Microsoft smartphones sales fell by 73% and no light at the end of the tunnel

Microsoft has filed financial results for the period ended March 31, i.e. the first quarter of 2016, where the company has fallen below expectations with numbers that follow with the downward trend of previous quarters.

The Redmond Company is presenting revenues of 20,500 million dollars and a net profit of 3.800 billion, a decrease of 5.5% and 24% respectively against the same period last year, plus analysts expected a higher income to 22 billion, so the company’s shares have fallen slightly in after-hours trading.

Microsoft smartphones
Image Source: Google Image

Xbox, Surface and cloud with very good health

Chunking all these numbers, Surface has been the business more successful hardware for the company, with an increase of 61% in sales, remaining in revenues of 1,100 million dollars, however, it is unknown how the participation of each of products within these income because Microsoft never wanted to give numbers by model.

On the other hand, Xbox shows us a 9% increase in game sales, 18% more advertising revenue, 22% increase in subscriptions and transactions Xbox Live, representing an increase of 26% in users assets, leaving 46 million users of the platform in the world.

The other three product lines that show growth are ‘Intelligent Cloud’, which contains Azure and Windows Server, with revenues of 6,100 million, up 3% over the previous year; while ‘More Personal Computing’ with Windows 10, and ‘Productivity & Business Services’ with Office, show a slight increase of 1% each.

Seeing this in more detail, ‘More Personal Computing’ presented a 26% drop in revenue from licensing patents, Azure is big business in the cloud for Microsoft to present a brutal increase of 120%, and finally Office 365, who already it has 22.2 million subscribers.

Microsoft mobiles in freefall

But not all good news, business phones being the most difficult for the company, revenue is division have fallen by 46% over the previous year. For this quarter Microsoft is reporting sales of 2.3 million Lumia devices, i.e. a precipitous drop of 73% compared to what was seen a year ago, and it is no surprise if we see the previous quarter this figure was 54%, so the downward trend continues and cannot see how to get out.

You may also like to read another article on NetDigEdu: How the ‘artificial empathy’ could change the relationship between brands and consumers?

The situation Microsoft is not simple, its commitment to the cloud has been the best decision I have taken, as with Surface are the divisions that keep the company afloat, because neither Windows 10 or Office have pointed out, this is due mainly to the decline in PC sales, while the case of smartphones may be the most worrisome because today we do not know a clear and aggressive strategy that seeks to promote this business, however Satya Nadella has clarified that they are be aware of the problem and to take action on the matter, what is clear is that the mobile business is no longer a priority for the company.

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