Microsoft revenues up on cloud & Office 365, slowed by phones & Surface

Posted:
in General Discussion
Apple rival Microsoft's revenues were up 13 percent year-over-year to $23.3 billion in the June quarter, with profits of $6.5 billion -- driven largely by its cloud and Office businesses however, as some hardware efforts struggled.

Microsoft's fifth-generation Surface Pro came too late in the quarter to help.
Microsoft's fifth-generation Surface Pro came too late in the quarter to help.


Revenues in Microsoft's "More Personal Computing" category dipped 2 percent to $8.9 billion, noted. The category covers Windows, hardware, Xbox, and search and advertising.

The fall was largely because of the Surface PC line, which itself slipped 2 percent. Up until the last two weeks the line was mostly stagnant, riding mainly on the Surface Book and 2015's Surface Pro 4. It's only then that Microsoft began shipping an updated Surface Pro, as well as the new Surface Laptop.

Phone revenues were effectively nil, as with the previous quarter. The global smartphone market is now largely split between Android devices and Apple's iPhone, and Microsoft has all but abandoned efforts to take ground. The company lists just five phones on its website, one of which runs the defunct Windows Phone 8.1.

Windows OEM sales were flat outside of the professional market, but still did better than the consumer PC industry, mostly because of a shift towards high-end systems.

Apple's Mac shipments fell 0.4 percent year-over-year in the June quarter. The company nevertheless rose a spot to fourth place in the PC market, claiming 6.9 percent of it. Windows PC makers HP, Lenovo, and Dell held the podium.
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Comments

  • Reply 1 of 34
    mubailimubaili Posts: 385member
    you should clearly indicate the Mac shipments is according to Gartner or IDG, it is not a fact yet. We are still waiting for the Apple earnings.
    netmagewatto_cobrajony0
  • Reply 2 of 34
    red oakred oak Posts: 628member
    $1.8 billion of their $6.5 billion in "profit" was from a massive tax write-off of their mobile business.  Almost one third of the reported "profit".  That is big thing to miss here

    Everyone is fawning over Microsoft.  It's PE is double Apple's

    Ridiculous
    caliandrewj5790watto_cobrabaconstang
  • Reply 3 of 34
    vonbrickvonbrick Posts: 58member
    sog35 said:
    Surface is such an overhyped BLAH product line
    Oops...you forgot something:

    <OPINION>Surface is such an overhyped BLAH product line</OPINION>

    There.  That's better.
    lmacsingularity
  • Reply 4 of 34
    red oak said:
    $1.8 billion of their $6.5 billion in "profit" was from a massive tax write-off of their mobile business.  Almost one third of the reported "profit".  That is big thing to miss here

    Everyone is fawning over Microsoft.  It's PE is double Apple's

    Ridiculous
    How does that work?  How is a 2 billion dollar write off translated into profits?
    williamlondon
  • Reply 5 of 34
    red oakred oak Posts: 628member
    red oak said:
    $1.8 billion of their $6.5 billion in "profit" was from a massive tax write-off of their mobile business.  Almost one third of the reported "profit".  That is big thing to miss here

    Everyone is fawning over Microsoft.  It's PE is double Apple's

    Ridiculous
    How does that work?  How is a 2 billion dollar write off translated into profits?
    It is a credit which reduced their tax payment 









    williamlondonMacsplosion
  • Reply 6 of 34
    applesauce007applesauce007 Posts: 1,576member
    vonbrick said:
    sog35 said:
    Surface is such an overhyped BLAH product line
    Oops...you forgot something:

    <OPINION>Surface is such an overhyped BLAH product line</OPINION>

    There.  That's better.
    Nope.  <FACT>Surface is such an overhyped BLAH product line</FACT>
    That's why it's not selling.

