Microsoft Reports $23 Billion In Revenue For Q4 2014

microsoft-building-logo2-1920 Microsoft posted its Q4 2014 revenue earnings report this afternoon, with $23.38 billion generated during the last quarter of its fiscal year. Noting it had completed the acquisition of "substantially" all of the Nokia Devices and Services in April, Microsoft CEO Satya Nadella claimed the company is: Galvanized around our core as a productivity and platform company for the mobile-first and cloud-first world, and we are driving growth with disciplined decisions, bold innovation, and focused execution. Nadella went on to say Microsoft's commercial cloud revenue doubled this year to a $4 [...]


Microsoft Cutting 18K Jobs As It Integrates Nokia And Tries To “Move Faster”

microsoft-earnings-business-featured Driven in part by its Nokia hardware acquisition and a recognition of the need to restructure for "post-PC" competitiveness, Microsoft CEO Satya Nadella announced widely anticipated layoffs this morning. A total of 18,000 jobs will be eliminated by June 30, 2015, most by the end of the year. The bulk of the layoffs ("12,500 factory direct and professional employees") will impact former Nokia personnel. The company said it will take a charge of up to $1.6 billion related to employee severance and other associated expenses. In a letter to employees, Nadella said the cuts were intended to [...]


Nadella Interview: Bing To Stay, ‘Post-PC’ Now The Way

Microsoft Surface 2 Several days ago, Microsoft CEO Satya Nadella gave his first in-depth interview at the Code Conference. He spoke about a wide range of issues and challenges that Microsoft faces. He also helped demo some impressive machine translation software (integrated into Skype). Among the striking things Nadella said was that Microsoft had entered the "post-PC era." Apple CEO Steve Jobs coined the term and you never would have heard that from Nadella's predecessor Steve Ballmer. Another contrast between the two CEOs is Nadella's somewhat surprising, open ambivalence about the Nokia acquisition, whi [...]


Android To Hit 80 Percent Market Share This Year — Report

smartphones-featured Smartphone growth continues according to the latest "shipments share" numbers from IDC. The firm anticipates Android will reach 80 percent global market share this year but decline to roughly 77 percent in four years largely because of Windows Phone growth. The iPhone remains strong in developed markets and weak in developing markets where the handset is too expensive for many. The report acknowledges the potential positive impact of a larger-screen iPhone but doesn't believe that will significantly affect Apple's global market share. IDC sees Windows Phone handset share growing from [...]


Microsoft’s NewFront Shows Interactivity Is At The Heart Of Xbox Originals Content

Microsoft NewFront Microsoft's nightclub-themed NewFront presentation in a warehouse-like space in New York's Penn Station focused on the developments from Xbox Entertainment Studios. Likely in response to complaints that Microsoft has been too slow to move in this area, Xbox Entertainment Studios president, Nancy Tellem, -- charged with delivering premium TV content -- told the audience of hundreds of advertising industry movers and shakers that "building something substantial is going to take time." Xbox Originals content that will be coming out of Xbox Entertainment Studios is aimed primarily at gamers [...]


Microsoft Revenue $20.4 Billion For Q3 2014 Beats Estimates; Search Advertising Up 38 Percent

MicrosoftSquare In the first earnings report since Satya Nadella took the helm as CEO, Microsoft today announced revenue of $20.4 billion for third fiscal quarter of 2014, beating analysts' estimate of $20.38 billion. Earnings per share came in at $0.68 per share, also beating estimates, which had pegged per share earnings at $.063. Revenue was essentially flat from the previous year and net income fell 6.6 percent to $5.66 billion. “This quarter’s results demonstrate the strength of our business, as well as the opportunities we see in a mobile-first, cloud-first world. We are making good progress i [...]


Traditional PCs Shrink To 10 Percent Of Device Market In 2015

Multiscreen Millward Brown IT consulting firm Gartner projected today that overall device shipments (not sales) would increase this year by nearly 7 percent vs. 2013. Sale of traditional PCs still represent a drag on the industry, although tablet substitution for PCs is supposed to slow. Recognizing the importance of addressing all platforms now Microsoft CEO Satya Nadella announced today (as expected) that Microsoft Office would be available for the iPad as a set of native apps: We’re bringing Office, the gold standard in getting things done, to the iPad. A billion people rely on Office every day, and we’ve wor [...]


