Windows’ cut of Microsoft revenue drops to two-year low

Windows’ contribution last quarter to Microsoft’s revenue hit its lowest point since Vista’s swan song more than two years earlier, according to figures released by the company Thursday.

For the quarter ending Dec. 31, the Windows division accounted for 22.7% of the company’s total sales, its lowest share since the 20.3% that the group recorded during the third quarter of 2009, at the end of Vista’s reign and just weeks before Windows 7 launched.

“Microsoft’s Windows division continued to slide,” said Allan Krans, an analyst with Technology Business Research, in an email late Thursday. “This marked the fifth consecutive quarter of incremental or negative revenue growth for the division.”

Windows revenue for 2011’s final quarter was $4.74 billion, down 6.1% from the $5.06 billion in the same period the year before. Microsoft’s total revenue last quarter was $20.89 billion.

Since Windows’ peak in the final quarter of 2009 — Windows 7 launched in the middle of that three-month period — the operating system’s portion of Microsoft’s revenue has been shrinking. Windows’ share has fallen almost 14 percentage points since late 2009, when the division accounted for 36.3% of Microsoft’s revenue.

Full Story Via Computerworld