    Microsoft had plenty of time to build a tablet OS for ARM and they chose to take the easy way out in selling tablets with cooling fans.
    After iOS 11 is released, PC/Desktop sales will really start to decline and Microsot will become just a Cloud company.
    Time will tell.
    calitmaywatto_cobrawilliamlondonMacsplosionbaconstangargonaut
  • Reply 7 of 34
    lmaclmac Posts: 167member
    vonbrick said:
    sog35 said:
    Surface is such an overhyped BLAH product line
    Oops...you forgot something:

    <OPINION>Surface is such an overhyped BLAH product line</OPINION>

    There.  That's better.
    I think there's more computer innovation coming out of Microsoft right now than there is out of Apple. There's nothing Pro about the iPad Pro, and the touch-bar is not exactly a killer feature. I've used a Surface Pro 4 and it's a pretty good competitor to the MacBook Pro. I really like that it uses Mini Display Port for video out, so I can use my vast collection (HDMI, DVI, VGA) of Apple video dongles with it. The newly announced iMac Pro is just the same old iMac in space gray, with high end specs. Puh-lease. The actual Mac Pro and the Mini haven't seen an update in years, and I still prefer my MacBook Air to any recent Apple laptop with USB-C and the awful keyboards.
    williamlondonviclauyycbaconstangargonaut
  • Reply 8 of 34
    The 3 customers you see in the Microsoft store is all you need to know.
    andrewj5790randominternetpersonmacky the mackywatto_cobrawilliamlondonbaconstang
  • Reply 9 of 34
    lkrupplkrupp Posts: 6,608member
    So the Surface turns out not to be Microsoft’s breakthrough iPad and Mac killer after all? Well, Leo LaPorte uses his giant Surface Pro on MacBreak Weekly so there’s that.
    edited July 2017 tmaywatto_cobrawilliamlondonjony0
  • Reply 10 of 34
    BluntBlunt Posts: 220member
    lmac said:
    I think there's more computer innovation coming out of Microsoft right now than there is out of Apple. There's nothing Pro about the iPad Pro, and the touch-bar is not exactly a killer feature. I've used a Surface Pro 4 and it's a pretty good competitor to the MacBook Pro. I really like that it uses Mini Display Port for video out, so I can use my vast collection (HDMI, DVI, VGA) of Apple video dongles with it. The newly announced iMac Pro is just the same old iMac in space gray, with high end specs. Puh-lease. The actual Mac Pro and the Mini haven't seen an update in years, and I still prefer my MacBook Air to any recent Apple laptop with USB-C and the awful keyboards.
    There is nothing Pro about Windows.
    andrewj5790StrangeDayswatto_cobrawilliamlondon
  • Reply 11 of 34
    danvmdanvm Posts: 707member
    vonbrick said:
    sog35 said:
    Surface is such an overhyped BLAH product line
    Oops...you forgot something:

    <OPINION>Surface is such an overhyped BLAH product line</OPINION>

    There.  That's better.
    Nope.  <FACT>Surface is such an overhyped BLAH product line</FACT>
    That's why it's not selling.

    Maybe they not sell at iPad levels, but they are not that bad at all after only 4yrs in the market.  And even they took the customer satisfaction advantage from iPad's.  So I suppose they are doing something right. 

    Microsoft had plenty of time to build a tablet OS for ARM and they chose to take the easy way out in selling tablets with cooling fans.

    The Surface Pro m3 and i5 are fanless right now.  IMO, that's an achievement considering the size of the Surface Pro.  

    After iOS 11 is released, PC/Desktop sales will really start to decline and Microsot will become just a Cloud company.
    Time will tell.
    PCs sales are flat/down for years, same as iPads.  I don't see how iOS 11 will change that in the next years.
    williamlondonviclauyyc
  • Reply 12 of 34
    calicali Posts: 3,495member
    lmac said:
    vonbrick said:
    sog35 said:
    Surface is such an overhyped BLAH product line
    Oops...you forgot something:

    <OPINION>Surface is such an overhyped BLAH product line</OPINION>

    There.  That's better.
    I think there's more computer innovation coming out of Microsoft right now than there is out of Apple. There's nothing Pro about the iPad Pro, and the touch-bar is not exactly a killer feature. I've used a Surface Pro 4 and it's a pretty good competitor to the MacBook Pro. I really like that it uses Mini Display Port for video out, so I can use my vast collection (HDMI, DVI, VGA) of Apple video dongles with it. The newly announced iMac Pro is just the same old iMac in space gray, with high end specs. Puh-lease. The actual Mac Pro and the Mini haven't seen an update in years, and I still prefer my MacBook Air to any recent Apple laptop with USB-C and the awful keyboards.
    Right. An outdated OS pretending to be an iPad is so innovative.
    andrewj5790StrangeDayspscooter63watto_cobrawilliamlondonbaconstang
  • Reply 13 of 34
    lkrupplkrupp Posts: 6,608member
    lmac said:
    vonbrick said:
    sog35 said:
    Surface is such an overhyped BLAH product line
    Oops...you forgot something:

