Bad and good news from Microsoft Corp. (NASDAQ: MSFT) Bad news? Microsoft’s Q3 profits has fallen 32% to $3 billion. Microsoft’s stumble is not totally restricted to the recession and cautious consumer spending, but rather, it also includes a consumer shift to small computers. Microsoft said 10% of computer sales in their first quarter were for netbooks, which are these small laptops (very portable and convenient, which I am actually considering to get one myself- I have been looking at this Acer netbook for only $349 with 160 GB and 1GB memory. Pretty good deal!)
More bad news? In fact, this is the first time in its 23 year history as a public company to have fallen this much! Previously this year in January, Microsoft said that they needed to lay off workers, cutting 5,000 jobs.
Good news? Companies that want to test their applications for compatibility with Microsoft’s new operating system (OS), Windows 7, do not have to wait much longer! Microsoft has announced that it plans to make its Windows 7 available for trial in May. This needs to be a big hit because Windows Vista has failed to catch on with mainstream computer users. I, myself, still use Windows XP and I know many companies that are still using XP as well. Maybe the release of Windows 7 will be just in time for when students begin purchasing their back-to-school supplies.
Right now, MSFT is up 8.46%, trading at $20.52.
