Microsoft finally released the first quarter of its 2023 financial results, and scrutinizing it shows a lot of interesting news and possibilities for the company’s future.
To start, the report shows the tech giant earned a net income of $17.6 billion and $50.1 billion in revenue. Compared to past reports, Microsoft’s revenue increased by 11%, while its net income fell by 14%. This only means the company’s profits during the quarter weren’t that good. A huge factor that affected this was the decline in the PC sales of the company, which it said was a “continued deterioration in the PC market.” Specifically, it pertains to the 15% decrease in the original equipment manufacturer (OEM) revenue of Windows, which the PC manufacturers provide to Microsoft in order to use Windows in their products. Microsoft believes it could worsen in the next quarter, which could lead to a 30% drop. The same percentage is expected from the device revenue of Microsoft, which is made of HoloLens, Surface devices, and other computer accessories (Xbox consoles excluded), though it grew 2% in the said quarter. Interestingly, while there was an obvious and continuous reduction in computer sales, Microsoft CEO Satya Nadella said that the monthly active Windows device usage grew by almost 20% compared to the pre-pandemic era.
On a positive note, the company’s cloud revenue contributed $25.7 billion in revenue in this quarter’s earnings report. In connection with that, Microsoft 365 consumer subscriptions
