Microsoft lost money on the revenue from "mobile and embedded products" in Q3, however, the revenue growth is encouraging. The stock was hammered today and lost more than 11% of it's market value. That equates to a $32 billion dollar haircut for stockholders.

Mobile and embedded revenue rose 46 percent to $89 million but the operational loss amounted to $14 million, compared to $61 million and a loss of $9 million a year earlier. The 46 percent revenue growth coincides with many of the new Windows Mobile devices we have seen launched over the past year. Microsoft expects 2006 fourth-quarter Mobile and Embedded Devices revenue growth of 15 percent to 25 percent. (number source microsoftmonitor.com)

Emerging market areas such as mobile and home entertainment are becoming growth sectors for MS versus their traditional products. With the recent disclosure of upcoming mobile operating systems such as Crossbow and Photon , MS continues to show strong investment in the mobile market.
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