Mobile Computing News

Photo: Microsoft

Never prepared to let Apple take the spotlight alone, the Microsoft earnings report shows that MS just had the best quarter in its history, with revenue exceeding $16 billion. For those keeping score, that is more than Apple’s $15.7 billion revenue, if only just, but with better margins, to boot.

Pretty numbers

Analysts, on average, expected Microsoft’s revenue to be around $15.3 billion, which Microsoft handily beat, posting revenue of $16.04 billion and net profit of $4.52 billion. Since Microsoft’s financial year starts in the middle of the year, this was in fact the software giant’s Q4 earnings report. As is customary with year-end reports, Microsoft gave its full results for the final year, with revenue totaling $62.48 billion, which is 7 per cent greater than that of 2009. Net income leaped by a very impressive 29 per cent to peak out at $18.67 billion.

Windows 7, you beauty

Windows 7 contributed a massive portion of those revenues mentioned in the Microsoft earnings report, with the company revealing it has sold over 175 million licenses for its latest operating system already. At one point, Microsoft was selling seven licenses per second of its Windows 7 OS. And deservedly, if we may add – it’s a very good piece of kit, a worthy entry to take the mantle from Windows XP as Microsoft’s best operating system to date.

Office 2010 performed admirably, too, which was expected, since it forms one half of Microsoft’s one-two revenue and profits combo.

What do you want from us?

Steve Ballmer and his executive team at Microsoft may feel a pinch of helplessness, though, because even with these better than expected results, investors aren’t showing much confidence in the company, with little stock price movement since the announcement.

Here cometh the big one

Photo: Microsoft

Microsoft is about to enter into, quite possibly, the fiercest battle it has ever been involved in in its storied history – the smartphone industry. With developer builds of Windows Phone 7 Series handsets shipping, Microsoft has finally shown its hand. And, though it’s early to say, we think they may have a chance. Perhaps slim initially, but if the way they muscled into the gaming industry with the Xbox 360 is any sign, Microsoft is willing to wait for investments to pay off.

But neither Google, nor Apple, nor RIM or even the weakened giant that is Nokia will budge an inch. The stakes – and financial windfall – are simply too high to let go.

This Microsoft earnings report is far better than investors are giving Microsoft credit for, with Windows 7 continuing to impress. Windows Phone 7 Series, however, is about to start swimming for its life.

Can Microsoft pull it off? What do you think?