Tablets and smartphones hand Microsoft decent turnover growth

Turnover up 8 %

In October-December 2014, Microsoft managed a 26.47 billion dollar (some 23.5 billion euro) turnover, up 8 % compared to last year. Software licenses (Windows, Office) still generate the bulk of the turnover of its turnover, but the most remarkable growth comes from its cloud services (+ 114 %).

Its “consumer electronics” division takes up an increasingly larger share of its turnover: Surface Pro 3 tablet sales grew 24 % to 1.1 billion dollars, while the Lumia smartphones (former Nokia) grew 25 % to 10.5 million, resulting in 2.3 billion dollars. Another 6.6 million Xbox consoles also helped generate nearly 4 billion dollars.

Profit down 10 %

Despite the turnover growth, its net profit dropped 10 % to 5.9 billion dollars (nearly 5.2 billion euro). Nokia’s phone division acquisition, the subsequent restructuring and – quite importantly – the lost license fee because of Nokia’s OS, were the main reason for the drop in net profit. 

It seems that CEO Satya Nadella, who has been in charge for almost a year, has managed to get Microsoft back on track. In November 2014, Microsoft managed to push oil giant Exxon Mobil down to third on the list of most valuable companies in the world. Only one other company is worth more according to the stock exchange: Apple, that other American electronics giant.