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The weak point was a 4% decline in Windows revenue after excluding the effect of the launch of Windows 7 last year. Given the drop in PC sales, that's hardly surprising. But Windows revenue fell faster than hardware unit sales, which is presumably a concern for the Microsoft.

If you include tablets in the PC market, unit sales are still growing.

And who is benefiting the most from tablet sales? Apple, which last week reported quarterly profit growth of 95% to $US5.99 billion on the back of strong Mac, iPhone and iPod sales.

Microsoft has consistently recorded higher profits than Apple for the last two decades.


 

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Stephen Withers

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Stephen Withers is one of Australia¹s most experienced IT journalists, having begun his career in the days of 8-bit 'microcomputers'. He covers the gamut from gadgets to enterprise systems. In previous lives he has been an academic, a systems programmer, an IT support manager, and an online services manager. Stephen holds an honours degree in Management Sciences, a PhD in Industrial and Business Studies, and is a senior member of the Australian Computer Society.

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