The after Christmas slump has been particularly hard for technological companies, including, in part, Microsoft. The company just published their Q2 fiscal 2016 earnings report, and according to them, they made $6.3 billion in net income on $25.7 billion in revenue. While Surface really helped them thanks server growth and an impressive cloud, their phone is dragging them down. They are still relying on Windows for money
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Surface's revenue did dip last quarter, but this time it is up over 29% to $1.35 billion, thanks to the Surface Pro 4 and Surface Book.
The Windows Phone continues to slide, falling 40% in over a year, even though they have launches the Lumia 950 and the Lumia 950 XL. Microsoft only sold 4.5 million Lumia phones in the recent quarter, compared to the 10.5 million sold last year. It's a clear sign of the fate of Windows Phone.
Windows 10 also debuted this year, but the PC is still declining. Microsoft's Windows OEM Pro revenue declined 6 percent in the latest quarter, according to CNBC.
Microsoft Xbox Live users grew 30% this year, to over 48 million users. However, the revenue from the Xbox hardware was on the decline because there were fewer sales.
As has come to be expected, Office 365 revenue grew a staggering 70%, while Office 365 subscribers increased to 20.6 million in the last quarter, showing once again that they have a stronghold on the market.
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Microsoft's server products and cloud services revenue grew 10 percent this quarter, alongside a big Azure revenue increase of 140 percent.