Microsoft Board Chair: Company Culture Must Change

Microsoft Surface 2 Tech journalism tends to focus on "who's winning," who's buying whom and new company products. Rarely is there much discussion of organizational culture. But that's often the hidden "X variable" behind success or failure. In a candid statement to Fortune, Microsoft Board Chairman John Thompson likened Microsoft to IBM 25 years ago and acknowledged that the company culture must change now that the "Windows monopoly has run out": I think one of the things IBM learned was when their monopoly ran out and they had to compete with a bunch of smaller, more agile companies, they needed to have a [...]


As Microsoft Figures Out Next Mobile Move, Apple & Android Grab 94 Percent Of Smartphone Market

smartphone-shutterstock According to hardware tracking firm IDC, "Android and iOS accounted for 95.7 percent of all smartphone shipments in the fourth quarter of 2013, and for 93.8 percent of all smartphone shipments for the year." Yet Windows Phone wasn't entirely shut out. On a percentage basis, Windows Phones grew more than other platforms. But in real handset terms, Windows Phone is still very much a bit player, except in a few markets where its share has approached or reached 10 percent. Source: IDC As new Microsoft CEO Satya Nadella takes the helm in Redmond, he must contemplate how to accelerate [...]


It’s Official: Satya Nadella Is The New Microsoft CEO

Nadella Microsoft CEO Microsoft's website has confirmed what everyone came to expect over the past week or so: Satya Nadella is the new CEO. On the Microsoft site it says: As Satya Nadella becomes the third CEO of Microsoft, he brings a relentless drive for innovation and a spirit of collaboration to his new role. He joined Microsoft 22 years ago because he saw how clearly Microsoft empowers people to do magical things and ultimately make the world a better place. Many companies, he says, “aspire to change the world. But very few have all the elements required: talent, resources and perseverance. Microsoft [...]


Microsoft Says Product Demand Remains High, Reports Record $24.52 Billion Revenue For FY14 Q2

microsoft icon 2012 Microsoft has released its earnings report for FY14 Q2, claiming a record $24.52 billion in revenue. "We delivered record revenue as demand for our business offerings remains high," said Microsoft chief financial officer Amy Hood in a statement released today. Microsoft's devices, consumer and commercial revenue all climbed. Devices and consumer revenue was up 13 percent, totaling $11.91 billion. According to the report, Surface revenue doubled from the first quarter to second quarter, growing $400 million to $893 million. Microsoft says it sold 7.4 million Xbox consoles, split betwee [...]


Microsoft’s CEO Dilemma: Internal Candidate, Mobile Maven Or Turnaround King

MicrosoftSquare According to Reuters the list of Microsoft CEO candidates to succeed Steve Ballmer is down to a short list of four or five. Among them are current Ford CEO Alan Mulally, former Nokia CEO Stephen Elop, Microsoft executive and former Skype CEO Tony Bates and Microsoft's Satya Nadella, who at one point oversaw Bing. Mulally is regarded as a turnaround specialist. However he currently runs Ford and may be inclined to stay. In addition he's a tech outsider and may not have sufficient "product vision" to lead Microsoft at this time of market transition. However Mulally is the most visible and [...]


Microsoft Joins the Anti-Cookie Movement, Working On Its Own Replacement

microsoft-cookies-featured Following news that Google is likely working to replace the much-maligned cookie for tracking and ad targeting on the Web, Ad Age is reporting Microsoft is working on its own cookie-replacement technology. Microsoft is apparently developing technology that would run on its own devices and platforms including Windows desktops, tablets and smartphones, Xbox, Bing and Internet Explorer. Microsoft's ownership of these various products enables it to replace the cookie with what Ad Age says is essentially a device identifier that users would opt-into when accepting the usual terms of service agre [...]


