Microsoft is limping. It is definitely not the end of the company or anywhere around the area, but it suffices to say that Microsoft has seen better days. The year of 2015 has not been kind, however, and while the entire cloud business might have helped the company stay in the world’s most desired, it too can slowly feel the pressure of phone business with all its restructuring.
Microsoft has declared that the revenue in phone business has gone down by quite a significant number: 54% in what they called “constant currency.” But the bad news does not stop there since the guys responsible for the numbers are expecting the same results in the third quarter. If we were to exactly measure how far Microsoft dropped, it would amount to 17%, which means that the company is now only at a $9.3 billion profit.
You would think that $9.3 billion is a large enough money, and it really is, but what is the purpose of a company if not to make profit? As long as profit is going up, people are trying to maintain the trend and keep it going up. But when things start going downwards, questions arise. Where are we losing money from? Why are we losing it? What can we do to stop it? And these are the exact questions that Microsoft have to answer right now.
The phone business for Microsoft never looked too bright. The Nokia investment has yet to prove itself a good investment. Jobs were lost, money was lost and that is no good news for the tech giant. So the only “friend” they could turn to was Windows. The idea of developing a phone business was dropped and Microsoft declared that phones will be made with a Windows ecosystem in mind.
Microsoft’s main goal is to make Windows 10 powerful enough to carry the entire phone business upward. Things are looking ok for now, with over 110 million devices using the Windows 10. The new Lumia devices, as mentioned earlier, will also be crafted in order to support the new Operating System and carry the Windows legacy onward. In short, the more Windows, the more money,
While it is important to keep in mind that Microsoft is limping, the market should not underestimate them at the same time. Microsoft’s plan is a very long and patient one, with a huge potential endgame. Even if things are not looking well for them at the moment, Windows 10 might have the power to pull the company up within less than a year.
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