Microsoft Reports $20.9B Revenue, 525M Windows 7 Sold
Things are still running well at Microsoft.
Microsoft doing all right for itself as it announced a quarterly revenue of $20.89 billion for the quarter ended Dec. 31, 2011, a 5 percent increase from the prior year period.
“We delivered solid financial results, even as we prepare for a launch year that will accelerate many of our key products and services,” said Steve Ballmer, chief executive officer at Microsoft. “Coming out of the Consumer Electronics Show, we’re seeing very positive reviews for our new phones and PCs, and a strong response to our new Metro style design that will unify consumer experiences across our phones, PCs, tablets, and television in 2012.”
The Microsoft Business Division reported $6.28 billion in second quarter revenue, a 3 percent increase from the prior year period. Nearly 200 million licenses of Office 2010 have been sold in the 18 months since launch.
The Server & Tools business posted $4.77 billion in second quarter revenue, an 11 percent increase from the prior year period, reflecting double-digit revenue growth in Windows Server and SQL Server premium editions and more than 20 percent growth in System Center revenue.
The Windows and Windows Live Division posted revenue of $4.74 billion, a 6 percent decline from the prior period. Microsoft has sold over 525 million Windows 7 licenses since launch.
The Online Services Division reported revenue of $784 million, a 10 percent increase from the prior year period. Bing organic US market share grew to 15.1 percent while Bing-powered US market share, including Yahoo! properties, was approximately 27 percent.
The Entertainment & Devices Division posted revenue of $4.24 billion, an increase of 15 percent from the prior period. The Xbox 360 installed base now totals approximately 66 million consoles and 18 million Kinect sensors. Xbox LIVE now has 40 million members worldwide, an increase of 33 percent from the prior year period.
“In addition to the continued strength of our commercial business, this holiday season was the strongest in Microsoft history, thanks to good sales execution and compelling products like Xbox 360 and Kinect,” said Kevin Turner, chief operating officer at Microsoft. “We are seeing a lot of excitement for new devices, from Windows 7 Ultrabooks to new Windows Phones, as well as growing anticipation for Windows 8.”
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I just bought an XBOX 360 with Kinect, my kids loved it, I too and my wife is enjoying it... loved the games that much that I replaced my 32in with 42in HD!
how they sell it when everything out there, laptops and oem PCs, are either Win or Mac?
that's forcing people to buy your product.
Thats a lot of money from selling above 5M windows 7. So where is piracy in it?
There's only one thing that can be said.
Developers, Developers, Developers, Developers, Developers, Developers, Developers, Developers, Developers, Developers, Developers, Developers, Developers, Developers, Developers.
I'll give Steve Ballmer one thing, he knows the key to success(which lots of companies are failing to do atm), adaption, and innovation.
So where is piracy in it?
powering 500M more PCs in India and China
how they sell it when everything out there, laptops and oem PCs, are either Win or Mac?that's forcing people to buy your product.
That's what's called a natural monopoly in economics.
That also explains their 33% net profit margin. Even Apple or Google don't have profit margins that high.
- "Where are the prophets, where are the visionaries, where are the poets."
After all, the Windows 8 Developer's Build a PC Tower Killer.
Congrats Microsoft, you are the rock of the computer industry. For as much bad press and stupid M$/Microshaft comments you get from clueless kids in their parents basement you kick-ass year after year and provide the foundation. Good luck in 2012 and with Win8. I think bringing together Win8 on all devices will be a game changer for consumers and businesses, no other company is in the position to do this like MS can.
I just bought an XBOX 360 with Kinect, my kids loved it, I too and my wife is enjoying it... loved the games that much that I replaced my 32in with 42in HD!
... and your point is ?
That's what's called a natural monopoly in economics.That also explains their 33% net profit margin. Even Apple or Google don't have profit margins that high.
Google no, Apple yes.
http://tech.fortune.cnn.com/2010/0 [...] an-iphone/
Congratulations to Microsoft. I don't like some of the things they do, or are planning to do, but they are a very solid company that tends to get a bad rep. People like to beat up on them for their mistakes and don't give them much credit for their successes. But they had a good year last year, so I hope we can all at least look forward to their continued success in this and the many years ahead. Otherwise us computer users and enthusiasts will find ourselves in a very unsavory PC market.
Google no, Apple yes.http://tech.fortune.cnn.com/2010/0 [...] an-iphone/
Wrong.
