Microsoft’s Q3 2016: Surface Device Revenue Surges; Windows Phone Declines


Microsoft has earned $3.8 billion net income on $20.5 billion revenue, as per Q3 fiscal 2016 earnings report. When compared to last year, both revenue and profit took a hit, but company’s services and cloud products continue to surge revenue. However, Wall Street investors are not looking for the earnings and many are expecting to see the company’s stock surge just as its 1999 record.

The quarter has seen Surface-related revenue up to $1.1 billion, which is a 61-percent increase from the same period last year. This was due to the Surface Pro 4 and Surface Book sales increase. As always, Microsoft is privy to the number of devices that sold. However, the company has revealed that Lumia device has sold about 2.3 million in Q3, which is a massive drop of 73 percent as compared to the 8.6 million during last year at the same period. This has resulted in a decline in Microsoft’s revenue from phones, and it is rated to be 46 percent,  as per Microsoft’s Press release.

Also Read: Microsoft Surface Pro 5 Release Delayed; Windows 10 Update to be Rolled out in June

Over the past few years, Microsoft has been seeing not a good time with Windows. However, there’s a cue that it’s not all doom and gloom for PCs this time. Although revenue of Windows declined by 2 percent, but it outwitted the rest of the PC market, notes The Verge.

The company reasons that it was due to a “higher consumer premium device mix.” Thus, it makes clear that the push from OEMs is starting to help at the high-end.

Also Read: Microsoft Unleashes Preview Tool to Convert Win32 Apps

By now it is well-known that Microsoft earnings are from its cloud storages services. This quarter, cloud services and Office commercial grew by 7 percent due to Office 365. There has been 6 percent increase in consumer versions of Office. Now, the Redmond-based company enjoys 22.2 millions of consumers by Office 365 subscriptions

A 5-percent surge in revenue is found in Server products and cloud services while Azure revenue increased by 120 percent.

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