Reuters - Video

Edition: U.S. | U.K. | IN | CN

Finance Videos

Microsoft grade: needs improvement

Friday, January 25, 2013 - 02:29

Jan 24 - Microsoft holds its dominance in the software world but quarterly results show the company continues to struggle with its consumer segments as it tries to reinvent itself in a post PC-world. Conway G. Gittens reports.

▲ Hide Transcript

View Transcript

Microsoft may be king when it comes to software, but the company is still struggling to find success in a world moving increasingly away from the personal computer. No high marks when it comes to consumers' response to Microsoft's latest products like the Surface. Ross Rubin of Reticle Research: SOUNDBITE: ROSS RUBIN, PRINCIPAL ANALYST, RETICLE RESEARCH (ENGLISH) SAYING: "I would probably give a C+ at this point. At lot of consumers and professionals are waiting for the Pro version of Surface, which will provide the backward compatibility with today's Windows applications." STAND-UP: CONWAY G. GITTENS, REUTERS REPORTER (ENGLISH) SAYING: "One thing noticeably absent from the earnings release - there were no specific sales figures on the Surface tablet, which suggests the device did not do as well as Microsoft hoped during the key Christmas season." But Microsoft is already working on extra credit to try to get that grade up. A version of the Surface using an Intel chip will hit the market in early February, which means this Surface can run all the old programs and apps on older Windows devices. And speaking of Windows: SOUNDBITE: ROSS RUBIN, PRINCIPAL ANALYST, RETICLE RESEARCH (ENGLISH) SAYING: "Windows 8. Probably a B+. I think there was a lot of skepticism regarding whether Microsoft would be able to make the case for an operating system that combined the worlds of keyboard and mouse and the world of touch screens and these bold colors and it seems like consumers are adopting it." Sales from its Windows division were up 24 percent in the fiscal second-quarter compared to the year before. So far, Windows 8 has sold over 60 million licenses. That demand boosted total revenues to $21.5 billion for the quarter and $73 billion for the year - as the operating system continues to fuel sales growth year after year after year. But once again - the transition from the big screen to the small screen has been less successful. SOUNDBITE: ROSS RUBIN, PRINCIPAL ANALYST, RETICLE RESEARCH (ENGLISH) SAYING: "Windows Phone 8. We would probably give them about a solid C at this point, still trailing very far behind Apple and Android." As a whole, the entertainment and devices division which includes the phone and the Xbox suffered a double-digit drop in revenues. Not good during the holiday season when consumer products are expected to fly out the window.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Microsoft grade: needs improvement

Friday, January 25, 2013 - 02:29

Editors' Picks »

Business »

Moving Pictures »

Images of December Images of December

Tue, 23 Dec, 2014 - (0:30)

Tsunami - unclaimed possessions Tsunami - unclaimed possessions

Tue, 23 Dec, 2014 - (2:23)

Images of November Images of November

Tue, 02 Dec, 2014 - (0:30)

Images of October Images of October

Mon, 03 Nov, 2014 - (0:57)

The world in a city The world in a city

Fri, 31 Oct, 2014 - (1:30)

Real-life superheroes Real-life superheroes

Tue, 28 Oct, 2014 - (1:44)

Dance of the northern lights Dance of the northern lights

Mon, 20 Oct, 2014 - (1:08)

Images of September Images of September

Thu, 02 Oct, 2014 - (1:00)

Still missing – MH370 Still missing – MH370

Fri, 05 Sep, 2014 - (2:05)

Burning Together Burning Together

Mon, 01 Sep, 2014 - (2:23)

Sports And Leisure »

Mourinho's "Let's go to Wembley" Mourinho's "Let's go to Wembley"

Wed, 28 Jan, 2015 - (1:16)

Diver Daley trains in Rio Diver Daley trains in Rio

Tue, 27 Jan, 2015 - (0:55)

Drogba on his Chelsea hopes Drogba on his Chelsea hopes

Mon, 26 Jan, 2015 - (0:52)

NBA legend shoots from the hip NBA legend shoots from the hip

Wed, 14 Jan, 2015 - (1:13)

Tennis ace Murray proposes to girlfriend Tennis ace Murray proposes to girlfriend

Thu, 27 Nov, 2014 - (0:41)

Sports Spread: Tinkering Liverpool target Chelsea Sports Spread: Tinkering Liverpool target...

Thu, 06 Nov, 2014 - (11:18)

Flying car prototype takes to the skies Flying car prototype takes to the skies

Wed, 29 Oct, 2014 - (2:18)

Dateline Asia »

Samsung sees profits slide Samsung sees profits slide

Thu, 29 Jan, 2015 - (0:57)

Chinese firms on overseas shopping sprees Chinese firms on overseas shopping sprees

Thu, 29 Jan, 2015 - (2:28)

iPhone grabs top spot in China iPhone grabs top spot in China

Wed, 28 Jan, 2015 - (1:40)

Robot replacements for Foxconn's workers Robot replacements for Foxconn's workers

Wed, 28 Jan, 2015 - (1:12)

Alibaba could set sights on Yahoo Alibaba could set sights on Yahoo

Tue, 27 Jan, 2015 - (1:24)

Fashion designers finding haste makes waste Fashion designers finding haste makes waste

Tue, 27 Jan, 2015 - (2:07)

Be afraid, the Chinese are spending less Be afraid, the Chinese are spending less

Mon, 26 Jan, 2015 - (1:33)

Asia markets shrug at Greek elections Asia markets shrug at Greek elections

Mon, 26 Jan, 2015 - (1:36)

Asia markets toast ECB stimulus Asia markets toast ECB stimulus

Fri, 23 Jan, 2015 - (1:42)

Asia Week Ahead: Markets await Greece vote Asia Week Ahead: Markets await Greece vote

Fri, 23 Jan, 2015 - (1:18)

Reuters Investigates »

Where the sea is closing in Where the sea is closing in

Thu, 20 Nov, 2014 - (3:41)

Re-homing victim: "I could have been dead" Re-homing victim: "I could have been dead"

Wed, 19 Feb, 2014 - (8:24)

Cops and loggers in the Amazon rainforest Cops and loggers in the Amazon rainforest

Fri, 10 Jan, 2014 - (4:01)

"Passed around like a dog" "Passed around like a dog"

Thu, 29 Aug, 2013 - (6:32)

Adopted, then abandoned online Adopted, then abandoned online

Thu, 29 Aug, 2013 - (13:22)

How the DEA keeps its secrets secret How the DEA keeps its secrets secret

Mon, 05 Aug, 2013 - (1:36)