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Microsoft reports decline in Surface and phone revenue


Microsoft’s Q3 FY2017 shows mixed results

The company has published its financial results for the first quarter of the year, covering Q3 2017. For the quarter ending March 31, Microsoft had a net income of $5.7 billion non-GAAP and revenue of $23.6 billion, resulting in $0.73 earnings per share.

Microsoft’s Surface revenue declined by 26% after the increased competition on the 2-in-1 market and without new Surface devices for quite a while. Surface Book and Pro 4 were announced 18 months ago, and Microsoft should release their successors in 2017 to boost the sales.

It’s no surprising that the phone revenue declined again, this time to just $5 million for the entire quarter ending March. Although Microsoft seems to be committed to Windows 10 Mobile and rolls out regular monthly and Insider builds, the company has not launched new mobile devices for over a year now.

Microsoft is planning another update for Windows 10 Mobile in late 2017, but Redstone 3 could be the last ever update for the smartphones we currently have. After Redstone 3, Microsoft may only update a single OS – Windows 10 OneCore with Composable shell (CSHELL). Windows 10 on ARM will be happening in Q4 2017 with the first laptops and tablets based on Qualcomm processors. Sometime in 2018 we should see the first cellular mobile PCs with full Windows 10 and Redstone 4 update. So, in less than a year the Windows Phone OS and its successor Windows 10 Mobile should be formally dead.