Windows Weakness a Cause for Concern: Analysts
Microsoft's earnings numbers, although strong, also marked a decline in the Windows segment. This is drawing analyst attention.Microsoft's quarterly numbers may rival the GDP of a small nation, but some numbers for the most recent quarter have analysts suggesting the company needs to expand beyond the traditional lines of business that fuel so much of its bottom line. Microsoft's third-quarter revenue hit $16.43 billion, a year-over-year increase of 13 percent. Net income rose 31 percent, to $5.23 billion. Revenue for the company's Business Division rose 21 percent year-over-year, a solid figure nonetheless thoroughly outpaced by the Entertainment and Devices Division, which reported a 60 percent year-over-year increase.
Sales of Office 2010 and the Xbox Kinect hands-free controller helped drive much of that revenue, but buried within those rosy numbers is at least one statistic that could prove troublesome for Microsoft if it continues in future quarters: The Windows segment reported a 4 percent dip, something Microsoft explained in a statement ahead of its April 28 earnings call as "in line with PC trends."