Column: Microsoft corp. is doing well where it counts, poorly everywhere else
MINYANVILLE Credit: MINYANVILLE
Microsoft’s (NASDAQ:MSFT) second-quarter earnings report wasn’t a disaster. It may have seemed that way to investors, coming at the end of a three-month 25% rally, but what it revealed was a company doing some things right, and some things wrong.
For Microsoft, that’s business as usual.
The glaring problem was the Windows division.
Sales fell 6% year-over-year, reflecting a 15% decline in revenue from OEM (Original Equipment Manufacturer, i.e. PC) sales.
IDC and Gartner both reported that PC shipments declined 11% in the second quarter, which suggests that inventory drawdown might have eaten into Microsoft’s top line.
The weak results cannot be blamed on Windows 8 alone, as Apple (NASDAQ:AAPL) also reported a 7% decline in Macintosh shipments.
Sarra Sounds Off, Season 3, Ep 3: Top football teams in action, fantasy update and plays of the week Gregg Sarra sounds off on the Northport and Half Hollow Hills East matchup, plus Tess Ferguson has an update on the high school fantasy football standings and Jared Vailuzzi has the plays of the week.
Sarra Sounds Off, Season 3, Ep 3: Top football teams in action, fantasy update and plays of the week Gregg Sarra sounds off on the Northport and Half Hollow Hills East matchup, plus Tess Ferguson has an update on the high school fantasy football standings and Jared Vailuzzi has the plays of the week.
