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Thursday, January 27, 2011

Microsoft to register lower revenues as PC sales drop


Microsoft Corp is set to report earnings today, but it is being said that the earnings shall see a dip contrary to Microsoft’s brilliant performance last year with the launch of Windows 7, sources reported.But the scenario is different now where tablets and smartphones have flooded the market reducing the demand for PC’, and lowering down PC sales to a great extent.

Though Microsoft is still minting enormous money and dominates the world computer stage with more than 90% computer ownership. But now its stands at a nervous position as PC sales are dwindling amidst an aggressively growing tablets and cellphones market.

At Nasdaq, its stock is down 2.4 percent in the last 12 months, compared with a 24 percent rise. But experts believe that Microsoft still rules the roost in the PC business which have are windows based and are selling over 300 million a year, the only sphere Microsoft missed was related to the smartphones. This very ignorance can become threatening for Microsoft’s revenues.

According to sources, Microsoft is expected to report second-quarter profit of 68 cents per share.

Though Microsoft can take a sigh of relief as its business customers still prefer PC’s to tablets.

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