MICROSOFT HAS BLAMED an ongoing shortage of Intel processor chips for a dip in its revenue from OEMs who preinstall Windows on their devices.
Windows licensing revenues fell five per cent in Q2 2019, with the bulk coming from Home versions of Windows at 11 per cent. Professional versions dropped just two per cent.
Microsoft has acknowledged that not only have they taken the hit this quarter, but it's also likely to extend at least into the next one, with Intel saying that its supply problems will be fixed by the summer, after focusing on server chips before their less powerful chips for individuals and offices were ready to fab at the new 10nm standard that we've been waiting so patiently for.
The quarterly figures, which are fully viewable here, actually show revenue up 12 per cent to $32.5bn, with operating income up 18 per cent to $10.3bn.
As previously, the big payday continues to stem from cloud services like Azure, which continue to prove extremely popular with enterprise clients.
Office commercial products and cloud services were up 11 per cent, compared with just one per cent for the consumer equivalent.
LinkedIn has shown strong growth, with a 29 per cent increase in revenue from people who want to see random strangers contacting them to talk about irrelevant and usually dull things.
Dynamics also saw growth of 17 per cent, with a whopping 51 per cent growth in Dynamics 365 uptake.
"Our strong commercial cloud results reflect our deep and growing partnerships with leading companies in every industry including retail, financial services, and healthcare," said Satya Nadella, CEO of Microsoft. "We are delivering differentiated value across the cloud and edge as we work to earn customer trust every day."
It wasn't all bad news for hardware. Although third-party revenue is down, the Surface range continues to grow with a 39 per cent increase in revenue from their flagship hardware.
It should be noted that Microsoft also shows growth figures that have been adjusted slightly to reflect global exchange rates, but we've gone with the originals here. There's only a few per cent either way. μ
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