A few hours ago, Microsoft released the quarterly earnings report for its 2018 fiscal year. Microsoft’s Surface and Windows all saw growth whereas Windows Phone remained immaterial for the Redstone giant. On the other hand, cloud service Azure revenue grew 90%. Microsoft is, of course, making a lot of money from its cloud business and this time the consumer products saw growth as well.
Due to phones expenses and as well as lower gaming marketing, operating expenses declined by 1% while operating income is on the rise and grew by 26%. Microsoft Surface revenue had been declining but now things have finally changed as Surface revenue grew by 12%. On the other hand, Xbox services grew by 21% and even the overall gaming revenue slightly increased by 1%.
And finally, Microsoft also mentioned about Windows Phone revenue. Microsoft has once again called the Windows Phone revenue ‘immaterial’ and revealed that it declined by $315 million. Microsoft hasn’t confirmed whether it will continue with the mobile business, however, it is likely that they will continue to sell the Lumia devices until mid-or-late 2018.
The new earnings report has once again proved that Microsoft CEO Satya Nadella is doing a great job despite he is not focusing on the consumer. Although, if Microsoft hadn’t given up on mobile, the situation could have been much better for the Redmond giant.
