Today Microsoft Corp. announced revenue of $26.5 billion for the quarter ended December 31, 2014. Gross margin $16.3 billion, operating income $7.8 billion, and diluted earnings per share for the quarter were $0.71 per share.
This shows that rest of 2015 won't be so great for investor’s point of view. Stocks sink 4% after news. This shows investors’ fears.
Lets get to know what are the reason behind this;
- After Microsoft has ended its support for its hit Windows XP, businesses are not upgrading their PCs to newer operating system. Although, Microsoft move of ending support force business to upgrade to latest Windows 7 and Windows 8 but its a slow process.
- Big parts of Microsoft earning was from sale and subscriptions of its Windows Operating system for PCs. However, at the Launch Event of Windows 10, Microsoft promised to consumer that it will offer Free Upgrade to all the Windows 7 and Windows 8.1 user. That surely will cause a big to Microsoft.
- Microsoft is also giving windows free to manufacturers of small windows tablets. which will hurt it in its earnings.
- Microsoft has always low Sales and revenue from world largest economy China and Japan.
- Microsoft is offering no cost or almost free cloud service for single user while it is starting to offering more expensive and extensive service to its enterprise users. Microsoft has spent $1.5 Billion on its Cloud Infrastructure for future users base.
Redmond, WA-based Microsoft is engaged in developing, licensing and supporting a range of software products and services. The company also designs and sells hardware, as well as delivers online advertising to customers.
Read More:
Post a Comment
This place is for you, feel free to Discuss above topic in below comment box.