Microsoft’s Q3 financials show continued PC market slump

Brittany A. Roston - Apr 24, 2015, 1:58 pm CDT
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Microsoft’s Q3 financials show continued PC market slump

Microsoft‘s third-quarter 2015 financial report is in, and overall it shows good things for the company. Not all was stars and sunshine, however, and it suffered in the same area many of it competitors have been feeling the squeeze: PCs. The PC market has been in a slump for a while now, suffering from the proliferation of mobile devices and a consumer trend away from traditional computers, and no exception was made for Microsoft, which saw its Windows revenue decline sharply.

Microsoft announced the figures on Thursday, which represent the quarter that ended on March 31. The overall revenues grew during that period, reaching $21.7 billion (representing a 6-percent year-on-year increase). Looking at the year-on-year numbers, gross margin increased only 1-percent while operating income is down 5-percent. The strengthening of the USD is said to have had a “significant impact” on the quarterly results.

While the Devices and Consumer division revenue grew overall last quarter, an increase of 8-percent accounting for the currency fluctuations, Microsoft saw Windows OEM Pro and non-Pro revenues both decline. The Windows OEM Pro revenue dropped year-on-year by 19-percent, something largely attributed to the decline in the PC business market, while the non-Pro revenue dropped 26-percent. Windows volume licensing and Office Commercial products and services also saw small revenue declines.

Microsoft saw good things with its Surface revenue, however, which hit $713 million to the tune of a 44-percent increase. The Surface Pro 3 is said to have driven this revenue growth. In other areas, the company also saw commercial revenue growth, which jumped 5-percent to $12.8 billion.

SOURCE: Microsoft


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