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Microsoft Reports $20.9B Revenue, 525M Windows 7 Sold

By - Source: Tom's Hardware US | B 38 comments

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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  • 16 Hide
    alanim , January 21, 2012 11:39 AM
    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.
  • 11 Hide
    ojas , January 21, 2012 11:46 AM
    theuniquegamerSo where is piracy in it?

    powering 500M more PCs in India and China :p 
Other Comments
  • 1 Hide
    vaughn2k , January 21, 2012 10:08 AM
    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!
  • 2 Hide
    yorgos , January 21, 2012 10:55 AM
    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.
  • 7 Hide
    theuniquegamer , January 21, 2012 11:06 AM
    Thats a lot of money from selling above 5M windows 7. So where is piracy in it?
  • 16 Hide
    alanim , January 21, 2012 11:39 AM
    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.
  • 11 Hide
    ojas , January 21, 2012 11:46 AM
    theuniquegamerSo where is piracy in it?

    powering 500M more PCs in India and China :p 
  • 5 Hide
    molo9000 , January 21, 2012 11:48 AM
    yorgoshow 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.
  • 0 Hide
    g4114rd0 , January 21, 2012 12:20 PM
    - "Where are the prophets, where are the visionaries, where are the poets."

    After all, the Windows 8 Developer's Build a PC Tower Killer.
  • 4 Hide
    p05esto , January 21, 2012 1:47 PM
    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.
  • 1 Hide
    freggo , January 21, 2012 1:47 PM
    vaughn2kI 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 ?

  • -6 Hide
    rpgplayer , January 21, 2012 1:56 PM
    molo9000That'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/2010/03/02/what-doth-it-profit-an-iphone/
  • 1 Hide
    DRosencraft , January 21, 2012 2:19 PM
    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.
  • 2 Hide
    molo9000 , January 21, 2012 3:04 PM
    rpgplayerGoogle 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.
  • -3 Hide
    SmileyTPB1 , January 21, 2012 3:22 PM
    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.
  • -7 Hide
    SmileyTPB1 , January 21, 2012 3:46 PM
    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.
  • 1 Hide
    cheepstuff , January 21, 2012 4:45 PM
    SmileyTPB1To 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.
  • 0 Hide
    Burodsx , January 21, 2012 5:04 PM
    This is what happens when you produce a quality OS.
  • -3 Hide
    jaquith , January 21, 2012 6:02 PM
    Yeah increasing the price of Windows 7 by +$10 doesn't hurt their profits either... :fou: 
  • -4 Hide
    jaquith , January 21, 2012 6:06 PM
    BurodsxThis 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.
  • -3 Hide
    livebriand , January 21, 2012 6:09 PM
    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.
  • -3 Hide
    Gulli , January 21, 2012 7:05 PM
    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...
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