$16 Billion Profit Recorded by Microsoft

Microsoft sealed this fantastic year by increasing its wealth by $16 billion. Wall street experts were predicting that Microsoft will finish somewhere between range of $14.50 billion to $15.80 billion. Microsoft  has crossed all the expectation by their gain that is good for the company as well as overall software industry, inspite of the slow recovery. Now, large investment in development and growth of software is expected from the software makers.

Helping hands of new products:

In this financial year, Microsoft came up with their most awaited operating system ‘Windows7’. They also launched Office 10 with new features and advancements. These to products are most responsible for the achieved target as officials spotted confirming. Contribution of these two products was major. Future expectations from Microsoft are their products concerned with cloud services viz. Windows Azure. MS programmers are also working on Business Productivity Online Services that are expected to create boom in market.

Windows Vista’s failure was responsible in reduction of profit but now OS market has grown by 26 percent. As it can be seen it has major contribution in $1 billion growth of revenue.

After the success of previous Windows Phones, now Microsoft is busy with creation of Windows Phone7 that is expected in near future. This new phone along with gaming console Xbox Kinect will surely add more to their net profit. Higher royalty costs of Xbox Live are also responsible for the growth. Out of total growth, gaming division reserves 30 percent. Terminating production of Kin smartphones has also increased overall profit of Devices Division. It has recorded increase of $251 billion, which is almost 38 percent of previous.

Analysis by MS experts shows tremendous growth in PC markets also. Growth of around 24 percent has been recorded in this field that is twice of what was expected. MS is very well concerned about the emerging market of Tablet PCs and might invest in it on large scale. Officials confirmed that there are still many areas of industry where they are keen to set benchmark.

How other companies stand:

It has been proved to be great financial year for tech industry. Almost all big giants have recorded their personal best. One of the best microprocessor developers Intel has recorded most profitable quarter. PC shipments were up by 22 percent this quarterly as shown by IDC data.

When Apple crossed MS earlier, it was expected that they would maintain the lead till end. If it would have happened, it was the very first time MS was falling behind Apple in quarterly revenue. The scenario changed completely when Microsoft crossed $15.7 billion revenue of Apple Inc. and became topper of the market.

This entire scenario proves the strength of Microsoft in software field and now users will expect more developments from them for sure.

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