Microsoft's Net Income Down 30%, Windows 7 Needs To Be A Success

Posted: Jul 24 2009, 5:00am CDT | by , Updated: Aug 11 2010, 3:28pm CDT, in News | Technology News

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Some say they're "shocked" with Microsoft's earnings release yesterday.
Microsoft announced revenue of $13.10 billion for the fourth quarter ended June 30, 2009, a 17% decline from the same period of the prior year.

Operating income, net income and diluted earnings per share for the quarter were $3.99 billion, $3.05 billion and $0.34 per share, which represented declines of 30%, 29% and 26%, respectively, when compared with the prior year period.
Microsoft blames the historic bad numbers on the weakness in the global PC and server markets.

Clearly some of the decline is due to the upcoming release of Windows 7 as consumers and businesses are holding back on buying new systems until Windows 7 is released.
The pre-order promotions of Windows 7 seem to have been a great success and a sign that people highly anticipate Windows 7 and will buy upgrades or new Windows 7 netbooks, notebooks and PCs this fall.

It is extremely important that the rollout of Windows 7 runs as smoothly as possible. The worst thing that could happen is an unstable release or big incompatibility issues.

Of course some consumers will look at the new Mac OS Snow Leopard or even put their hands in their pockets waiting until the free Google Chrome OS will be released in 2010. How many this will be only time will tell.

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<a href="/latest_stories/all/all/2" rel="author">Luigi Lugmayr</a>
Luigi Lugmayr () is the founding chief Editor of I4U News and brings over 15 years experience in the technology field to the ever evolving and exciting world of gadgets. He started I4U News back in 2000 and evolved it into vibrant technology magazine.
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