Gadgets Extremes

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Microsoft profit slips as Windows PCs fizzle

“Microsoft Corp’s quarterly profit fell a greater-than-expected 22 percent, as sales of computers running its Windows operating system dipped and some revenue was deferred ahead of upcoming releases of its core Windows and Office products,” Bill Rigby reports for Reuters.

“The sharp decline surprised investors, who had underestimated the effect of weak personal computer sales, sending Microsoft’s shares down 1.3 percent in after-hours trading,” Rigby reports. “‘To us it seems like the macro conditions certainly deteriorated and no tech company will be immune to it,’ said Trip Chowdhry, analyst at Global Equities Research. Earlier on Thursday Google Inc reported sharply lower profit amid slowing advertising, following downbeat reports from Intel Corp and International Business Machines Corp this week.”

MacDailyNews Take: To us, it seems like the Windows economy certainly has deteriorated and no Windows leech will be immune to it. Meanwhile, crowds and lines abound for Apple products and they’re selling every single iPhone 5 that Foxconn can manage to assemble.

Rigby reports, “Sales of PCs are expected to fall this year for the first time since 2001, according to research firm IHS, due to the weak economy and inability of the latest crop of lightweight laptops to compete with Apple Inc’s iPad.”

MacDailyNews Take: Ah, finally, the lede.

Rigby reports, “‘I don’t control the macro-environment, but there’s a huge opportunity in the explosion of devices,’ Microsoft Chief Financial Officer Peter Klein said in an interview. ‘There’s demand for compelling devices and a connected set of cloud experiences. That’s what Windows 8 is all about.’”

MacDailyNews Take: Oh, really, artiste o’ equine excrement? There certainly is demand for compelling devices, Apple iPhones, iPads, and Macs (which have outgrown sales of Windows PCs for 25 consecutive quarters now) and a connected set of cloud experiences, aka Apple’s iCloud .

Here’s what devices shackled to Windows 8/RT and Windows 8 itself are actually all about:
Infoworld reviews Windows 8 review: Yes, it’s that bad – August 15, 2012
Microsoft forced to kill off ‘Metro’ name due to trademark infringement – August 3, 2012
Gartner’s one-word review of Windows 8 on the desktop: ‘Bad’ – July 23, 2012
Ballmer: Uh, yeah, ‘Surface is just a design point,’ you know – July 10, 2012
Microsoft’s Buffoon, er… Ballmer throws down gauntlet against Apple – July 10, 2012
Microsoft reportedly dumps ‘VaporMg’ chassis, will use ‘VaporMg’ only as ‘surface treatment’ – July 9, 2012
Microsoft’s downfall: Inside the executive e-mails and cannibalistic culture that fueled Microsoft’s lost decade – July 7, 2012
HP said to dump Microsoft over Surface; to cozy up to Google Android for tablet efforts – July 2, 2012
Bad news for Microsoft’s iPad killer? – July 2, 2012
Dear Microsoft, Steve Balmer and Bill Gates: What is up with your obsession with keyboards? – June 28, 2012
Jason Schwarz: Top 10 reasons why Microsoft’s Surface is DOA – June 22, 2012
Why I love Microsoft’s vaporware Surface tablet – June 22, 2012
Microsoft’s Surface tablet said to be Wi-Fi only at launch; no 4G, no 3G, no 2G, not even 1G – June 22, 2012
Microsoft outsources Surface assembly to Pegatron; prices above $799 for Windows 8, above $599 for Windows RT expected – June 21, 2012
Acer founder: Microsoft will quit making tablets soon – June 21, 2012
Devastating video shows Microsoft’s Surface event aping Steve Jobs’ iPad unveiling (with video) – June 20, 2012
Thanks to Apple, Microsoft is doomed in the era of mobile computing – June 20, 2012
Why wouldn’t Microsoft let anyone touch its Surface tablets’ keyboard cover? – June 20, 2012
The cost of Microsoft’s Surface tablets – June 20, 2012
Apple’s revolutionary iPad vs. Microsoft’s anti-tablet ‘Surface’ – June 20, 2012
Microsoft’s Surface tablets provokes ‘sense of betrayal’ among Windows PC assemblers – June 20, 2012
Fox News: Copier Microsoft is doomed to fail with Surface tablet – June 19, 2012
Microsoft’s Surface tablet destined to be as successful as the Zune – June 19, 2012
Surface: Why Microsoft’s big mystery turns out to be a big mistake – June 19, 2012
Microsoft’s Suicide, er… ‘Surface’ – June 19, 2012
ZDNet Sr. Tech Editor Perlow: Microsoft’s Surface has catastrophe written all over it – June 19, 2012
Microsoft previews own ‘Surface’ tablet – June 18, 2012
Microsoft touts ‘major’ June 18 event said to showcase Windows RT tablets – June 15, 2012
ZDNet’s Kingsley-Hughes: Microsoft’s Windows 8 is an awful, horrible, painful design disaster – June 8, 2012
Analyst meets with big computer maker, finds ‘general lack of enthusiasm’ for Windows 8 – June 8, 2012
Dvorak: Windows 8 an unmitigated disaster; unusable and annoying; it makes your teeth itch – June 3, 2012
The Guardian: Microsoft’s Windows 8 is confusing as hell; an appalling user experience – March 5, 2012
More good news for Apple: Microsoft previews Windows 8 (with video) – June 1, 2011

Deceitful, tripping, and stupid is no way to go through a conference call, son.

Rigby reports, “Microsoft, the world’s largest software company, said fiscal first quarter profit fell to $4.47 billion, or 53 cents per share, from $5.74 billion, or 68 cents per share, in the year-ago quarter. Wall Street had expected earnings of 56 cents per share, according to Thomson Reuters I/B/E/S. Sales fell 8 percent to $16.01 billion, largely caused by the dip in demand for personal computers running Windows, as consumers held off new purchases in the tight economy or opted to buy tablet devices instead.”

MacDailyNews Take: iPad, not “tablet devices.” Versus iPad, hardly anybody is buying “tablet devices.”

Rigby reports, “The revenue decline was exaggerated by Microsoft’s deferral of some $1.36 billion in revenue, chiefly from its Windows unit, which it will regain next quarter after Windows 8 is launched.”

MacDailyNews Take: Which it hopes it will regain next quarter. See bulleted articles above.

Rigby reports, “Its perennially money-losing online services unit – containing the Bing search engine and MSN portal – narrowed its quarterly operating loss by 29 percent to $364 million, as it increased its share of the search advertising market and cut costs.”

Read more in the full article here.

MacDailyNews Take: Some people either fail to recognize or are deluding themselves about how steep a slippery slope Microsoft is perched upon today.

[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]

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This entry was posted on October 20, 2012 by in iPad bitch and tagged , , , , , , , , , , , , , , , .

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