Microsoft denotes the second quarter of its 2019 money results these days, reportage revenue of $32.5 billion and profit of $8.4 billion. Surface and play ar each up, however revenue from Windows licenses has slipped.

While Surface revenue solely grew one p.c within the same quarter last year, it’s jumped by a colossal thirty-nine p.c this year to $1.86 billion. the massive jump isn’t entirely shocking, as Microsoft free its Surface professional vi and Surface portable computer two throughout the foremost recent quarter, aboard the new Surface Studio two and Surface Headphones. it absolutely was a busy vacation amount for Surface, and also the revenue reflects that.

Surface Book two and Surface Go sales pushed Surface revenue to $1.1 billion within the previous quarter, therefore it’s clear demand has continued across these new Surface devices. It means that Surface is currently nearly a $2 billion business for Microsoft.


64 MILLION folks USED XBOX know the vacation QUARTER

Microsoft’s play business has been a recent highlight of the company’s earnings, and financial Q2 2019 isn’t any totally different. play revenue is up eight p.c this quarter, though Xbox hardware revenue has born by nineteen p.c primarily because of the Xbox One X launch within the same quarter a year past. Xbox Live active users conjointly hit sixty-four million throughout the vacations, up eight p.c from the previous year.

We’re still waiting to listen to a lot of concerning Microsoft’s xCloud game streaming service, and also the company is because of beginning public trials this year. It’s all a part of Microsoft’s decided to produce its own Netflix for games, however, it’ll face competition from Google, Nvidia, Sony, and even presumably Amazon within the future. On a decision with investors, Microsoft chief operating officer Satya Nadella discovered that xCloud “will be public trials later this year,” hinting that we tend to won’t see the service before long.


Cloud play may become a key piece of ground for Microsoft and alternative technical school firms, and also the code maker is already a step previous some rivals because of its cloud dominance. Microsoft’s Azure revenue has mature seventy-six p.c this quarter. Server merchandise and cloud services generally have conjointly mature by twenty-eight p.c. the whole “intelligent cloud” division has currently accumulated by twenty-four p.c, marking $8.6 billion of Microsoft’s overall $29.1 billion revenue this quarter.

Over on the Windows facet, OEM professional revenue is down five p.c this quarter, that Microsoft says is roughly in line with laptop sales to businesses. Non-Pro revenue has decreased by eleven p.c, and Microsoft blames this on “continued pressure within the entry-level class.” In alternative words: Chromebooks. Microsoft simply undraped its latest Chromebook challenge to attractiveness to students and colleges, in an attempt to stave off Google’s hardware for 2019. It’s clear that entry-level valuation and devices are threatening Windows licensing revenue as customers have many various selections for devices. On the associate capitalist decision, Microsoft CFO Amy Hood discovered that a number of the decline was because of the temporal order of latest chips from partners limiting OEMs and new devices.

As always, Microsoft’s future growth appearance more and more obsessed with its cloud success. Azure revenue is up seventy-six p.c year over year and workplace industrial merchandise and cloud services grew eleven p.c. Microsoft conjointly currently has thirty-three .3 million workplaces three65 shopper subscribers, up from 29.2 million now last year. LinkedIn, Microsoft’s $26 billion bet, is additionally seeing solid revenue growth of twenty-nine p.c. By