Microsoft Records Strong Hardware Sales, But Revenue Fails to make an impression
Microsoft

Microsoft Records Strong Hardware Sales, But Revenue Fails to make an impression

Microsoft Records Strong Hardware Sales, But Revenue Fails to make an impression

Healthy tablet, Smartphone, and cloud calculating software sales helped to make Microsofts’ revenue to $26.5 billion in the final quarter of 2014, a number that met outstanding expectations but still cut down far short of 2013’s results.

Microsoft Records Strong Hardware Sales, But Revenue Fails to make an impression

Microsoft continues to struggle with the PC sales, which, in turn, changed sales of the firm’s Windows software. That, coupled with the restructuring charges and an income tax hit left the company’s numbers below what investors hoped to see. Shares dipped there percent to $45.63 in after-hours trading.

A man shows Microsoft’s Windows 10 operating system at the CeBIT technology fair in Hanover on March 15, 2015. The CeBIT runs from March 16 till 20. AFP PHOTO / TOBIAS SCHWARZ (Photo credit should read TOBIAS SCHWARZ/AFP/Getty Images)

Although not posting stronger numbers, CEO Satya Nadella was confident. Nadella said that the Microsoft is continuing to change, executing against their strategic priorities and extending their cloud leadership. We are taking bold steps forward across their business, and specifically with Windows 10, to deliver new categories, new experiences, and new opportunities to their customers. Some of the changes in strategy are paying off with the devices and consumer revenue improving 8%to $12.9 billion, overall. Phone hardware sales beat $2.3 billion, with 10.5 million Lumia units sold driven by growth in an affordable Smartphones. Microsoft’s Surface tablet also saw major sales rush, 24% to more than $1 billion while the holidays resulted in 6.6 million Xbox sales.

Office 365 Home and Personal subscribers enhanced to more than 9.2 million, a 30 % jump from the previous quarter as search advertising revenue rose 23 %, with Bing’s U.S. market share coming in at 19.7 %.

A major victory for the Microsoft is its commercial cloud numbers. Revenue leaped 114%, driven by Office 365, Azure and Dynamic CRM Online, and is now on an annualized revenue run rate of $5.5 billion

Microsoft chief operating officer Kevin Turner said that they again saw an enthusiasm and demand around their cloud offerings like Office 365, Dynamics CRM Online & Azure, as well as Surface Pro 3. Their sales appointments worldwide continue to focus on helping the customers & partners transition to the cloud and navigate the shifting product mix related to their services and solutions.

Photo credit: Robert Scoble / Foter / CC BY

Microsoft Records Strong Hardware Sales, But Revenue Fails to make an impression

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