Microsoft’s latest quarter was more of the same: tablets strong, phones weak

Curious how your favorite mobile companies have been doing? You’re in luck, as the biggest of the big are lining up to share their latest financial figures. Today we’ve got new reports incoming from a couple of these giants, and right now we’re taking a look at Microsoft’s. The company’s unsurprisingly making good money (though it’s seen better quarters), and on the hardware side we’re seeing the continuation of some familiar trends.

Quarterly revenue hit $20.5 billion, with net income of $3.8 billion. While those figures are slightly down from last year ($21.7B and $5.0B, respectively), as well as down from last quarter ($23.8B/$5.0B), they don’t represent so large a dip as to have us panicking.

Looking at specific revenue streams, the cloud is going strong, with server business seeing five-percent growth, as is Office – especially with Office 365 generating big gains.

In terms of hardware, we’re looking at a story we’ve seen play out again and again in recent quarters: Surface tablet sales are doing great (here seeing a 61-percent uptick), while Windows smartphones are practically circling the drain (dropping a staggering 46 percent).

Given Microsoft’s clear prioritization of PCs, tablets, and laptops over smartphones, that situation shouldn’t be unexpected, but the juxtaposition is still a bit jarring; it’s odd to see such pronounced success adjacent to what’s hard to characterize as anything but a failure. We realize that Microsoft’s playing the long game here, building up the Windows 10 base, as well as dedicating resources to delivering software and services for competing mobile platforms, but this is still another sobering reminder of just how far Windows smartphones have dropped.

Stay tuned for further Pocketnow coverage of the rest of this quarter’s financial reports.

Source: Microsoft

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About The Author
Stephen Schenck
Stephen has been writing about electronics since 2008, which only serves to frustrate him that he waited so long to combine his love of gadgets and his degree in writing. In his spare time, he collects console and arcade game hardware, is a motorcycle enthusiast, and enjoys trapping blue crabs. Stephen's first mobile device was a 624 MHz Dell Axim X30, which he's convinced is still a viable platform. Stephen longs for a market where phones are sold independently of service, and bandwidth is cheap and plentiful; he's not holding his breath. In the meantime, he devours smartphone news and tries to sort out the juicy bits Read more about Stephen Schenck!