Microsoft Wins 13 Bing-Related Domains From Squatter

bing-2013-icon In a decision announced last week, Microsoft won 13 domains from a cybersquatter based in Taiwan. It was a quick case. Microsoft submitted its complaint on September 24th, asking the National Arbitration Forum (NAF) to transfer ownership of the domains from the registrant, Chiou Ji-an. The domains listed in the complaint all include the name of Microsoft's search engine, Bing: bing119.com bing1314.com bing168.com bing911.com bingaudio.com bingbaidu.com bingbio.com bingbrazil.com bingegypt.com bingface.com bingfrance.com bingspain.com bingvision.com The defendant told the N [...]


Forecast: Mobile Devices To Eclipse PCs In Q4 This Year

computer-smartphone-tablet-featured IDC has released its latest devices forecast arguing that tablets will overtake PC shipments (desktop + laptops) in Q4 of this year. The firm said that for the full year PCs will still have larger numbers, but that will change by 2015 with tablets outpacing PC shipments. IDC expects essentially flat growth for the PC market during the four year forecast period with laptops offsetting declines in the desktop market. However I think that's a bit of wishful thinking on IDC's part. Only if the enterprise market compensates for declines in the consumer market will we see flat or modestly positiv [...]


Post BBQ News: Microsoft Buys Most Of Nokia For $7.2 Billion

microsoft icon 2012 Many people in the US returned from Labor-Day barbecues to discover that Microsoft had acquired Nokia's hardware business for roughly $5 billion and would spend another roughly $2 billion to license the Finnish company's patents. The total value of the deal is 5.44 billion euros or approximately $7.2 billion. Here are some of the details from the Microsoft press release: Microsoft will acquire substantially all of Nokia’s Devices and Services business, including the Mobile Phones and Smart Devices business units as well as an industry-leading design team, operations including all Nokia D [...]


Microsoft CEO Ballmer To Retire Next Year, Market Likes The News

microsoft icon 2012 Unlike his predecessor Bill Gates, Steve Ballmer has had a tougher time of it. To some degree, it's not his fault. However, the current Microsoft CEO has presided over a period of disruption and decline in the company's once-dominant market position. It can all be summed up in the following way: Android is now the world's leading operating system. This morning, Microsoft announced that Ballmer will retire in the next 12 months. Ballmer has been CEO of the Redmond, WA-based company since 2000. It's appropriate for him to retire. However, it may also be that he was "encouraged" to do so by [...]


BlackBerry Up For Sale, New iPhones To Go On Sale

Blackberry Q10 BlackBerry has raised the white flag. It's over. The board has formed a special committee to explore "strategic alternatives." That means the company is essentially for sale. Here's the statement: BlackBerry Limited, a world leader in the mobile communications market, today announced that the Company's Board of Directors has formed a Special Committee to explore strategic alternatives to enhance value and increase scale in order to accelerate BlackBerry 10 deployment. These alternatives could include, among others, possible joint ventures, strategic partnerships or alliances, a sale of the Co [...]


Android Tablet Shipments Soar, Usage Hasn’t Shown Up Yet

Image Credit: Gizmodo Strategy Analytics came out with Q2 shipment estimates for tablets -- which are supposed to exceed PC sales by the end of this year on a global basis. It's now a critical market segment. The data show Android tablets with a solid "shipments share" lead over the iPad. What the numbers appear to reflect is two-thirds Android market share vs. iOS. However that's not reflected in actual usage, at least in North America, where the iPad has increased its share of Web traffic over Q1. Collectively, according to Chitika, non-iPad tablets (essentially Android) are driving roughly 16 percent o [...]


Microsoft Also Misses On $19.9 Billion In Quarterly Revenue

microsoft-earnings-business-featured A little while ago, Google disappointed investors by missing bullish revenue estimates. Microsoft also did so when it reported fiscal quarter and full-year earnings today. Redmond's overall revenue for the quarter was a massive $19.9 billion. Yet analysts had anticipated just under a billion more. Net income was $6.07 billion. The company also took a whopping $900 million charge associated with disappointing Surface RT sales -- and related pricing adjustments. The company's quarterly revenues were clearly affected by "by the decline in the PC market," said Microsoft CFO Amy Hood. [...]


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