Microsoft and Google Announce Massive Hike in Profits
MICROSOFT AND GOOGLE ANNOUNCE MASSIVE HIKE IN PROFITS – The two internet and software giant’s both revealed a huge hike in annual profits as they adapt quickly to an ever changing market due to people’s use of mobile and tablet devices.
Google experienced a move in upward profit of over £2 billion while Microsoft saw its profits increase by a staggering £4 billion.
While Google is still suffering loses over the decline of sales from its Motorola acquisition other areas of the business such as Android and its advertising network showed healthy year on year growth.
Shares in Google continue to climb on the impressive performance of the corporate giant and in March 2013 shares an all time record high of £550 per share – on the close of trading on Friday shares stood at £512 per share.
It has long been acknowledged that the ‘Personal Computer’ is in decline as people switch to browsing the internet through a plethora of mobile devices and tablets. All web based businesses are adapting to this trend by creating ‘responsive’ designs so that their websites can be viewed properly on mobile and tablet devices.
Meebal.com itself is a fully responsive website – try browsing Meebal.com on your iPad or Samsung Galaxy phone and it renders beautifully.
“We have no choice it is the user that determines how and on what devices Meebal.com is viewed. Currently some 68% of all Meebal.com visitors view the website using a mobile device.” Graham Briar, Founder Meebal.com
While advertising remains a strong part of Google’s bottom line it has noticed that advertising rates on mobile and tablet devices are lower compared to rates on PCs. However, as with any changing market it takes time for advertisers to adapt and realize the potential of these and Google has announced that the average ‘cost per click’ is rising.
Other positive steps include the on-going development of Google’s Android operating system which now is used in approximately 70% of all mobile and tablet devices.
As for Microsoft they have had an exceptionally good year with revenue growth of 18% which helped bolster its share price to a close on Friday of £19.50.
Microsoft focused on the selling of more corporate software contracts which is offsetting the trend of people moving away from the PC market and software that Microsoft produces for it.
In recent years Microsoft appeared to have lost its edge in finding a new market in the ever changing marketplace which is why share prices have not seen much of an increase for the past 10 years.