Record Lumia and Surface Sales Drive $26.5bn Quarterly Revenues for Microsoft

By Alex Spencer

Microsoft Surface

Microsoft has reported revenues of $26.5bn (£17.5bn) and operating profits of $7.8bn for Q2 2014 (the three months ended 31 December 2014).

Search advertising revenues grew 23 per cent, with Bing gaining a 19.7 per cent market share in the US, but the highlight of the results was Microsoft’s hardware division.

The company sold a record number of its Surface tablets, bringing in revenues of $1.1bn, up 24 per cent on last year. This is driven by the Surface Pro 3, introduced in June last year as a more portable alternative to a laptop, which is selling three times as many units as its predecessor, the Surface Pro 2.

Lumia smartphones achieved a record 10.5m sales during the quarter, up 30 per cent year-on-year, a growth which Microsoft attributes to consumer interest in affordable entry-level smartphones. Despite a further 39m sales for Microsoft’s non-Lumia handsets, however, revenues from its phone hardware segment were down 12.5 per cent quarter-on-quarter, to $2.3bn.

“Microsoft is continuing to transform, executing against our strategic priorities and extending our cloud leadership,” said Microsoft CEO Satya Nadella. “We are taking bold steps forward across our business, and specifically with Windows 10, to deliver new experiences, new categories, and …read more

Source:: Mobile App News