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<h1 class="story-body__h1">Microsoft Windows hurt by PC sales slump</h1>
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<li class="mini-info-list__item"> <div class="date date--v2" data-seconds="1461296415" data-datetime="22 April 2016">22 April 2016</div>
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</figure><p class="story-body__introduction">Microsoft's quarterly profit has missed analysts' estimates as a continued slump in personal computer sales hurt the company's core Windows business.</p><p>The firm's net income fell to $3.76bn (£2.6bn) in the third quarter from $4.99bn a year earlier.</p><p>Its shares were down more than 4% in after hours trading.</p><p>Revenue in its cloud business, which includes Azure, rose 3.3% to $6.1bn, but operating profits at the division shrank 14%.</p><p>"We would have liked to have seen 7% to 9% growth," said Dan Morgan, a portfolio manager at Synovus Trust, which holds Microsoft shares, said of cloud revenue.</p><div id="bbccom_mpu_1_2_3" class="bbccom_slot mpu-ad" aria-hidden="true">
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</div><p>"We're trying to validate this story that Microsoft is truly becoming a cloud company, and they're not going to be relying on the desktop computer."</p><h2 class="story-body__crosshead">'Gaining momentum'</h2><p>Revenue at the software giant fell to $20.53bn from $21.73bn, lower than the $22.09bn analysts had expected.</p><p>Continued weakness in the personal computing market hobbled demand for one-time licences for some of its products, the company said.</p> <p>While some analysts are hungry for more growth from Microsoft, other analysts are adopting a wait-and-see approach.</p><p>"Microsoft's cloud business is gaining sales and momentum in the marketplace, so I am willing to give them the benefit of the doubt on this quarter's missed external expectations," said Matt McIllwain, a venture capitalist at Madrona Venture Group who watches Microsoft closely. </p><figure class="media-landscape has-caption full-width">
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Microsoft chief executive Satya Nadella has been focusing on cloud computing services
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</figure><h2 class="story-body__crosshead">Cloud shift</h2><p>Kevin Turner, <a href="https://www.microsoft.com/en-us/Investor/earnings/FY-2016-Q3/press-release-webcast" class="story-body__link-external">chief operating officer </a>at Microsoft said: "Digital transformation is the number one priority on our customers' agenda. Companies from large established businesses to emerging start-ups are turning to our cloud solutions to help them move faster and generate new revenue." </p><p>Microsoft's chief executive Satya Nadella has focused on developing the company's cloud business since he took over in early 2014, with his "mobile first, cloud first" strategy. </p><p>Earlier this week <a href="http://www.bbc.co.uk/news/business-36088072" class="story-body__link">US chipmaker Intel</a> said it was cutting 12,000 jobs mainly due to lower demand in the personal computer market. Intel also said it wanted to "accelerate evolution from a PC company to one that powers the cloud and billions of smart, connected computing devices".</p>
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<div class="group related-links--external more-on-this-story"> <div class="group__header"> <h2 class="group__title">Related Internet links</h2> </div> <div class="group__body"> <ul class="units-list "> <li class="unit unit--headline" data-entityid="more-on-this-story#1" > <div class="unit__body"> <div class="unit__header"> <a class="unit__link-wrapper" href="https://www.microsoft.com/en-gb/"> <div class="unit__title"> <span class="cta">Microsoft Official Home Page</span> </div> </a> </div> </div> </li> </ul> </div> </div>
<p class="unit__meta">The BBC is not responsible for the content of external Internet sites</p>
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2016-04-24 05:32:43 +00:00
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<strong class="top-stories-promo-story__title">EU-Turkey migrant deal is 'working'</strong>
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<div class="date date--v2" data-seconds="1461444643" data-datetime="23 April 2016">23 April 2016</div>
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2016-04-17 12:26:51 +00:00
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Features &amp; Analysis
</h2>
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<img src="http://ichef.bbci.co.uk/news/304/cpsprodpb/10B0/production/_89327240_nitish4.jpg" class="js-image-replace" alt="Durbar Square, Kathmandu 2016" width="976" height="549" />
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<h3 class="bold-image-promo__title">Then and now</h3>
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2016-04-17 12:26:51 +00:00
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2016-04-24 05:32:43 +00:00
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<h3 class="bold-image-promo__title">Inside the bubble</h3>
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2016-04-17 12:26:51 +00:00
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2016-04-24 05:32:43 +00:00
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<img src="http://ichef-1.bbci.co.uk/news/304/cpsprodpb/2B17/production/_89413011_89413009.jpg" class="js-image-replace" alt="Prince" width="640" height="360" />
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<![endif]-->
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<h3 class="bold-image-promo__title">The sound of Minneapolis</h3>
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2016-04-24 05:32:43 +00:00
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<h3 class="bold-image-promo__title">Moving mountains</h3>
<p class="bold-image-promo__summary">The woman who saved hundreds in Himalayan floods </p>
2016-04-17 12:26:51 +00:00
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2016-04-24 05:32:43 +00:00
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<img src="http://ichef.bbci.co.uk/news/304/cpsprodpb/F773/production/_89374336_hairdetail.jpg" class="js-image-replace" alt="Plait" width="976" height="549" />
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<![endif]-->
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2016-04-24 05:32:43 +00:00
<h3 class="bold-image-promo__title">Abbey mystery</h3>
<p class="bold-image-promo__summary">Secret behind the preserved head of hair in a lead coffin</p>
2016-04-17 12:26:51 +00:00
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2016-04-24 05:32:43 +00:00
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<h3 class="bold-image-promo__title">Your pictures</h3>
<p class="bold-image-promo__summary">Readers' photographs on the theme of William Shakespeare</p>
2016-04-17 12:26:51 +00:00
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2016-04-24 05:32:43 +00:00
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2016-04-24 05:32:43 +00:00
<h3 class="bold-image-promo__title">Weekend Edition</h3>
<p class="bold-image-promo__summary">Features to enjoy, including your comments</p>
2016-04-17 12:26:51 +00:00
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2016-04-24 05:32:43 +00:00
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2016-04-24 05:32:43 +00:00
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2016-04-24 05:32:43 +00:00
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2016-04-17 12:26:51 +00:00
<![endif]-->
2016-04-24 05:32:43 +00:00
<div class="responsive-image__label" aria-hidden="true">
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<span class="responsive-image__label-text">1:22</span>
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2016-04-17 12:26:51 +00:00
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2016-04-24 05:32:43 +00:00
<h3 class="bold-image-promo__title">Marley mask</h3>
<p class="bold-image-promo__summary">The Snapchat row over Bob and other trends of the week</p>
2016-04-17 12:26:51 +00:00
</a>
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2016-04-24 05:32:43 +00:00
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2016-04-24 05:32:43 +00:00
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2016-04-24 05:32:43 +00:00
<h3 class="bold-image-promo__title">Go Figure</h3>
<p class="bold-image-promo__summary">The week's big numbers from the news, visualised</p>
2016-04-17 12:26:51 +00:00
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