Microsoft just presented a report which shows a 31% increase in profits which translates to US$5.2 billion or 61 cents per share. This latest figure however is still not enough to beat Apple’s earnings. This is the first time in 20 years that Microsoft losses to Apple.
One key line of Microsoft which is Windows showed it dropped 4% which can be attributed to the decline in PC sales worldwide.
Although the company has increased its earnings it is now playing catch up with Apple. PC sales which is where Microsoft gets most of its profit due to licensing of its Windows operating system is on a steady decline due to the entry of tablets. These devices run on either iOS of Apple or Android of Google with no viable Microsoft tablet in the market yet.
The recent entry of Microsoft into the smartphone market has also been slowed down and is far behind Android or iOS smartphones.
The strong products of the company seem to lie on their Office productivity suit and their Xbox line. In the long run this may not be enough to sustain them as more and more devices are coming out of the market that does not run on the Windows platform.
Posts
No comments:
Post a Comment