Microsoft's Consumer Windows Sales Fell 22% Last Quarter
AP
Microsoft's revenue from PC makers was down 7% during the quarter, which is actually better than Microsoft expected. Microsoft was expecting a 15% drop.
The 7% drop in Windows revenue was entirely due to weakness with the consumer PC market. Microsoft said it had a 22% drop in consumer Windows revenue, while sales to enterprises was actually up 6%.
This is a mixed bag of news, but on the whole, it seems positive.
Microsoft reported record September quarter earnings despite the weakness in the Windows group. The quarter's revenue growth was driven by increases in cloud business, servers, and software to enterprises.
These businesses make up a strong core for Microsoft, and show the company is in good shape for whoever takes it over once the board finds a replacement for current CEO Steve Ballmer, who is on his way out.
However, the weakness in the consumer market is a long term, looming threat. Microsoft has always been quick to point out that there is a "consumerization of IT" trend out there. This means that people are starting to use their personal devices at work.
If consumers are no longer buying Microsoft products for their homes, then in the not too distant future, they'll stop using Microsoft products at work.
But, for now, enterprises are buying Windows. They're using Office. And Microsoft is selling servers. So, the weakness in the consumer PC market is not a killer.
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