Companies are releasing their financial results for the third quarter of 2022, which ended recently. Microsoft has begun a new fiscal year and has just released its results for the first fiscal quarter of 2023.
The scenario here is very similar to Google’s recently released earnings report – good revenues, but declining profits. The software giant produced $50.1 billion in revenue during the time, an 11% increase over the previous year, while net income fell 14% to $17.6 billion.
There were indicators of a decline in the PC industry earlier this year, but Microsoft’s earnings announcement made it very clear that PC sales are currently in a slump, affecting Microsoft’s Windows performance. According to IDC, PC shipments experienced a 15% decline during the quarter.
The main causes for this were supply chain issues, inflation, and geopolitical concerns, all of which contributed to low PC sales and, eventually, softer demand.
Microsoft’s Windows OEM revenue, which it earns from PC makers paying to use Windows, fell by 15% in the first quarter. According to Microsoft, there has been a “continuing deterioration in the PC market.”
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