Microsoft Makes Great Gobs of Cash Despite Sluggish PC Growth

Illustration for article titled Microsoft Makes Great Gobs of Cash Despite Sluggish PC Growth

Microsoft's posted record first fiscal quarter revenue, bagging $17.37 billion on the way to $5.74 billion of net earnings. The usual suspects—Office, Servers and Tools, Xbox—did gangbusters, while Microsoft glazed over Bing and Windows Phone. Business as usual!


Also of note: Skype, which has officially been fully assimilated by the Microborg, will be considered part of the company's Devices and Entertainment division, which could indicate that you'll be seeing video chat in your WP7 and Kinect sooner than later.

One area of some concern was PC growth, which was a disappointing 2% in the quarter, according to Microsoft's Bill Koefoed. Details as to why, and to what extent that's a problem for Ballmer's merry band, should reveal themselves during Microsoft's earnings call at 5:30EST. We'll be listening in, and updating as warranted. [Microsoft]



Their big bucks are Windows and Office which are the cash cows of corporate enterprise. Yes, they make a few bucks by selling PC's to consumers but the vast majority of the profit is in corporations. Their real consumer products over the past year are Xbox, Zune, WP, Bing, Skype, MSN, etc. - and, aside from Xbox, this is the area they are having difficulty. The fact they are making huge bucks despite that is not a surprise since they built their licensing and profit model around their cash cow, not on being able to outsell the iPhone or our search Google.