Microsoft sees profit and revenue plummet

Microsoft, the world’s largest software maker, has seen profit and revenue plummet in the three months to the end of June, knocked by falling computer and server sales.

Microsoft

It reported a net profit decline of 29% to $3.1bn (£1.9bn) compared to the same period last year, while revenue fell 17% to $13.1bn (£7.9bn).

The company however is benefiting from a major cost cutting stratgey. Chris Liddell chief financial officer says: “In light of the environment, it was an excellent achievement to deliver over $750m of operational savings compared with the prior year quarter.”

Microsoft rakes in the majority of its profits from its Windows operating system and business software such as Office. In a crucial new launch, it is due to roll out its new Windows 7 operating system in October.

However, it could soon be faced with stiff competition from Google which earlier this month announced plans to develop an operating system aimed at laptop users.

The internet company is planning to launch Google Chrome Operating System next year and will initially see it develop a number of netbooks for the market.

Meanwhile, Microsoft has topped the 2009/10 Superbrands survey, stealing the lead from Google which dropped down to third position.

Latest from Marketing Week

PLEASE SIGN IN OR REGISTER. IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and inspiration that will help you develop as a marketer and leader.

Register and receive the best content from the only title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work, so we can make Marketing Week more relevant to you.

Register now

THE BEST CONTENT

Our award winning editorial team and columnists will ask the biggest questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we will be your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Dedicated to developing your skills and helping you achieve marketing excellence. Find guidance on leadership, professional development and the latest industry jobs.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here