Microsoft Q4 FY16 Results: Phone revenue declined 71%

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Microsoft today announced FYQ4 2016 earnings results. Phone revenue declined 71% which is expected given their change in phone hardware strategy. Device Revenue declined 35%(down 35% CC) driven by the phone revenue decline, however Surface revenue increased 9% (up 9% in CC) driven by Surface Pro 4 and Surface Book

Revenue in More Personal Computing declined 4% (down 2% in constant currency) to $8.9 billion, with the following business highlights:

  • Windows OEM non-Pro revenue grew 27% (up 27% in constant currency), outpacing the consumer PC market, and Windows OEM Pro revenue grew 2% (up 2% in constant currency)
  • Surface revenue increased 9% (up 9% in constant currency) driven by Surface Pro 4 and Surface Book
  • Phone revenue declined 71% (down 70% in constant currency)
  • Xbox Live monthly active users grew 33% year-over-year to 49 million
  • Search advertising revenue excluding traffic acquisition costs grew 16% (up 17% in constant currency) with continued benefit from Windows 10 usage
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