Microsoft/Windows

Windows 7, Office Drive Record Microsoft Revenue

By Michael Smith

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With Apple blowing past Wall Street estimates this week by reporting $15.7 billion in revenue for its third business quarter, the pressure was on Microsoft  — and the software  giant delivered. Microsoft said Thursday it earned a record $16.04 billion in revenue during the second quarter, driven by the launch of Office 2010 and strong Windows 7 sales.With 175 million licenses sold to date, Windows 7 is the fastest-selling operating system ever and now runs on more than 15 percent of all PCs worldwide, Microsoft CFO Peter Klein told financial analysts on a conference call.”This quarter’s record revenue reflects the breadth of our offerings and our continued product momentum,” Klein said. In addition to Windows 7, Windows Server and the Xbox 360 video-game console also exhibited strong performance  in the quarter, even as the software giant’s Bing search engine “achieved its 13th consecutive month of share gain,” he added.

PC  Growth Continues

According to a preliminary estimate from Gartner , worldwide PC shipments rose 20.7 percent year over year to 82.9 million in the second quarter — slightly above the research firm’s earlier outlook of 19.3 percent growth. However, Microsoft told analysts it estimates even higher PC market growth of 22 to 24 percent in the quarter, with the consumer and business segments growing at roughly the same rate.”From a geographic perspective, emerging markets remain a significant driver of the PC market with almost twice the growth of mature markets,” said Bill Koefoed, general manager of investor relations at Microsoft.Gartner’s PC growth estimate may go up another one to two percentage points once all the numbers for the second quarter are in, noted Mikako Kitagawa, a principal analyst at the research firm. “So our final figure could be on the low side of their projection,” she said. “But consumer growth will be stronger than professional in our projection.”Windows revenue grew more than $1 billion, or 32 percent, in the second quarter, Koefoed noted. “Total OEM license growth was 26 percent and outpaced the PC market for the third quarter in a row,” Koefoed told financial analysts. He also observed that the business PC refresh cycle has accelerated, with Microsoft recording its second straight quarter of double-digit business license growth. (continued…)

Michael Smith

Michael Smith is a seasoned technology writer with over 10 years of experience specializing in internet-related topics, emerging technologies, and digital trends. His deep understanding of the tech landscape allows him to simplify complex subjects for a wide range of readers, from industry professionals to tech enthusiasts. Michael has contributed to numerous well-regarded publications and has a proven track record of delivering accurate, engaging, and well-researched content. With a passion for innovation, Michael regularly covers topics such as cybersecurity, cloud computing, artificial intelligence, and internet infrastructure. His ability to stay ahead of the curve in this fast-paced field ensures that readers receive the latest insights and information on cutting-edge technologies. In addition to his writing career, Michael holds a degree in Computer Science.

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