MICROSOFT NEEDS TO KICK a few sales folks in the posterior as its PC business remained stagnant in the second quarter despite the launch of three new Surface models last year.
Redmond's latest quarterly earnings showed that the Surface lineup raked in $1.3bn over the so-called holiday shopping quarter.
While we'd be quite happy with that sum and would no doubt use it for creating a Bond villain-style luxury home, it's not good news for Microsoft.
This figure is pretty much the same as 2016, which isn't exactly stellar given Redmond had new devices - including the Surface Book 2, new Surface Pro, and Surface Laptop - on offer during the three months ending December.
Apparently, more expensive models, such as the Surface Book 2, saw decent sales. Probably because both models of the machine offer powerful innards in a unique 2-in-1 design, that appeals to creative types sick of prodding at MacBook Pro Touch Bars.
But sales of other Surface sales didn't yield impressive results for the Seattle outfit.
Things looked rosier elsewhere for the company, in particular, Microsoft's cloud services - which includes Azure cloud and Office 365 - which raked in plenty of cash for the company.
Office 365 saw 12 per cent and a 10 per cent bumps in for consumer and commercial use, respectively, while an 18 per cent year-on-year per hike in server and cloud services is even better. But a massive 98 per cent jump in Azure revenues, well, that's the gravy train right there.
Thanks to this cloud sales surge, Microsoft generated an overall second-quarter revenue of $28.9bn with a net of $7.5bn, a 12 per cent year-on-year increase.
Like all such financial results, chief executive Satya Nadella spouted some vague stuff about the typical areas of the industry all big tech firms are looking into.
"This quarter's results speak to the differentiated value we are delivering to customers across our productivity solutions and as the hybrid cloud provider of choice," said Nadella. "Our investments in IoT, data, and AI services across cloud and the edge position us to further accelerate growth."
One surprising result is the eight per cent hike in Microsoft's gaming revenue, seemingly being attributed to sales of the Xbox One X which helped drive a 14 per cent increase in Xbox hardware revenue, despite grumblings in the tech and gaming world that the powerful console doesn't really have a spot to fill.
So overall, Redmond is doing pretty well, but needs to give the Surface line up a little kick; perhaps Microsoft could finally debut a Surface phone... µ
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