The Straits Times
Published on Oct 19, 2012

Microsoft profit slips more than expected as PCs fizzle


SEATTLE (REUTERS) - Microsoft's quarterly profit fell a greater-than-expected 22 per cent, as sales of computers running its Windows operating system dipped and some revenue was deferred ahead of upcoming releases of its core Windows and Office products.

The sharp decline surprised investors, who had underestimated the effect of weak personal computer sales, sending Microsoft's shares down more than 2 per cent in after-hours trading.

"To us it seems like the macro conditions certainly deteriorated in the third month and no tech company will be immune to it," said Mr Trip Chowdhry, analyst at Global Equities Research.

Earlier on Thursday Google reported sharply lower profit amid slowing advertising, following downbeat reports from Intel and International Business Machines this week.