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BW Businessworld

Redmond Paints It Red

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As advertising budgets go, this one is a humdinger. Microsoft reportedly spent $400 million advertising Windows Phone (including for the very snazzy Nokia Lumia 900) over the past two years; in addition, AT&T is also said to have spent another $150 million on ads for Windows Phone.

Microsoft announced its results for the fiscal year and met earnings forecasts, but missed the ones on revenues. This year, there was another difference in the firm's performance. Though Windows is best known for its consumer businesses (Xbox, Bing and now Windows Phone) for the first time ever, revenues from enterprise business were bigger than that of the consumer products business: $18.7 billion versus $18.4 billion.

Microsoft Office was also bigger at $24 billion than the operating systems software sales — and more profitable. MS Office and Windows account for more than half of Microsoft's revenues. The division that sells Xbox, however, made a loss of $260 million. The reason? Payments to Nokia related to Windows Phone.

(This story was published in Businessworld Issue Dated 30-07-2012)