Windows income -2%

Friday, July 22nd 2011. | Software News

Microsoft announced record revenue of $17.37 billion but instead of celebrating analysts said the company should be concerned about declining revenue of its Windows division, which fell 2 % in the fiscal 2011. For the full fiscal year that ended on June 30, the company had $69.94 billion in revenue, which is up 12 % from the previous year.  Analysts are worried about Microsoft’s long-term growth. Its Windows division is down 1 %   in the fourth quarter and 2 percent for the fiscal year. However, the company said that Windows growth was in line with the overall PC market growth of 2 to 4 percent.

Despite having a 16.25 % increase in sales, Microsoft’s online services posted a loss of $728 million. This is bigger than the loss of $688 million a year ago. The same division has lost $6.5 billion in the past three years. Shares of Microsoft have remained flat in after-hours trading. Since the beginning of 2011, the value of its stock is down 2.71 percent. The company is gambling on the next version of Windows OS to be relevant in this time when tablets are eating into PC sales.

Microsoft’s revenue result is the opposite of Apple’s outstanding performance. Apple posted 28.57 billion in revenue and 125 percent increase in profits.

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