    <OPINION>Surface is such an overhyped BLAH product line</OPINION>

    There.  That's better.
    I think there's more computer innovation coming out of Microsoft right now than there is out of Apple. There's nothing Pro about the iPad Pro, and the touch-bar is not exactly a killer feature. I've used a Surface Pro 4 and it's a pretty good competitor to the MacBook Pro. I really like that it uses Mini Display Port for video out, so I can use my vast collection (HDMI, DVI, VGA) of Apple video dongles with it. The newly announced iMac Pro is just the same old iMac in space gray, with high end specs. Puh-lease. The actual Mac Pro and the Mini haven't seen an update in years, and I still prefer my MacBook Air to any recent Apple laptop with USB-C and the awful keyboards.
    Then buy one and ditch your Mac. If you don’t then your personal opinion is just so much blather. And you are parroting the tired old “Apple can’t innovate anymore” trollage. 
    andrewj5790BluntStrangeDayspscooter63watto_cobrawilliamlondonbaconstangRayz2016
  • Reply 14 of 34
    sog35 said:
    Surface is such an overhyped BLAH product line
    That's as maybe and is your opinion. I do know one hard fact and that is I fully intend to never ever spend even a bent penny with Microsoft again.

    watto_cobrabaconstang
  • Reply 15 of 34
    NY1822NY1822 Posts: 567member
    Remember MS stated more people were switching from macbook to surface than ever before...lol
    https://www.google.com/amp/s/www.theverge.com/platform/amp/2016/12/12/13919312/microsoft-surface-sales-mac-switch
    watto_cobrabaconstang
  • Reply 16 of 34
    StrangeDaysStrangeDays Posts: 6,508member
    vonbrick said:
    sog35 said:
    Surface is such an overhyped BLAH product line
    Oops...you forgot something:

    <OPINION>Surface is such an overhyped BLAH product line</OPINION>

    There.  That's better.
    this is a public forum, that goes without saying when stating a subjective opinion. 
    watto_cobrabaconstangRayz2016
  • Reply 17 of 34
    StrangeDaysStrangeDays Posts: 6,508member

    lmac said:
    vonbrick said:
    sog35 said:
    Surface is such an overhyped BLAH product line
    Oops...you forgot something:

    <OPINION>Surface is such an overhyped BLAH product line</OPINION>

    There.  That's better.
    I think there's more computer innovation coming out of Microsoft right now than there is out of Apple. There's nothing Pro about the iPad Pro, and the touch-bar is not exactly a killer feature. I've used a Surface Pro 4 and it's a pretty good competitor to the MacBook Pro. I really like that it uses Mini Display Port for video out, so I can use my vast collection (HDMI, DVI, VGA) of Apple video dongles with it. The newly announced iMac Pro is just the same old iMac in space gray, with high end specs. Puh-lease. The actual Mac Pro and the Mini haven't seen an update in years, and I still prefer my MacBook Air to any recent Apple laptop with USB-C and the awful keyboards.
    What nonsense. I know for a fact you don’t have an ipad pro, because if you did you’d know better. The new display is incredible – the 120 hertz screen blows anything else away. The auto color tone changing is awesome, the color gamut is awesome, the speed at which you can draw with the pencil, the speed with 3D apps... the thing smokes. 

    and youre honestly trying to claim the new iMac Pro is blah? Tell me, what makes a pro if not superior specs?

    and you want outdated legacy ports so you can use old dongles? that’s pro? troll on, brother. 


