![\"\"](\"http:\/\/i40.fastpic.ru\/big\/2012\/0804\/19\/8b343c708caa569a93efc60ae159ce19.png\" "\\"Microsoft")
<\/p>\nPrior to the release of Windows 8, Microsoft reported a 22% fall in quarterly profits. Total revenue fell 8% to 16 billion. \u00a0What are the reasons for this?<\/p>\n
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One of them may be the recent shift in trends<\/strong>, from laptops to the increasingly popular tablets. This includes rival company Apple’s iPad, and with the release of the new iPad 4 on November 2nd, things may get even worse for Microsoft.<\/p>\n Another major reason is the fact that Microsoft deferred $1.36 billion of revenue<\/strong>. Over 50% of this deferred revenue ($783 million) came from the licensing fees for PCs pre-loaded with Windows 8, which could not be recognized until the new operating system came out later on October 28.<\/p>\n Microsoft also deferred $384 million for Windows 7 PCs that were eligible for a $15 upgrade to Windows 8, as well as $189 for PCs shipped with Microsoft Office 2013 (or are eligible for an upgrade to it).<\/p>\n The fact that Microsoft had such a sharp fall in profit and failed to meet analyst expectations caused shares to fall 3% in extended trading.<\/p>\n Microsoft expects to make a huge comeback with the release of Windows 8 and the new Microsoft Surface tablet.<\/strong> With these two products receiving generally mixed reviews, though, can Microsoft pull it off?<\/strong><\/p>\n <\/p>\n References:<\/p>\n http:\/\/www.bbc.co.uk\/news\/business-19999901<\/a><\/p>\n