It was not unexpected but Microsoft did have it tough in Q1 13 with revenue down 8% to $16bn and net income dropping 22% to $4.5bn.
With PCs falling out of favour and the imminent arrival of Windows 8, the Windows and Windows Live division was hit particularly badly with revenue down 33%. The Business Division dropped 2% - impacted by the scheduled arrival of the new version of Office but also by the fallout from the decline in Windows and PCs sales no doubt. With an 8% increase in revenue, Server and Tools was much healthier, as was the Online Services division, which was up 9%.
TechMarketView subscribers can read our analysis of Microsoft’s performance in HotViewsExtra here but what is noticeable is that the major vendors are suffering - and it is not just due to the economic climate. The likes of IBM (see here), Google (see here), and Intel are sharing similar levels of pain as disruptive forces such as the cloud and mobile, and trends like BYOT and the consumerisation of IT make their presence felt. If anyone doubted the level of disruption in the industry, those doubts must now be swept away – and there is more to come as the impact from these trends accelerates ever faster.