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Microsoft is in a delicate situation right now where its main revenue driver since the beginning is quickly becoming irrelevant in an increasingly mobile-centric world. However, its prospects in nearly every other venture are booming. Its performance is particularly positive with regards to its Surface devices and its Cloud services.
Since 1985, Microsoft Windows has been the gold standard when it comes to computer productivity, which made it popular among businesses and home users. With the advent of smartphones and the popularity of the MacBook from Apple, the company that Bill Gates started has had to give a lot of ground, Business Insider reports.
Soon, Microsoft is set to unveil yet another Surface offering, which is aimed at beating Apple’s own notebook device. Based on its most recent quarterly earnings report, things certainly seem to be on the up and up in terms of hardware revenue. Windows performed strongly as well, but overall, profits from the OS have stayed relatively flat.
It seems Microsoft itself realizes this, which is why it’s pushing hard to sell its Surface family of gadgets and why it’s also throwing a lot of weight at its cloud computing services like Azure. By all accounts, the company has succeeded.
According to its latest earnings report, Microsoft made $20.5 billion while the net income stood at $4.7 billion, The Verge reports. Much of the strong performance is being attributed to the phenomenal revenue generated by both MS Office and the company’s Cloud offering.
In terms of hardware sales, the Surface line enjoyed a good spot by raking in $926 million during the quarter. Compared to the same quarter in 2015, revenue jumped by a full 38 percent. It’s still no match for Apple’s MacBook and iPad Pro, but it didn’t need to be.
According to Forbes, Microsoft’s goal for the Surface family right now is to establish the lineup as a serious contender in the hardware market. This means gathering a loyal following, proving that Windows 10 is the best OS in the industry, and generally have a brand that users can get on board.
