Microsoft has seen its revenue and net income slide in the 2016 third quarter amid a mixed bag of results, reflecting the ongoing struggle of the PC market and the growth of the cloud market, while phone revenue dived and Surface revenue climbed.
Microsoft posted revenue of US$20.53 billion (around $26.44 billion) for the quarter, down from US$21.73 billion year-on-year, with net income of US$3.76 billion down from US$4.99 billion.
Looking at the individual business segments, Microsoft’s More Personal Computing segment made up the lion’s share of revenue with US$9.5 billion, growing 1 per cent (up 3 per cent in constant currency).
Windows OEM revenue declined 2 per cent in constant currency, which Microsoft noted outperformed the PC market.
Gartner and the International Data Corporation both recorded steep declines in the global PC market in the 2016 first quarter.
Phone revenue slid 46 per cent in constant currency, while Surface revenue increased 61 per cent in constant currency, which Microsoft stated was driven by the Surface Pro 4 and Surface Book.
Microsoft states that Windows 10 is now active on over 270 million devices.
Revenue in Microsoft’s Intelligent Cloud segment, meanwhile, grew 3 per cent (up 8 per cent in constant currency) to US$6.1 billion, with Microsoft stating Azure revenue grew 120 per cent in constant currency.
Revenue in the Productivity and Business Processes segment grew 1 per cent (up 6 per cent in constant currency) to US$6.5 billion.
Office commercial products and cloud services revenue grew 7 per cent in constant currency and Office consumer products and cloud services revenue was up 6 per cent.
