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Microsoft's Windows revenues plunge 30%

Gregg Keizer | Jan. 27, 2011
Revenues from Windows plummeted 30% last quarter compared to the same period the year before, Microsoft said on Thursday.

No matter what the ledger book said, Microsoft continued to tout Windows 7's success, announcing today that it had sold more than 300 million licenses since the October 2009 launch.

The last time Microsoft talked about Windows 7 sales was in late October 2010, when it said it had sold 240 million licenses .

The 60 million copies sold since then translates into a pace of about 7 licenses per second, down from the 8.4 licenses per second between July 21 and October 12, 2010, as well as off the 9.97 licenses per second sold during a 29-day stretch from June 23 to July 21, 2010.

Helm again pointed out that sluggish PC sales means just-as-sluggish Windows revenue growth. "Windows lives and dies by the PC market," he said. "And the PC market is seeing some impact in the consumer space from the iPad."

Although Microsoft did not mention the word "iPad" during the earnings call, one analyst asked about tablets and their impact on PC sales.

"Over the course of this year, some of the [netbook] volume has been replaced with other devices, including ultra-notebooks and tablets," said Peter Klein, Microsoft's chief financial officer.

Overall, Microsoft pegged its revenues at $19.85 billion , a record for the October-December quarter.

Sales from the company's Entertainment and Devices division, helped immensely by the success of Kinect and its halo effect on the Xbox 360 game console, grew by a whopping 55%, the best showing of any Microsoft group.

"I'd say Microsoft had a strong quarter considering what's going on in the PC market," Helm said.

 

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