Microsoft Surface Sales Were Promising Amid Slow Sales Of Windows Phones

Microsoft sales, Windows Phone, Microsoft Surface

Microsoft Surface sales are exceptional but Windows Phones disappoint yet again

Microsoft Corporation has recently posted its second quarter report for FY16 where the company has succeeded in making $6.3 billion in terms of net income where revenues worth $25.7 billion have been reported. The company is suffering from weak phone sales but Surface has succeeded in achieving several milestones which denote amazing server and cloud growth. The software giant has stopped relying on Windows and is now dependent on server and cloud services to cope up for the losses governed via Windows.

The revenues from Surface have dipped in the previous trimester and now it has risen by 29% on a year over year basis summing to $1.35 billion. According to the tech giant, Surface Pro 4 and Surface Book have assisted the company in bolstering overall revenues from Surface. During the same tenure, the revenues from Microsoft Windows Phone continue to go down on a year over year basis by 49%. The company might have come up with the Lumia 950 and Lumia 950 XL recently, but now they are actually minimalizing their phone efforts along with the number of gadgets it releases each year.

The company only managed to sell 4.5 million Lumia smartphones in the present trimester in contrast to 10.5 million it had retailed earlier. It clearly indicates that the future is quite blur for Windows Phones.

Windows 10 might have launched only 6 months back but the PC market is still declining. MSFT’s OEM Pro revenues went down by 6% in the previous quarter. This is not as bad as the 13% decline however, the overall phone and Windows revenues have affected the overall revenues in terms of the company’s “more personal computing” efforts. The company is now devising significant updates for its operating system in the months to come with an improved Edge browser and Cortana. News regarding the updates will pave its way to the Build developer conference in March.

Considering the company’s gaming domain, MSFT observed that the number of Xbox Live monthly users have evolved by 30% on a year over year basis to 48 million. On the other hand, the Xbox hardware revenues have gone down because of the decline in demand of the Xbox 360. This is merely because of the sales shift to Xbox One but the company is not unveiling how many consoles it has retailed in the upcoming trimester. Thus Xbox has achieved new sales milestones.


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