Recent figures from Microsoft showed both reduced revenues and lower gross profit for the second quarter. Revenues landed at $ 20.6 billion and earnings of $ 12.6 billion, representing decreases of 7.1 and 14.1 percent compared with the same period last year.
But now the company’s Windows Business signs recovery. And manufacturers of original parts for PCs have reaped successes in both the business side and among premium consumers, writes IDG News.
Microsoft saw a significant improvement when it came to operating profit for the second quarter, an increase of 250 percent. However, it should be said that there is a directly comparable figure. Increase due, according to IDG News namely only on the second quarter of 2015 included the extensive impairment of Nokia operations.
If you remove the Nokia out of the equation is Microsoft left with the lowest operating profit for the quarter in nearly four years. Something that was mainly due to increased investments in sales, marketing and research and development. Investments necessary for the company to keep pace, and take again, the competitors in the cloud market.
Analysts from Technology Business Research points out, however, that the decline would have been less if it were not for exchange rates. They also say that the level of sales and earnings still shows that the company has the ability to generate good margins in a highly competitive market.
“Microsoft seems to have done rid of the lingering effects of the decline in Windows licenses halted their performance the past two years, “said analyst Jack Narcotta.
According to him, it is Windows 10, and that the operating system is now matured, helping OEMs on the commercial market selling licenses for Windows Pro in new computers in a more efficient manner. Add to that a wider variety of 2-in-1 plates and notebooks shipped with the latest operating system also draws the attention of businesses and consumers alike.
“While the global PC market continue is weak, there are pockets of growth opportunities in these emerging segments: premium consumer and business PCs, “said Jack Narcotta.
as a result of this starting now manufacturers are slowly trying to make money in the new markets. And meet the increased demand of notebooks for business, as well as premium products to consumers in the form of, inter alia, 2-in-1 plates. A particular focus will likely put on building customer loyalty and brand names of the manufacturers. Microsoft for its part promises to speed up the updating of older models and to encourage the sale of new and more expensive units. Technology Business Research believes that this year’s second quarter is only the first step in a recovery that will take longer, but still a step in the right direction.
Microsoft’s ambition has been that Windows 10 will reach one billion users to 2018. The dreams seem to be running out with the dishwater. Which also demonstrates the challenges IT company faces when it comes to getting sustainable growth with the new operating system and not only to revive the short-term transition. A contributing factor is, if you ask the company representative, the sale of the business for Windows-based phones. Sheep analysts question will also reduce PC sales.
So far, companies have been able to download and run the Windows 10 free. But at the end of the week it is out of free riding was, and a subscription fee is introduced. Henceforth, it cost seven dollars per month, and users. Something that also probably will lead to additional license purchases among the world’s companies.
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