    edited July 2017 pscooter63macky the mackywatto_cobrawilliamlondonRayz2016
  • Reply 18 of 34
    vonbrick said:
    sog35 said:
    Surface is such an overhyped BLAH product line
    After iOS 11 is released, PC/Desktop sales will really start to decline and Microsot will become just a Cloud company.
    Time will tell.
    Please stop. Just stop. OK? 1. An iPad Pro, especially when adding in the cost of a keyboard, will still cost more than most Windows laptops. And for paying more, you will get a smaller screen, no real mouse/trackpad support, no multiple display support and no real support for external/expandable storage, even so much as a thumb drive. 2. Let us say that Apple were to come out with iOS devices with feature/form factor/price compatibility with Windows PCs. Guess what? IT STILL RUNS iOS WHICH IS A MOBILE OPERATING SYSTEM. So you expect professionals to do real work on a mobile OS? Tell you what ... go do it yourself before you expect anyone else to do it. That's right. You go replace your MacBook Pro with an iPad as your primary home and work computing device. You wouldn't, would you? Of course not. So why on earth would you expect a Windows users to do so? Because you hate Windows, I get it. But despite your hatred, Windows is - and has been for like 30 years - a full blown consumer and professional OS that supports any task that you need a computer for, including any task that macOS - and the previous operating systems that powered Apple's hardware during the Windows run - can do for 99.9999% of users. Don't throw daggers and darts at me ... I know that there are some things that Macs can do that Windows machines cannot. But here's the deal: those are tasks that only a tiny slice of the world's billions of PC users do or need. And that slice has Macs already. Windows has a 91% market share. (That's usage as measured by % of PCs that access the web, not sales/shipments figures). All those people aren't going to hobble their productivity by replacing full blown machines - WHICH RUN THE SAME INTEL CPUS THAT YOU USE IN YOUR MACBOOKS - and operating systems that can run full blown applications and not just mobile apps just because you hate Windows. The people who keep insisting "an iPad can replace a Windows computer" prattle that nonsense simply because they have a low opinion of Windows and the people who use it. Get those people to admit that Windows PCs are used in pretty much the same way as Macs are and that nonsense will stop. All these people are going to replace their 1 TB storage Windows machines with iPads that have 64 GB of storage and don't even support thumb drives, let alone external hard drives. (It would be somewhat sensible if iOS was designed to be primarily a cloud OS like Chromebooks and Linux Cloudbook distros but they aren't. Instead, iOS is far behind operating systems created around cloud/web devices.) You go first and replace your MacBook with an iPad at your job before you force some poor accountant or business analyst to spend 8 (really 10-11) hours a day fiddling around with his 12' screen and detachable keyboard. Yes, I have seen those cool Apple promotional spots that show how great iPad Pros are for video editing and all that. But notice that you don't see them crunching numbers on some massive Excel spreadsheet do you? Or anything else that most workers actually use those horrible Windows computers that you hate so much for all day to do real work on? Of course not. Why not? Because the iPad can't handle it. Not enough device storage to hold the documents, software and data that people need for their work, and not enough RAM/CPU power to do real tasks. So iOS 11 will do the UX/UI portion of multi-tasking much better. Big deal: Chromebooks do a great job at that too. (Seriously. Try one out sometime, like at your local public school or something.) But running a spreadsheet, database and presentation at the same time while having 10 tabs open in your browser in the background? Forget it. No mobile OS can handle it, and none will be able to for the foreseeable future.
    williamlondon
  • Reply 19 of 34
    viclauyycviclauyyc Posts: 324member
    red oak said:
    red oak said:
    $1.8 billion of their $6.5 billion in "profit" was from a massive tax write-off of their mobile business.  Almost one third of the reported "profit".  That is big thing to miss here

    Everyone is fawning over Microsoft.  It's PE is double Apple's

    Ridiculous
    How does that work?  How is a 2 billion dollar write off translated into profits?
    It is a credit which reduced their tax payment 









    Can a mom and pop store do the same thing?
  • Reply 20 of 34
    quadra 610quadra 610 Posts: 6,741member
    The Surface line has been near-tractionless since introduction, if not compeletely tractionless relative to its competition. These frankentablets sell nowhere near iPad levels and barely crack the million units mark - that's actually *fewer* than Macs. That's right... MS' barnstormer answer to the iPad (or whatever their positioning was... try figuring *that* one out) can't even come close to beating a bad Mac quarter. And it isn't like the Surface line offers an exclusively special experience relative to the competition. You get Windows shoehorned into a tablet, without the best of both worlds. 

    That high satisfaction rating that is the only metric really going for it? I remember Windows Phone got one too, years ago. Sometimes it's an aberration. 

    Surface has been a failure. It's another MS abortion that they'll hang on to like grim death until there's nothing left. Like old underwear. 

    And that AIO line that they released last year? Whatever happened to it? Buzz for maybe a week or two and then forgotten. That's Microsoft for ya. Since forever.
    edited July 2017
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