Feeble Windows holds back profits of Microsoft

Feeble Windows holds back profits of MicrosoftThe flagship operating system of Microsoft Corp made only slight gains last quarter, largely due to business and emerging market spending, holding back profit growth for the largest software company of the world.

“We still had Windows miss again, although not by nearly as much as it has the last couple quarters,” said Brendan Barnicle, an analyst at Pacific Crest Securities.

From news.yahoo.com:

Sales of Windows 7, Microsoft’s latest system, have leveled off after a big launch in 2009. Growth is now dependent on Microsoft’s core business customers, which are still spending on technology despite the slow economy.

In contrast, hard-up consumers are waiting for next year’s Windows 8, putting off purchases indefinitely, or opting to buy Apple Inc iPads instead.

Microsoft Chief Financial Officer Peter Klein said the cycle of businesses buying new PCs to replace aging machines was still in the “middle innings,” offering hope of continuing modest growth.

“We expect that dynamic of business PCs growing faster (than consumer) to last throughout this fiscal year at least,” Klein said on a conference call with analysts.

The shares of Microsoft have traded in the $20-$30 range for the last decade, fell 0.7 percent in after-hours trading, to $26.85.

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