers was down 20%. Windows revenue for enterprises was up 12%. He said the consumer sales drop was affected by China, where there is an inventory build up. But, even if you don't include China, the consumer drop is still 14%"...".... didn't provide any guidance on whether corporations are buying Windows 8, or Windows 7 licenses. (If we had to guess, we'd guess Windows 7 is more popular since he didn't say anything either way. If Windows 8 was hot, Microsoft would want to brag about it."

Nokia Earnings - Business Insider: Nokia says it sold 8.2 million Lumia phones last quarter. Lumia phones are the devices that run Microsoft's Windows Phone 8 operating system. Lumia sales had actually been growing quarter over quarter in 2013, but saw a decline in the final quarter. It sold 8.8 million Lumias in Q3 2013.That's a troubling stat since sales declined during the holiday season.

Microsoft results show tough realities of company's expansion into hardware - GeekWire: "Microsoft this afternoon posted record revenue of $25.5 billion for the December quarter, an increase of 14 percent. And yet the company’s profits were up just 2 percent, to $6.56 billion. So what’s going on? A quick glance at Microsoft’s Devices & Consumer segment helps to explain what’s happening — and illustrates how the company is being reshaped by its expansion into hardware. Revenue in the Devices & Consumer segment was up 13 percent, to $11.9 billion, driven by strong sales of the Xbox One and Surface tablets. However, the segment’s gross profit declined to $5.8 billion — a decrease of 14 percent from the same quarter a year ago...."

Microsoft Form 10-Q"Launched in October 2012, Windows 8 was designed to unite the light, thin, and convenient aspects of a tablet with the power of a PC." Problem: Windows 8 is a debacle "Threshold" to be Called Windows 9, Ship in April 2015 | Windows 8 content from Paul Thurrott's SuperSite for Windows: "there's no way to sugarcoat this. Windows 8 has set back Microsoft, and Windows, by years, and possibly for good."

Microsoft Earnings Illustrate Move to Devices and Services From Software
New York Times
Apple's success in new product categories like tablets and mobile phones — and Microsoft's weakness in those areas — is a big reason Microsoft has taken the once unthinkable step of making its own computers and mobile phones, although both crimp...


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