Microsoft’s revenue from Windows grows significantly due to the end of Windows 7 support
Microsoft has achieved significant revenue growth with Windows in the past quarter. According to the company, this is due to the growth in the PC market, but also due to the demand for Windows 10 now that support for Windows 7 has ended.
Operating system sales in the quarter were 18 percent higher than a year earlier. In the Pro segment, it was 26 percent, and Microsoft attributes that to “healthy demand for Windows 10” as an upgrade to Windows 7. In the non-Pro segment, revenue growth for Windows products was 4 percent higher than in the same quarter. a year earlier.
Microsoft stopped supporting Windows 7 in mid-January. As a result, the operating system no longer receives security updates. Companies can pay for extra support to still get updates.
Microsoft classifies Windows as part of its More Personal Computing division, which also includes Surface, Xbox and Bing ads. The division had revenues of $13.2 billion in the quarter, up 2 percent from a year earlier. Windows revenue growth is not reflected in the division’s figures, partly due to an 11 percent decrease in revenue from Xbox sales, and associated games and services. That drop is not unexpected, as current consoles are nearing the end of their lifecycle. Microsoft expects the decline to continue into the next quarter.
In the past quarter, Microsoft achieved sales of $1.98 billion from the shipments of Surface devices. That is an increase of 6 percent compared to a year earlier. In recent months, Microsoft released its Surface Pro X and the Surface Laptop 3.
The strongest growth was again achieved by Microsoft with its Intelligent Cloud division, which includes Azure, server products and enterprise services. Quarterly revenue was $11.9 billion, up 27 percent from a year ago. Turnover also grew at the Productivity and Business Processes business unit, which includes Office and LinkedIn. This segment achieved quarterly revenue of $11.8 billion, a growth of 17 percent.
Microsoft achieved revenue of $36.9 billion in the quarter, 14 percent more than in the comparable period last year. Net profit came in at $11.6 billion, an increase of 38 percent.