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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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</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 story-alsos more-on-this-story"> <div class="group__header"> <h2 class="group__title">More on this story</h2> </div> <div class="group__body"> <ul class="units-list "> <li class="unit unit--regular" data-entityid="more-on-this-story#1" > <a href="/news/technology-36097461" class="unit__link-wrapper"> <div class="unit__body"> <div class="unit__header"> <div class="unit__title"> <span class="cta"> Xbox 360 games console discontinued by Microsoft </span> </div> <div class="unit__meta"> <div class="date date--v1" data-seconds="1461175830" data-datetime="20 April 2016">20 April 2016</div> </div> </div> </div> </a> </li> <li class="unit unit--regular" data-entityid="more-on-this-story#2" > <a href="/news/technology-35927651" class="unit__link-wrapper"> <div class="unit__body"> <div class="unit__header"> <div class="unit__title"> <span class="cta"> Build 2016: Microsoft proposes helper bot boom </span> </div> <div class="unit__meta"> <div class="date date--v1" data-seconds="1459363934" data-datetime="30 March 2016">30 March 2016</div> </div> </div> </div> </a> </li> </ul> </div> </div> </div>
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