Microsoft’s Phone Hardware Revenue Drops While ‘Microsoft Azure’ Witnesses Constant Spike In Earnings

Microsoft’s Phone Hardware Revenue Drops While ‘Microsoft Azure’ Witnesses Constant Spike In Earnings
Microsoft Lumia 640 XL Maurizio Pesce / Flickr CC BY 2.0
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Microsoft seems to be going nowhere with its phones. But luckily “Microsoft Azure,” the company’s cloud computing platform and service, has been doing a great job. It is also bringing in profits for the company.


When the financial quarterly results of the company were put forth, the stats brought both the good as well as bad news for the company.  The statistics show that while Microsoft Azure’s revenue has grown 135 percent, phone hardware has seen a constant drop every year by 58 percent.

With the latest Lumia phones, we have also observed that Microsoft is not diving straight into the smartphone market but is taking one step at a time. It is instead shifting its focus on building similar gadgets which would have the potential to stand strongly in the market along with other competitors. Surface Pro 4 and Surface Book are the best examples. Microsoft is the leader in computing. The company has already gotten rid of 78,000 employees, though, the majority of which belongs to the phone hardware division.

Microsoft’s latest operating system Windows 10 has over 50 million users, while Office 365 Commercial has 60 million monthly active users. On the other hand, Microsoft Azure registers a number of 18 million subscribers. Even though the cloud service is doing well, there are other giants competing in the same domain with Microsoft, and they are none other than Amazon and Google.

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As Microsoft is still the leader in computing, the company should not shift its focus and run behind something that has been a constant failure. There’s also Nextbit’s Robin, the first Android phone based on cloud computing that knows which direction smartphones will go in the coming years. Microsoft, being the leader, can then offer the world the best phones with cloud service.