Apple net profit margin 2011 = profit/revenue = 25.922 billion/108.249 billion = 24%
Google net profit margin 2011 = profit/revenue = 8.505 billion/29.321 billion = 29%
Microsoft net profit margin 2011 = profit/revenue = 23.15 billion/69.94 billion = 33%
The margin shown in your link is the gross profit margin, which is something entirely different than the net profit margin.
It measures the revenue of a particular product against the costs that can be directly attributed to that product. Those include production, materials, shipping, etc., but they don't include fixed costs like Research&Development, running the supporting infrastructure (iTunes/Appstore/whatever) and all the other costs you have when running a company.
Yes, the complaint of piracy costing the companies billions seems kind of weak when they are already making billions more than anyone else on the planet.
To all of you MS lovers in here who are complaining that MS gets a bad rap when they really are a good company, (they must be look at all of those billions) apparently don't know how bad of a ride it has been with MS for the last almost 3 decades.
Apparently none of you remember how bad most of MS operating systems have been over the years.
Windows 3.x: Completely counter intuitive and almost unusable for anyone without training in computers.
Windows 95: Just plain awful, MS grossly understated what the minimum system requirements were for this and as a result ran like complete crap on all but the newest machines with at least 16mb of ram. Plus 4 major revisions during its lifespan just to work out "most" of the bugs.
Windows 98: Marginally better but still pretty bad. Random system freezes and/or BSOD anyone.
Windows ME: A really bad revision of 98, most people had huge driver and software issues and even MS abandoned it after only a couple of years.
Windows XP: Finally an operating system that worked pretty good, but it took until SP2 almost 2 years after the first release to make it that way.
Windows Vista: This operating system was as bad as ME was or worse and even MS has admitted that this was probably one of their worst products ever.
Yes there are a couple not on that list but you should get the idea.
The whole time MS has been stabbing us in the wallet until it bled to pay for all of this crap.
I think they have more than earned their bad reputation and deserve every last comment about how much they suck.
To all of you MS lovers in here who are complaining that MS gets a bad rap when they really are a good company, (they must be look at all of those billions) apparently don't know how bad of a ride it has been with MS for the last almost 3 decades. Apparently none of you remember how bad most of MS operating systems have been over the years. Windows 3.x: Completely counter intuitive and almost unusable for anyone without training in computers.Windows 95: Just plain awful, MS grossly understated what the minimum system requirements were for this and as a result ran like complete crap on all but the newest machines with at least 16mb of ram. Plus 4 major revisions during its lifespan just to work out "most" of the bugs.Windows 98: Marginally better but still pretty bad. Random system freezes and/or BSOD anyone.Windows ME: A really bad revision of 98, most people had huge driver and software issues and even MS abandoned it after only a couple of years.Windows XP: Finally an operating system that worked pretty good, but it took until SP2 almost 2 years after the first release to make it that way.Windows Vista: This operating system was as bad as ME was or worse and even MS has admitted that this was probably one of their worst products ever.Yes there are a couple not on that list but you should get the idea.The whole time MS has been stabbing us in the wallet until it bled to pay for all of this crap.I think they have more than earned their bad reputation and deserve every last comment about how much they suck.
Ok, if you are so great and they are so incompetent, why don't build a good operating system and make a fortune on it? Lets see you write millions of lines of code without a single bug.
Microsoft is a world class company and they didn't get there by accident; people are readily willing to adopt their software. They have no monopoly, they are merely dominant in the market because if they were to actually to make an operating system that did not function, nobody would buy it and they would lose sales to competition.
Microsoft has to be offering something that people want, otherwise there would be no reason to use it and everybody would stick to free Linux platforms. It is obnoxious to see people making stupid comments about how Microsoft is a horrible company that sucks our wallets dry when we are the ones that open the wallets and freely give them our own money. Why? because we want their software, instead of an alternative that we think is worse.
This is what happens when you produce a quality OS.
Yeah increasing the price of Windows 7 by +$10 doesn't hurt their profits either...
This is what happens when you produce a quality OS.
Still want a refund from MS for Windoze ME and Windoze Vista, both were horrible OSes.
no I wasn't the one who gave you a thumbs down.
Now if they would avoid giving Windows 8 that TERRIBLE Metro UI (at least for desktops and laptops), these profits will likely continue. I'll be sticking with Windows 7 for quite a while at this rate.
