Microsoft suffers in turn the decline of the PC market - Echoes

Echos | 19/07 | 1:09 p.m. | updated at 17:38

annual results released Thursday evening disappointed financial markets. The giant recorded an accounting charge of $ 900 million on its shelves area.

CEO Steve Ballmer on Thursday presented a reorganization of Microsoft. – AFP

far, Microsoft had held up well. The PC market was beautiful quarterly decline in almost two years, the world’s largest software team that nearly 90% of computers around the world with its Windows operating system, continued to accumulate records in terms of growth and profitability.

time seems to be over, as evidenced by its financial results. At the end of the 2012-2013 fiscal year (ending June 30), Microsoft has seen its turnover increase by 6% to $ 77.8 billion. Net income jumped 29% to $ 21.9 billion. But the basis of comparison is favorable, given an accounting charge of $ 6.2 billion spent in 2011-2012, and following the loss of value of a company acquired in 2007. The annual income was less than that recorded two years ago, which stood at 23.15 billion dollars, however, and below estimates by financial analysts. The markets did not hesitate to punish what they see as against performance: the opening of Wall Street on Friday, action broke down nearly 9%

!

Pending Windows 8.1

“Our results have clearly been affected by the decline of the PC” admitted Amy Hood, the new Chief Financial Officer of Microsoft, which was the first presentation of results since taking office in May. During the last quarter, the activity of the Windows division, which weighs nearly a quarter of group revenues, declined by 6%, if positive carryover effect in sales is removed. At the same time, computer sales fell by 11% worldwide. The new Windows 8 operating system, launched at the end of October 2012, just to appeal to consumers – an improved version will be released in September. According to Microsoft, the PC sales to the general public fell 20% over the past three months.

This disaffection is obviously due to the success of tablets. The Redmond company is still struggling to enter the market, which thrive on Apple and Google. The financial results reflect precisely this failure. They include indeed a load of $ 900 million on unsold inventory space, the tablet launched by Microsoft last fall. The price drop 30% practiced a week ago on these products foreshadowed poor sales, while the group has so far not announced the release of new models. “We know we must do better, especially in mobile devices,” admitted Amy Hood at a conference with financial analysts.

Transition in progress

financial results also illustrate the transition initiated by Microsoft. Steve Ballmer announced at last year to its shareholders: he wants to reposition the software publisher “a society of devices and services.” The new organization unveiled ten days ago is just supposed to reflect this change in model with a transverse distribution of different functions, and the departure of some historical leaders.

One thing is certain, this transition will not be easy. “Microsoft has realized it needed to evolve to not lose ground in the various markets, says a financial analyst. But change takes time. And it will be complicated, given the economic environment remains very uncertain. ” The exercise begins again promises to be lively.