Cloud Provides Q3 Boost For Microsoft, Surface Revenue Down
As reported by Reuters, Microsoft’s shares rose by as much as 9.8 per cent in after-hours trading, reaching their highest level since March 2000.
Microsoft reported revenue for the quarter of US$20.4 billion (around $28.2 billion), with net income coming in at US$4.6 billion.
Microsoft’s cloud business was a standout segment for the tech giant, with revenue totalling US$5.9 billion, up 8 per cent year-on-year, with Microsoft attributing the rise to higher revenue from server products and services, including Azure.
Meanwhile, Surface revenue was down US$236 million year-on-year, a decline of 26 per cent, which Microsoft stated was primarily driven by the release of the Surface Pro 3 in June last year.
Microsoft will be looking to its Surface Book and Surface Pro 4, unveiled earlier in the month along with two new Lumia smartphones, to deliver a boost to its computing business.
Meanwhile, Windows OEM revenue declined 6 per cent, which comes in the context of Gartner earlier in the month reporting a 7.7 per cent decline in worldwide PC shipments.“We are making strong progress across each
of our three ambitions by delivering innovation people love,” Microsoft
chief executive officer Satya Nadella stated upon announcement of the
“Customer excitement for new devices, Windows 10,