ZOMG! Those damn dirty pirates only allowed Microsoft to collect $20.9 billion in revenue! That's barely enough to buy 2000 learjets these days...
To all of you MS lovers in here who are complaining that MS gets a bad rap when they really are a good company, (they must be look at all of those billions) apparently don't know how bad of a ride it has been with MS for the last almost 3 decades. Apparently none of you remember how bad most of MS operating systems have been over the years. Windows 3.x: Completely counter intuitive and almost unusable for anyone without training in computers.Windows 95: Just plain awful, MS grossly understated what the minimum system requirements were for this and as a result ran like complete crap on all but the newest machines with at least 16mb of ram. Plus 4 major revisions during its lifespan just to work out "most" of the bugs.Windows 98: Marginally better but still pretty bad. Random system freezes and/or BSOD anyone.Windows ME: A really bad revision of 98, most people had huge driver and software issues and even MS abandoned it after only a couple of years.Windows XP: Finally an operating system that worked pretty good, but it took until SP2 almost 2 years after the first release to make it that way.Windows Vista: This operating system was as bad as ME was or worse and even MS has admitted that this was probably one of their worst products ever.Yes there are a couple not on that list but you should get the idea.The whole time MS has been stabbing us in the wallet until it bled to pay for all of this crap.I think they have more than earned their bad reputation and deserve every last comment about how much they suck.
Nobody here is responsible for your lack of computer prowess. It's not Microsoft's fault you suck at using their systems. Take responsibility for your own ignorance, son.
That's what's called a natural monopoly in economics.That also explains their 33% net profit margin. Even Apple or Google don't have profit margins that high.
Cause Apple sells hardware along with software (if you even want to bother deeming it worthy of software) and Google provides a lot of free services designed to create reliance on their company. Microsoft isn't always the greastest innovators but the company has always been run by great business men who may get bashed for calculated risks that fail but they tend to make the right gambles over time, play their hands well and don't get enough credit for those traits because the general population tends to not idolize 'business' vs 'vision' but the world desperately needs good business men as well.
To all of you MS lovers in here who are complaining that MS gets a bad rap when they really are a good company, (they must be look at all of those billions) apparently don't know how bad of a ride it has been with MS for the last almost 3 decades. Apparently none of you remember how bad most of MS operating systems have been over the years. Windows 3.x: Completely counter intuitive and almost unusable for anyone without training in computers.Windows 95: Just plain awful, MS grossly understated what the minimum system requirements were for this and as a result ran like complete crap on all but the newest machines with at least 16mb of ram. Plus 4 major revisions during its lifespan just to work out "most" of the bugs.Windows 98: Marginally better but still pretty bad. Random system freezes and/or BSOD anyone.Windows ME: A really bad revision of 98, most people had huge driver and software issues and even MS abandoned it after only a couple of years.Windows XP: Finally an operating system that worked pretty good, but it took until SP2 almost 2 years after the first release to make it that way.Windows Vista: This operating system was as bad as ME was or worse and even MS has admitted that this was probably one of their worst products ever.Yes there are a couple not on that list but you should get the idea.The whole time MS has been stabbing us in the wallet until it bled to pay for all of this crap.I think they have more than earned their bad reputation and deserve every last comment about how much they suck.
Do you remember their competition in those years? that's the computer ice age. Microsoft was shooting for the stars back then and it took a lot of trial and error to get it right. While everyone else was trying to build OS that could do a few tasks well, all other options were extremely limited. Microsoft has ALWAYS tried to give us a versatile, all encompassing OS that allows open source development so that the machines could be unlocked to do tasks that no one dreamed of at MS or even needed to. If you owned a mac back then it was for typing only. If you played around with linux you were probably just a savvy nerd who enjoyed (or needed) writing one program at a time to do single tasks and that's what the machine was devoted to. The difficulty of creating an environment as powerful as Win 7 is monumental and that's why it has taken so long to get here. Because it should be that difficult and take that long to create something that refined. It takes that long to design a plane, but this is a commercial market, no government money keeping something afloat for 20+ years of development.
Yeah increasing the price of Windows 7 by +$10 doesn't hurt their profits either...
They also doubled the student cost of Windows 7 from $30 to $65 recently. Great job Microsoft.
Wow, there are a lot myopic MS suck ups in here. I had no idea that so many people has such a skewed view of the past.
