Microsoft's profits have dropped by 25%

[firestronk]

http://money.cnn.com/2016/04/21/technology/microsoft-earnings/index.html?iid=hp-toplead-dom

http://tech.economictimes.indiatimes.com/news/corporate/microsoft-profits-drop-25-to-3-76bn-while-revenue-dips-6-to-20-5bn/51937567

Quote

The software giant posted lower than expected earnings and profits for the latest quarter, sending shares down more than 4% in after-hours trading.

This is not good for Microsoft, but in the end they will probably make a recovery like they usually have.

 

Quote

Profit
First quarter of 2015: $5 billion
First quarter of 2016: $3.8 billion

Quote

Sales were impacted by the ever-shrinking PC market and, again, the impact of the strong dollar.

The mobile market seems to be getting stronger and stronger compared to to the PC market. I'm expecting the pc market to keep shrinking with mobile phones getting better and more up to date hardware.

Quote

Windows-based PCs have fallen from a 95% market share a decade ago to 90% today, according to Morningstar. That's thanks to the rise of mobile devices and software from competitors like Apple (AAPL, Tech30) and Google (GOOGL, Tech30).

What do you guys think of this? Do you think that the market will keep shrinking with the rise of mobile phones/tablets?

Edited April 22, 2016 by tobben
Fixed formatting ;)

[Samfisher]

Holy shit that text formatting and colour.

[ShadowCaptain]

4 minutes ago, PhoenixArising said:

What do you guys think of this? Do you think that the market will keep shrinking with the rise of mobile phones/tablets? 

That is one factor

the other is that aside from gamers, and editors, a 5 year old laptop is still good enough for general browsing and documents for the average joe

There is no reason for people to go buy new PCs and Laptops 

[firestronk]

3 minutes ago, Samfisher said:

Holy shit that text formatting and colour.

Sorry about the color lol. I use the dark theme and plus the automatic color thing is setting different colors for the text.

 

4 minutes ago, ShadowCaptain said:

That is one factor

the other is that aside from gamers, and editors, a 5 year old laptop is still good enough for general browsing and documents for the average joe

There is no reason for people to go buy new PCs and Laptops 

True

[Totallycasual]

I'm sure they'll go back up when they start selling scrolling advertisement banner space along the task bar lol  

[captain cactus]

You should still fix that color.

[haloharry97]

6 minutes ago, lots of unexplainable lag said:

You should still fix that color.

what is wrong with it, it looks fine to me

[Ekin]

44 minutes ago, haloharry97 said:

what is wrong with it, it looks fine to me

 

This is what a standard theme user sees

[Maslofski]

what did you expect if you just give out free shit

[GoodBytes]

To be a bit more exact:

• Productivity and Business Processes division grew by 1% bringing in: $6.5 billion
• Windows sales are down, but the dropped slowed down compared to before, at only 2% drop.
• Surface revenue is up to $1.1 billion this quarter. Still no sales numbers are given, but it is clear that the Surface Pro 4 and Book are selling very well. This is an increase of 61% from the same period last year.
• Microsoft only sold 2.3 million Lumia devices Q3 compared to 8.6 million last year. This is expected as Microsoft is not pushing Windows 10 Mobile on it, however, Microsoft is full force releasing new builds twice or three times a month. Clearly Microsoft is preparing for a revive of the Mobile OS, and wants to come in with a good first impression..
• Office commercial and cloud services grew 7%
• Consumer versions of Office also grew 6%, making a total of 22.2 million people (consumers) using its Office 365
• Azure revenue increased by 120 percent
• XBox Live grew 26%

 

Source:

http://www.theverge.com/2016/4/21/11477446/microsoft-earnings-report-q3-2016

http://www.neowin.net/news/microsoft-q3-fy2016-earnings-38bn-net-income-on-205bn-revenue?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+neowin-main+%28Neowin+News%29

[Warcony]

1 hour ago, GoodBytes said:

snip

• Microsoft only sold 2.3 million Lumia devices Q3 compared to 8.6 million last year. This is expected as Microsoft is not pushing Windows 10 Mobile on it, however, Microsoft is full force releasing new builds twice or three times a month. Clearly Microsoft is preparing for a revive of the Mobile OS, and wants to come in with a good first impression..

Microsoft appears to be killing the Lumia line and trying to start fresh with a new line, aka Surface-like branding. I think it is the best move at this point. 

 

All the people who profess their love for Windows Phone keep spewing doom-and-gloom, but Microsoft was very clear at the launch of the 950/XL that the phone was to appease the current fans.

[dalekphalm]

@PhoenixArising Please fix the formatting asap. It's unreadable for Standard Theme users. Highlight all the text and select "Automatic" for the font colour. Otherwise, highlight everything and select "Remove Formatting" buttom (The T with the tiny x).

 

On topic: Microsoft is pushing software as a service more and more, with subscriptions like Office 365 offering really good value for people who upgrade often anyway, and lowering the price of entry for those wanting to get Office (They might be able to afford $99 a year, but not the $400 upfront to get the professional suite of office apps, for example).

 

I also think that we should see a resurgence in sales with Windows Mobile once they release the so-called "Surface" Phone. Surface branding has otherwise done very well for Microsoft.

[GeekJump]

2 hours ago, GoodBytes said:

To be a bit more exact:

DAMMMNN GoodBytes, back again with that information!

 

I was suspecting the loss was from free Win10. Even though I doubt that made any real difference.

[Doobeedoo]

Well people don't need to buy new PCs/laptops every few months like some idiots buy smartphones to high price to open their crappy apps 0.01s faster.

 

[haloharry97]

 

12 hours ago, Ekin said:

 

This is what a standard theme user sees

OOO GOD  good to know standard theme users get the same problem as black theme users

 

[firestronk]

11 hours ago, GoodBytes said:

To be a bit more exact:

• Productivity and Business Processes division grew by 1% bringing in: $6.5 billion
• Windows sales are down, but the dropped slowed down compared to before, at only 2% drop.
• Surface revenue is up to $1.1 billion this quarter. Still no sales numbers are given, but it is clear that the Surface Pro 4 and Book are selling very well. This is an increase of 61% from the same period last year.
• Microsoft only sold 2.3 million Lumia devices Q3 compared to 8.6 million last year. This is expected as Microsoft is not pushing Windows 10 Mobile on it, however, Microsoft is full force releasing new builds twice or three times a month. Clearly Microsoft is preparing for a revive of the Mobile OS, and wants to come in with a good first impression..
• Office commercial and cloud services grew 7%
• Consumer versions of Office also grew 6%, making a total of 22.2 million people (consumers) using its Office 365
• Azure revenue increased by 120 percent
• XBox Live grew 26%

 

Source:

http://www.theverge.com/2016/4/21/11477446/microsoft-earnings-report-q3-2016

http://www.neowin.net/news/microsoft-q3-fy2016-earnings-38bn-net-income-on-205bn-revenue?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+neowin-main+%28Neowin+News%29

Even with all their revenues going up, their profits are going to keep going down with the shrinking pc market and stronger US dollar