The company posted $20.89 billion in revenue (a 5 percent overall increase) during the second quarter of their fiscal year. Of that revenue $4.74 billion came from the Windows division, $4.24 billion came from the Entertainment & Devices division (a 15% increase), and $6.28 billion came from the Business division (which is responsible for Office).
The Windows division accounted for 6 percent less of Microsoft’s than it did a year ago, accounting for 22.7% of the company’s total sales. This is the lowest it has been since Q3 2009 — a half-year interregnum between the end of Vista’s reign and weeks before the launch of Windows 7 — when it was 20.3%.
“We delivered solid financial results, even as we prepare for a launch year that will accelerate many of our key products and services,” said Steve Ballmer, Microsoft’s CEO. “Coming out of the Consumer Electronics Show, we’re seeing very positive reviews for our new phones and PCs, and a strong response to our new Metro style design that will unify consumer experiences across our phones, PCs, tablets, and television in 2012.”
“Microsoft’s Windows division continued to slide,” said Allan Krans, an analyst with Technology Business Research, to Computerworld.” This marked the fifth consecutive quarter of incremental or negative revenue growth for the division.”
In an earnings call to investors Microsoft says that shifting consumer buying behaviors, from PCs to “competing form factors” (read: tablet-culture), is responsible for the decline in Windows revenues.