Microsoft Reports $6.66 Billion Net Income, Thanks To Soaring Windows 7 Sales

The economy as a whole helped to drag Microsoft's profits below where they would have liked them last year, but the company's first quarterly report in the new decade is quite different in nature. Put simply, Microsoft is beaming once more as it rakes in monumental profits, thanks in no small part to the highly successful launch of Windows 7.

Last October, PC users who were fed up with Vista's annoyances were given a way out (multiple ways out, if you consider the various versions of Windows 7), and evidently quite a few took advantage of the opportunity. Revenue in the Windows division alone shot up 70% during the last quarter, which helped to overshadow other divisions that were either flat or down. Still, this is all a great sign of what's to come, and even Microsoft has stated that consumer demand is now "healthy." That's quite the contrast compared to consumer demand 9 or 10 months ago.



For the quarter ended December 31, 2009, Microsoft reported net income of $6.66 billion, a devilish figure that the company will gladly take. A year ago this same quarter, net income sat at "just" $4.17 billion. The performance beat even Wall Street's estimates, as the company sold through some 60 million Windows licenses. That little fact means that Windows 7 is the fastest selling operating system in the company's history, and we have a hunch it had just as much to do with Vista's bad reputation as it did with the high quality of Windows 7.

Now, if only Microsoft would go ahead and come clean with Windows Mobile 7, maybe we could look forward to yet another record-breaking quarter as consumer flock to upgrade from WinMo 6.
Via:  Microsoft
Comments
gibbersome 4 years ago

People have only just started to transition to Windows 7. Windows Vista and XP users still have the vast majority of the OS pie, and they will slowly migrate to Windows 7 in the next year or so consumer demand is indeed healthy.

Microsoft has done exceptionally well for itself. The 60 million copies of Windows 7 they sold this last quarter is a staggering number. Not to mention that Bing is getting off the ground with the Yahoo deal. Plus, Microsoft has   already launched a $100 million marketing campaign to unseat Google. And Zune HD remains the most viable alternative to iPhone.

Soupstyle 4 years ago

Yup, once companies start switching to windows 7 there will be way higher profits in their future.

rapid1 4 years ago

Thia higher profits definitely applies to 7 over Vista specifically. If you haven't upgraded to Vista because of XP or Win2000 apps 7 will run them. That detracts from your upgrade cost over Vista today in a larger way because 7 just drops to XP mode and runs the app. XP was built on 2000 so it should work largely for both.

rapid1 4 years ago

rofl and this is already the fastest selling version of windows at release period.

acarzt 4 years ago

$6.66 billion... Coincidense? Or proof that bill gates cut a deal with the devil?

gibbersome 4 years ago

[quote user="acarzt"]

$6.66 billion... Coincidense? Or proof that bill gates cut a deal with the devil?

[/quote]

 

Haha, good catch acarzt! It makes sense the devil uses Windows...

 

Interesting to note is that while Windows 7 has been responsible for one of the best product cycles in the last decade for Microsoft, it hasn't done much for the major PC makers, such as Dell and HP. The manufacturers had to cut their margins to appeal to budget conscious consumers, this helped Microsoft of course. 90 million PC sales this past quarter and two-thirds shipped out with Windows 7.

http://online.wsj.com/article/SB10001424052748704343104575034233214601248.html?mod=WSJ_Small%20Business_IndustryNews

realneil 4 years ago

Microsoft didn't make a pact with the Devil, they made a pact with us when they sold us VISTA. Unfortunetly they didn't live up to their end of it. We provided lots and lots of money, and they gave us crap for an OS that still to this day under-performs and barely gets by on PC's. We never got anywhere NEAR our money's worth for VISTA, so they should have GIVEN Win7 away to us. Make no mistake, they are a corporation and have no soul, no sense of how to do what's right either, so they will never do right by those of us who bought VISTA for a premium price.

Inspector 4 years ago

Well guess the devil couldn't take his soul either -.- lol

 

But i agree vista was crap and windows 7 should of been handed to all vista users.

rapid1 4 years ago

In many cases 7 has been handed to Vista users. I got Win7 Pro for 10 dollars as a student any student with a school email can do so, you can also get Win7 Home premium if you prefer. If you have your receipt for Vista you can do the same thing if you meet the time requirements. There are also other ways to get it all for much less than retail if you look around I don't know if they all exist but I can think of 3 ways right now. The other is through Microsoft store and or Digital River online. There are also ways to get it by download only which should be easy for most users here. You just download it burn it to your own DVD and make sure to make the ISO disk you burn boot able media during the burn process. The thing is most methods only include 1 license so will only install on a single PC, other than the family pack which includes 3 licenses.

rapid1 4 years ago

Oh you can also download both Win7 enterprise for free for 90 days and from what I understand RC is also still available for free. On top of this you can also get the next version of office for free as well in beta RC form. There is a link that pops on here for 7 Enterprise, not to mention the server version of 7 and quite a few other things are available for nothing. For other things and some of these go here

https://www.dreamspark.com/Default.aspx

There is a wealth of software available (Win7 is not at that link but you can find it if you search through M$ website) specifically if you are interested in programming, they are all free.

bighorse 4 years ago

I like Windows 7 so far, its Microsoft so you never know. The OS seems to run smoother than vista, I have had less complications with 7. I like how Windows 7 appearance is cleaner and it feels like those visuals don't bog your system like vista did. So now we just need Microsoft to nurture 7 like they did XP and we will using 7 for a long time.

rapid1 4 years ago

yeah Bighorse I imagine that is going to be the picture here. From what I gather I think they've already started on the next version of windows as well. Of course don't take that as any definite that's just what it sounds like to me.

3vi1 4 years ago

This doesn't sound like the unabashed success it's being spun as. This sounds like the normal quarter after MS releases any new Windows OS.

For a historical perspective, remember that Microsoft said sales were up 72% the quarter Vista was released.

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