Microsoft Beats Expectations And Closes Off 2016 With a Bang
Gloomy predictions to the contrary, Microsoft announced that they made a tidy profit over the last three months of 2016, ending the year with a bang. The Redmond-based company’s revenue over October, November and December totaled $26.1 billion, of which $6.5 billion was profit and netting shareholders earnings per share of $0.83, once again proving the company is a deserved member of the blue chip segment of the market.
At the start of the quarter, some analysts had predicted that between the acquisition of LinkedIn and the disappointing adoption figures for Windows 10, Microsoft would not be the big earner many expected it to be. Though LinkedIn ended up reporting a loss of around $100 million, Windows 10’s number were up across the board as more and more people started making use of the new OS. Though much of this income is related to enterprise adoptions, home use is also bringing in more money ever since the free Win 10 upgrade was discontinued.
Another big cash cow are of course the business applications that tie into Windows 10, each of which carry hefty licensing fees. Microsoft Office and Office 365 together brought in around $7.4 billion, showing that these suites will remain the flagship for years to come. The only real disappointment was revenue from phones, which dipped as much as 81 percent, likely prompting Microsoft to expedite the planned spin-off of that entire segment of the company.
Currently, besides holding on to enterprise clients, the company is also setting its sights on controlling even more of the gaming market than it does now with the Xbox. Windows 10’s newly released Game Mode, which was unveiled a few days ago, should have gamers flocking toward Windows 10 thanks to cross-platform support with the Xbox as well as some excellent improvements on its own. If this pans out as hoped, the future looks like it may be coming up Microsoft every step of the way.
Fergus has been tinkering with computers since he was a kid and likes to put a stop to parties by listing the specs of all the digital devices in the room. It's best not to let him near your computer since he'll take it apart and may not put it back together again before he leaves.