Microsoft Recent Drop In Profit and Declining PC Operating System Share

February 2008 operating system market share

Microsoft surprised investors by reporting its fiscal second-quarter earnings early — and the news was not good. The software giant posted an 11 percent drop in profits and said it will slash 5,000 jobs over the next 18 months.

The company said deteriorating global economic conditions and lower revenue from PC software forced it to cut back. The company also said it is unable to provide any profit and revenue guidance for the rest of the year due to market volatility.

Microsoft is blaming their slow down in profit / sales due to the economy, and although that may be partly true it might also have to do with the fact that Microsoft Vista just purely stinks as an operating system. In my line of work, the company I work for deals a lot with I.T department of Fortune 500 companies all over the world and over the last year, I’ve heard the same answer when I asked my customer’s… Are you planning to migrate / upgrade to Windows Vista?

About 90% of the time, our customers say “NO” they will not be moving to Windows Vista. Windows Vista is buggy, usability sucks, doesn’t work with all Windows XP software and is still unsecure even with what Microsoft calls improvements. The most recent Operating System market share report shows Microsoft at about 88.6% market share and Apple’s Mac OS X at 9.93% and Linux at 0.83%. Microsoft lost 5% market share, while Apple’s Mac OS X share increased at a fast 4.6% rate , along with Linux.

I anticipate Microsoft Windows trend to continue downward going into the future, as more people move off of Microsoft to more reliable, and secure Operating Systems such as Apple Mac OS X and very easy to install and use Linux OS like Ubuntu and Xubuntu.

Related Article:

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