Analysts Overestimated Vista?
20. February 2007. | 15:24 16:33
Microsoft shares fell because analysts set the new operating system Vista’s estimated sales range too high.
Microsoft has spent US$ 450mn Vista and Office 2007 releases. The company’s shares fell by 65 cents, or 2.2 percent, and now stand at US$ 28.21. Microsoft CEO Steve Ballmer said this came as a result of analysts’ overly aggressive expectations regarding Vista sales. Investors expected Vista to boost sales considering it was the world’s largest software, but experts believe concrete results won’t be apparent for at least the next 18 months. Ballmer believes the next few months to still bring an increase in the OS sales, adding that an increase in expenses is also to be expected after an unexpected US$ 2.7bn rise in the budget. Microsoft expects a rise in the number of clients and users of their operating system in fiscal 2008. Each of the five parts of the company fared better than predicted last year, although profits fell by 28 percent to US$ 2.63bn, less than expected.