Microsoft’s Hardware Sales Increase But Net Income Falls

Microsoft has announced its quarterly sales for Q2 of its 2015 financial year. Hardware sales from the Phone Division (read: Nokia) and Surface were on the rise.

Sales of the former domain rose by 28% over the last year to reach 10.5 million units, up from 8.2 million. It did spend $243 million on integration and restructuring expenses following the Nokia buyout.

Surface sales increased by 24% following the positive critical and consumer reaction of Surface 3, catapulting the revenues to $1.1 billion. The Xbox division saw combined sales of 6.6 million for the 360 and One, while the Office 365 subscribers bloated to 9.2 million up from 3.5 million last year.

Another positive note were the cloud products and server divisions, which saw a rise of 116% and 9% respectively.

The Windows revenue from OEM however did drop by 13%, quite a figure. Microsoft blames this on the business market and cheaper licensing for the academic sector.

On the whole, the company got $26.5 billion in revenue, an 8 percent increase but made just $5.6 billion in revenue out of it, a 10 percent drop. Obviously the restructuring did play a part in this outlook. Commercial revenue increased by 5%.

“Microsoft is continuing to transform, executing against our strategic priorities and extending our cloud leadership. We are taking bold steps forward across our business, and specifically with Windows 10, to deliver new experiences, new categories, and new opportunities to our customers.” Satya Nadella, CEO Microsoft.

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