In that year Microsoft sold 10.5 million smartphones, last year that dropped to 4.5 million.
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Here’s an interesting stat: Microsoft’s Bing and its Surface lineup contributed more than $2.3 billion of revenue for the company during its second quarter.
For the quarter ended December 31, Microsoft reported adjusted earnings per share of 78 cents on revenue of $25.69 billion.
“Businesses everywhere are using the Microsoft Cloud as their digital platform to drive their ambitious transformation agendas”, said Satya Nadella, chief executive officer at Microsoft. Office 365 subscribers grew to 20.6 million, and Windows 10 is now on more than 200 million devices.
However, revenue in productivity and business processes declined 2 percent to $6.7 billion and revenue in personal computing declined 5 percent to $12.7 billion.
Overall though, Microsoft’s revenue declined by 10 percent year-over-year to just $23.8 billion for the quarter, which makes it all the more important that the company to sustain its cloud growth. On a constant-currency basis, revenue grew 11 per cent in the fiscal second quarter but slowed from the 14 per cent growth it posted in the first quarter.
Surface revenues increased 29 percent in constant currency. It now breaks down earnings into three distinct business units focused on productivity services, cloud, and Windows/devices.
The company’s traditional PC sales business continues to lose business, alongside phone revenue, which has similarly fallen with the revenue stream declining 49%. The company saw revenue figures of $25.7 billion, surpassing our estimate of $25.111 billion.
Revenue from Office 365, which increased almost 70% year over year, accounted for the constant-currency revenue growth in this division.
Microsoft did not offer guidance in its press release, but said that it would provide guidance during its conference call later this afternoon.
On the flip side, Microsoft’s phone division is tanking.
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Microsoft’s commercial cloud annualized run rate now exceeds $9.4 billion. Conversely Windows Phone revenue dived dramatically, it was cut in half in constant currency, apparently following Microsoft’s cunning plans and “reflecting our strategy change announced in July 2015”.
