As the PC market starts to slowly recover with new types of devices and other innovations, it’s fuelling the growth in Microsoft’s Windows OEM revenue. The company’s revenue gained from Windows OEMs experienced a decent rise last quarter, and the latest isn’t any different. Windows OEM revenue experienced a 1% increase in revenue for Microsoft, despite the 2% decline in Microsoft’s More Personal Computing business.
Microsoft says the growth is due to the “higher mix of premium SKUs” in the market. Here are the highlights:
- Windows OEM Pro revenue grew 3% (up 3% CC), ahead of the commercial PC market, mainly due to a higher mix of premium SKUs
- Windows OEM non-Pro revenue was flat, ahead of the consumer PC market, due to a higher mix of premium devices
- Windows commercial products and cloud services revenue grew 8% driven by annuity revenue growth and adoption of cloud security offerings
For those wondering, the decline in its More Personal Computing business was mainly caused by its phone business, which experienced a $361 million decline in revenue.