Increased Sales for Microsoft Yield Questionable Profits

Sara Cunningham July 15, 2013 0


Microsoft is set to announce its fourth quarter profits on Thursday when all the figures will be unveiled. It’s expected $7.64bn to be announced as Q4 profits. This company has provoked many questions related to its growth. This profit return will come as the biggest boost companies can get these days. Not only Microsoft, every Seattle based business will feel the same amount of morale booster.

The Seattle business has revealed its first loss last year after writing down $6.18 billion. Revenues have climbed 15pc to $20 billion last year. Just for comparison, in the period between 2011 and 2012 the revenue increased only 4pc.

This report comes after Steve Ballmer, Microsoft chief executive, has said that they did a major shakeup in the company in order to recover some of the lost ground to its biggest rivals Apple and Google in the mobile device market. Microsoft lately has been focusing all of its efforts into software production and its Windows OS.

To be honest, Microsoft showed a great efforts to adapt its tablets, Windows 8 based, on the market and to launch its tablet version, the Surface. These devastating attempts have collided with serious criticism. The new reorganization that has been announced on Thursday has shortened up the number of engineer divisions to four. Each of this division will be focused on developing web or hardware services that will speed up the process for delivering new hardware product more constantly on the market.

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Company’s investors have called Ballmer to explain this reorganization and to share details how this will put Microsoft back on the field and be competitive with Google and Apple again. Microsoft won’t be the only company revealing profits on Thursday. Google announced that Thursday is the day when this tech giant will unveil its revenue results.

This means that the Seattle business will be focused on Google, too. This company is set to report an operating profits jump to $3.95 billion. Analysts have reported that this number could have been bigger if this company hasn’t been dragged by Motorola Mobility. Google is expected to deliver $11.33 billion in revenues which is down from $12.21 billion in 2012.

Investors will be watching to see how Google’s ad income is holding up as more users have switched to smartphones and tablets away from PCs.

We are looking forward to informing you of what happens after Microsoft and Google announce its profits on Thursday. Stay tuned.

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