Yesterday, Microsoft announced quarterly revenue of $21.46 billion for the quarter ended December 31, 2012. With operating income – $7.77 billion, net income $6.38 billion and diluted earnings per share for the quarter were $0.76 per share. Wall Street was looking for earnings of 75 cents a share on revenue of $21.53 billion.
However, according to a report from Digitimes, Microsoft hierarchy clearly believes that things could be a lot better.
Digitime is reporting that Micrsoft is about to take a leaf out of their tablet playbook (launching of the Surface tablet) and launch a reference Windows Phone 8 reference device mid 2013. That is, expect a Windows Phone 8 smartphone from Microsoft this year.
Last year, Steve Ballamer made not secret of this company’s desire to compete with Apple in all area at the company’s annual Worldwide Partner Conference in Toronto, even in hardware manufacturing.
Steve Ballmer:[quote] We are trying to make absolutely clear we are not going to leave any space uncovered to Apple. We are not. No space uncovered that is Apple’s.
We have our advantages in productivity. We have our advantages in terms of enterprise management, manageability. We have got our advantages in terms of when you plug into server infrastructure in the enterprise.
But we are not going to let any piece of this. Not the consumer cloud. Not hardware software innovation. We are not leaving any of that to Apple by itself. Not going to happen. Not on our watch.[/quote]
This move will see Microsoft follow in Apple’s footstep and become a more vertically integrated company. It is also not surprising given that Google has used a similar strategy with the Nexus line of smartphones and tablets.
“Microsoft is reportedly cooperating with chipset suppliers including Qualcomm on development of Windows Phone 8 reference design aiming to attract more smartphone makers in China to enter production of WP8 phones for the entry-level and midrange smartphone segments in China and other emerging markets,” Daniel Shen and Steve Shen report, based on infomation from sources. “Microsoft is expected to release the WP8 reference design in mid-2013, with smartphone models built on the reference design to hit the market in the second half of the year.”
The Windows Phone 8 smartphone will help Microsoft expand the ecosystem and market share of its new Windows Mobile platform, according to the report.