Microsoft Surface sales are up 29%, but phones are down 49%
Microsoft has just released its earnings report for the last quarter and the major conclusion is that Windows Phone may be heading the way of BlackBerry OS, in terms of sales.
For Microsoft, the last quarter was actually the second quarter of 2016, as their year business year ends in June. For Q2, the company earned a respectable $6.3 billion in net income on a revenue of $25.7 billion, which is down slightly from the $26.14 billion it recorded a year ago. Either way though, the company still managed to beat analysts’ expectations by a respectable margin, with Wall Street expecting the company to report a revenue of $25.26 billion.
In terms of device sales and revenue, the company’s Surface revenue was up an impressive 29% year over year to $1.35 billion, which Microsoft says is due to high demand for the newly launched Surface Book and Surface Pro 4. In fact, the Surface line seems to be one of the very few tablet lines that hasn’t seen its sales decrease year over year, but not all was good for the company.
Microsoft’s Windows Phone revenue decreased a whopping 49% year over year, a very big hit in terms of revenue, despite the company recently launching two new flagships, the Lumia 950 and Lumia 950 XL. The company only sold 4.5 million devices during the quarter, compared to the 10.5 million devices it sold during the same period last year, which equates to a huge 57% decrease in shipments.
The declining PC market affected the company further as well, with Microsoft reporting a 6% fall in Windows OEM pro revenue, which is a bit of a surprise considering they only released Windows 10 towards the end of July. Microsoft did report a 30% year over year increase in Xbox Live subscribers though, with numbers now at 48 million, and a further 20.6 million Office 365 subscribers also resulted in a 70% increase in Office revenue.
Finally, the company revealed that Xbox hardware sales fell, due to a lower number of Xbox 360 sales, but it did mention that there are now over 200 million active monthly Windows 10 devices.
What do you think of Microsoft’s earnings? Let us know in the comments below!
Source: | PhoneArena |
-
Photo Credits: | Techradar | | Microsoft |
