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Windows Consumer Sales Tank Win Phone Revenue Down 71%

Microsoft has reported a 6.3% decline in Personal Computing revenues, Windows Phone sales fell 71%

The poor result comes as the Company still refuses to declare sales for Xbox, on the bright side sales of their Surface tablet grew 9% despite problems with the Surface touch screen and active mouse.

Microsoft is hoping to bolster Xbox sales with the release on August 2nd of their new 2TB Xbox One S Microsoft said that all pre-orders will start shipping in early August.

Overall annual revenue fell at Microsoft for the first time since 2009, as the Companies tries to shift their business model from the decline personal computer market and server software sales to cloud computing.

Total sales were US$85.32 billion in total annual revenue, down 8.8% from fiscal 2015.

Sales have dwindled as the company’s flagship operating system, Windows, continues to post sluggish growth. For the year, revenue from the More Personal Computing segment, which includes Windows, fell 6.3% for the year to $40.46 billion.

For the fourth quarter, More Personal Computing segment sales fell 4% to $8.9 billion, or a 2% decline in constant currency. Revenue from computer makers rose 11%.

Microsoft is betting its future on cloud sales and, in that business, the company reported big gains. The company’s Intelligent Cloud segment, which includes its Azure on-demand computing services, rose 6.6% to $6.71 billion. The company said revenue was hurt by currency by about 3%.

The Productivity and Business Processes segment, which includes Microsoft’s Office franchise as well as its Dynamics business products, posted a sales gain of 4.6% to $6.97 billion. The unfavourable currency impact for that segment was about 3%.

Microsoft said last week that it won’t hit its target of one billion Windows 10 devices in use by June 2018, blaming it on the company’s pullback from making smartphones that would have run Windows 10. The company said last month that more than 350 million devices ran the operating system.

All $ are US.

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