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Microsoft profits fall 22% waiting for Windows 8 launch

October 24, 2012 By: Dr Search Principal Consultant at the Search Clinic Category: Computers, Customer Service, Microsoft, smart phones, Tablets, Technology Companies, Uncategorized

Microsoft has reported a 22% fall in quarterly profits after waiting for the release of its Windows 8 operating system and its latest version of Office.Microsoft profits fall 22% waiting for Windows 8 launchNet profit for the three months to September fell to £2.79 billion ($4.47 billion), from £3.58 billion a year earlier and consequently they missed shareholder expectations.

Total revenues fell 8% to £10 billion.

PC sales fell as consumers either put off new purchases in a tight economy or opted for tablet devices instead.

Microsoft deferred a total of £850 million of revenue, which it will regain in the following quarter.

This included £489 million in licence fees for PCs pre-loaded with Windows 8, because it cannot recognise the revenue until the units go on sale on 26 October.

It also deferred £240 million for PCs that shipped with Windows 7 but are eligible for a £9.50 upgrade to Windows 8, and £118 million for PCs that shipped with the new version of Office or are eligible for an upgrade.

Microsoft shares fell 3% in extended trading.

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