PC sales have hit record growth last seen in 2012, but surprisingly Windows OEM revenue was actually down year on year by 5%.

Windows OEM revenue declined 5%, with sales of Pro licenses down a massive 22%, saves in part by a 31% increase in non-Pro revenue, likely still driven by the Work from Home push.

Windows Commercial products and cloud services revenue increased 13%, largely due to increased interest in Microsoft 365, though Microsoft warns this was offset by transactional licensing weakness and a decrease in agreements that carry a higher in-quarter revenue recognition.

In total More Personal Computing, the Windows segment, grew to $11.8 billion, up 6% YoY, and operating income to $4.75 billion, up 18%, in part due to a reduction in advertising expenses.

Read the rest of Microsoft’s earnings here.

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