Just pips Apple due to strong Windows 7 sales

Microsoft posts record revenue

Microsoft has reported record Q4 revenue as well as a substantial rise in profits, largely due to the release of Windows 7.

The company reported $16.04 billion of total revenue, up 22 per cent, and $4.52 billion of net income, up 48 per cent on the previous year. The boost was largely due to a robust PC market including large gains in manufacturer OEM licensing due to the upgrade cycle to the latest version of Windows. 

"The revenue growth, combined with our ongoing cost discipline, helped us achieve another quarter of margin expansion," said Microsoft chief financial officer Peter Klein. The company also said that it sold 175 million Windows 7 licences so far, citing a PC unit group of between 22 and 24 per cent. 

The company did, however, report losses in the online services and entertainment and devices groups. $696 million in the online group responsible for Google-competitor Bing and a $172 million loss in the Xbox games console and mobile phone group. 

Overall the results exceeded analyst expectations and also exceeded Apple’s $15.7 billion bumper revenue, retaining pole position in what was expected to be a close run result. 

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