Microsoft net profits fall despite sales boost

By Andy Williams topicIcon Microsoft, Technology

Microsoft has reported its net profits fell by 10.6% in the final quarter of 2014 compared to the same quarter in 2013.

The news came despite a boost in sales of its tablets, smartphones and software helping to bring in a revenue $26.5bn (£17.6bn).

It also saw success with a 23% growth in advertising revenue from its Bing search engine, while it sold 6.6 million Xbox One units over the Christmas period.

Acquisition of Nokia proves costly

The biggest cost came with its purchase of Nokia’s phone business for $243m in the early part of the year and the subsequent integration and restructuring, contributing to its net profits falling from $6.6bn to $5.9bn.

It was also affected by Windows Pro licensing revenue falling by 13% compared to the previous year, while Microsoft shares dropped by 2.5% after-hours following the release of the company’s finances.

Windows 10 may provide sales boost

Last week, Microsoft chief executive Satya Nadella said Windows 10, which is set for release this year, will be offered free to existing Windows 8 users.

It should offer a boost to the world’s biggest software company while promising improved usability for both touchscreen and non-touchscreen devices. He also stated the company is “taking bold steps” and is looking to provide “new experience, new categories and new opportunities” for its customers.

It has already looked to diversify its offerings, with its commercial cloud sales jumping a massive 128% in the first quarter of last year and it will be hoping this trend continues.

Optimising for all platforms

With Microsoft showing strong sales of its tablet and smartphones, this underlines the importance of ensuring your website is user friendly and optimised for all platforms.

If you are looking to improve your website and ensure you reach more customers, get in touch with theEword team.