MS got where it was, not because they built a superior operating system, but because they had almost no competition. If Steve Jobs had not been such a controlling greedy psychopath the whole world would run on Apple right now and not Microsoft because back in the days that MS climbed to the top the Macintosh was by far the better system.
BTW, I don't understand how knowing how to use an operating system better prevents random system freezes that loose all your work even though you just saved it.
All of this trash talk about Windows Vista. You must follow like sheep because I was using it since LAUNCH and I rarely encountered a problem, if any. The one's that were having a difficult time were consumers who wanted low powered tech but higher end options on their OS. Now it wasn't the most efficient, I will say, but at the same time it laid sooo much groundwork and the base for Windows 7 that everyonneeee praises (strange, huh?).
... and your point is ?
Apple blows. End Session.
WOW, unbelievable, how many retarded comments are flowing from MS indoctrinated fan boys on here.. You have to be a total idiot if you think this company is innovative and posses a quality product.
Microsoft doesn't sell, they steal.. People don't buy Windows, MS shoves their operating system down your throat whether you want it or not, it's pre-installed on all new PCs in the electronic stores.
I used Microshit products since DOS 6.22 and Win 3.1, and was a total MS fan boy during Win NT4 (use to run Softimage 3.7 Extreme on NT4), but eventually the more I worked on MS products, I realized that they're total piece of merde. I got fed up with system crashes, security leaks, spyware, viruses, corrupted registry, DRM and Microshit's disgusting business practices. I switched to linux and I couldn't be happier.
Alright, how does that reflect on the Microsoft of Today?
The same old crap plagued by performance and security issues as usual!!! And it is grossly overpriced. They could sell their products at 1/4 of the price and still make tons of money.
Windows 7 is nothing but a service pack to Windows 2000. There isn't really anything useful in it that you could not get from third party applications and most of the time for free.
I've been sitting in front of a PC for nearly 30 years now.
The same old crap plagued by performance and security issues as usual!!! And it is grossly overpriced. They could sell their products at 1/4 of the price and still make tons of money.Windows 7 is nothing but a service pack to Windows 2000. There isn't really anything useful in it that you could not get from third party applications and most of the time for free.I've been sitting in front of a PC for nearly 30 years now.
If you're comparing modern day Windows security to that of 2000 you must not remember it as well as you think you do (or don't have a personal Windows 7 computer).
And one thing that you should remember is the BSOD's. Those, from what I understand, were often caused by drivers that had access to the kernel, something Microsoft did away with in Vista. I have never had a BSOD I didn't cause myself due to overclocking and I've had Windows 7 installed since it was released.
Overpriced it may be (like pretty much any major software suite) but that is not a good reason to hate a company. It is a good contributing factor (like my dislike for Apple) but it is not good enough.
In terms of performance, I admit I'm not too knowledgeable on this subject due to the fact that I have a medium-high end computer. I will recognize that Windows 7 does require a significant amount of RAM to function optimally.
And, to your last sentence, I will reiterate that any PC at a major business DOES NOT COUNT when analyzing microsoft's products. Ignorant or incompetent IT departments, egregious use of legacy software, complicated networking setups, overbearing corporate security software, and a lack of personal control over settings that would make the user experience better make business level OS use a very poor indicator for the platform's performance.
Plus the fact that many companies don't upgrade their computers when they upgrade their OS's and thus put Windows 7 on a Windows XP rig that barely met those system requirements.
[citation][nom]guardianangel42[/nom And one thing that you should remember is the BSOD's. Those, from what I understand, were often caused by drivers that had access to the kernel, something Microsoft did away with in Vista. I have never had a BSOD I didn't cause myself due to overclocking and I've had Windows 7 installed since it was released.[/citation]
Really? I have had major BSOD issues on a new high end computer that I build myself with quality components before I ever installed ANY drivers.
Yes Windows 7 is great, I'm using it right now. But people in here don't even remember Vista which came out in 2007, not exactly ancient history. By Microsoft's own admission that was possibly their worst operating system and their biggest mistake EVER, and there have been so big ones over the years. (They claimed Win 95 would run on a 386 with 4 mb of RAM!) It's the reason Win 7 is so good now. In fact Win 7 is the ONLY Microsoft Windows based operating system that hasn't had MAJOR problems when released. All others had to wait for at least the first service pack to get them to where they were only mildly frustrating to use.