Microsoft’s quarterly profit rises despite declining hardware and Windows sales

Microsoft has announced its quarterly results. The company made 7 percent more profit last quarter, although it recorded 30 percent less revenue from hardware such as Xbox consoles. Revenue from the sale of Windows licenses also fell.

Microsoft pivoted last quarter total revenue of $52.9 billion, which is 7 percent more than the same period in 2022. Net profit increased by 9 percent to $18.3 billion. This higher turnover and profit is mainly due to Microsoft’s cloud activities, Office subscriptions and server divisions.

Server products and cloud services generated 17 percent more revenue, with Azure revenue 27 percent higher than in the first quarter of last year. The number of consumers with a Microsoft 365 subscription, which includes Office software and OneDrive cloud storage, rose to 65.4 million. A quarter ago, there were 63.2 million private Microsoft 365 subscribers.

Microsoft recorded lower sales in PCs and hardware. Sales of Windows OEM licenses to PC and laptop manufacturers also fell 28 percent. Several market analysts, including IDC and Canalys, recently reported that demand for PCs and laptops has fallen by 30 percent compared to last year.

The tech giant also achieved 30 percent less turnover from the sale of hardware, which also includes Xbox consoles. According to The Verge this is the lowest quarterly turnover from the Xbox Series