Microsoft Reports Rise In Profits, Windows Remain Flat

A number of predictions had been cited regarding the future of Windows 8 and Surface slates. Defying most of these, Microsoft has now registered a 19% rise in its profits during the third quarter. However, at the same time, the revenues of the Windows division have stayed flat.

Windows 8

Microsoft’s forte has long been Windows, a brand which obviously relies heavily on the PC sales. However, the PC industry has been on a decline for a while now and that has naturally affected the software titan. In view of this, it is quite surprising that Microsoft was still able to grow its profits.

As far as Microsoft’s Windows division goes, the company has stated that its profits have remained flat. This may be a result of rather slow Windows 8 sales as well as the inability of Surface slates to become mainstream. The quarterly numbers show that the Windows division rose its revenue by 23% but that includes a sizable portion of deferred payments.

The net income during the third quarter was $6.06 billion, which was a lot better than what Wall Street gurus were predicting for the company. However, it remains to be seen whether or not Microsoft will be able to register similar growth in the coming quarters.

For now, Windows 8 doesn’t seem to gain too much traction. Microsoft is still to convince the end-consumer that the new OS is an ideal software solution for touchscreen devices. This may also help the company with the struggling Surface sales.

Source: Microsoft

Courtesy: NYT

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