Microsoft announced its holiday quarter results and they were strong — except for the mobile division.
The cloud division, which includes Azure, grew revenue by 5% to $6.3 billion (£4.3 billion) and the company managed to see a smaller decline in its revenue from Windows sales than Wall Street expected.
Surface, made up of the tablet line, grew revenue by 29% to $1.4 billion (£970 million), while the mobile division, which is predominantly Lumia phones, shrank by nearly 50%.
Windows phones have not been selling well and Microsoft is now seeing a decline in both its smartphone business — which had sales of 4.5 million — and its “dumb” phone business.
As The Verge notes, Microsoft’s mobile business is all-but dead. No amount of new hardware can save the operating system which, according to some estimates, has around 1.7% of the global market.
Benedict Evans, a partner at VC firm Andreessen Horowitz, made a chart that shows all sales of Windows Phones over time and it shows just how brutally the business has failed.
According to Evans, over 4.5 billion iOS and Android have been sold in the same period of time, making Microsoft’s business look even worse.
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