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Microsoft profit dips 3.7 percent

by on25 January 2013

Slow Windows 8 adoption to blame

Microsoft posted a 3.7 decline in net income on Thursday, attributed to slow sales of Windows 8.

Microsoft’s net income for its fiscal second quarter was $6.38 billion, down from $6.62 a year earlier. However, revenue rose 2.7 percent to $21.5 billion, up from $20.9 last year.

The results are hardly surprising, as Windows 8 never got off to a good start. The new OS was introduced in October, but it did not meet expectations. The PC market remains slow as ever, hence slow OS sales are to be expected.

In addition, Redmond made little headway in smartphone and tablet markets, with Windows Phone 8 and Windows RT products. Microsoft did not disclose any sales figures for the Surface RT tablet, but analysts believe Surface sales in Q4 2012 hit one million units.

The company is expected to introduce the x86 based Surface Pro in February and a new version of office is also on the way.

Xbox revenue also declined, which is also to be expected as a new Xbox console is coming in a few months.

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