this month 24, Microsoft announced as of the date of March 31, 2015 in fiscal 2015 third quarter financial results. Results showed that Microsoft third fiscal revenue was $21.73 billion, up 6.5%; Net profit of $4.985 billion, fell 12%. Analysts had expected its performance beyond the market, and promote its shares closed up more than 10%.
falling profits can get shares closed up more than 10%, essentially, capital market approved by Microsoft the transformation of the “mobile first, cloud first” strategy. The transformation of the road to the right is a Microsoft appears again in the future in the New Year’s resolution. And in order to achieve this long-term goal. Appropriate sacrifice current interest, in order to get the future bigger profits also accord with capital investment philosophy.
in the third quarter, although Microsoft Windows and Office these two suction Jin Ju beast in different levels fall, but in represents the direction of the transformation of Microsoft cloud, Office 365, Bing search, Suface of hardware and software cross-platform commendable performance.
on the cloud, the third quarter, Microsoft’s cloud services revenue grew 106%, to $1.5 billion of revenue, revenue is expected to hit $6.3 billion, its share of the market, behind amazon in second place, while the share of big gap, as time goes on, but analysts said the two share gap will speed up.
on Office 365, the third quarter, Microsoft Office 365 consumer version of the $83 million revenue growth, registered users rose 179% year-on-year, registered users has reached 12.4 million people. Office 365 commercial version also implements the registered users rose 84% year-on-year growth rate.
on Bing, Microsoft’s search advertising business revenue grew 21% year-on-year, breakthrough in the us market share reached 20.1%, rose 150 basis points (to quote @ WPDang).
Suface hardware business, quarterly revenue of $716 million, up 44% from a year earlier. This suggests that as the Surface Pro3 excellent performance, Surface business also finally got preliminary consumer market recognition, and with the price more populist Surface 3 more high-end Surface of release and the upcoming Pro4. Little suspense Surface operations continue to grow.
and on the cross-platform software, Microsoft’s support for the iOS and Android is conscience, almost all the core software of Microsoft is logged in, and, according to, Office software since landing iOS and Android, its cumulative downloads has exceeded one hundred million times.
compared to Microsoft’s cloud services, Offcie 365 subscription growth and Surface to get the public recognition and the future bright. , Microsoft smartphone business is in trouble. In the third quarter, Microsoft smartphone sales failed to the second quarter growth continues, its sales are from the second quarter of 10.5 million fell to 8.6 million units, in the third quarter year-on-year decline reached 18%.
the results, shown in the “Microsoft mobile first, cloud first” strategy under the cloud and mobile this two feet; Cloud services that foot has boarded the ship, and the mobile end this one foot still struggling in the deep crisis, at any time by the water “monster” swallow. This required Microsoft to maintain enough vigilance, personally think that, in the next period of days, go to the path of transformation of Microsoft requires at least the following several challenges.
1. Microsoft first need to face the problem is the sharp decline in profits, since Microsoft’s transformation, the company’s quarterly profit, though still surprising, but has been in decline, decline significantly. In the second quarter Microsoft issued warnings during the summer, will sell ratings by analysts. It is conceivable that released in other companies report after profits high earnings, if Microsoft earnings is long-term profits decline. Capital market of those short-sighted market rating of investors and Wall Street analysts will be willing to wait? How to persuade the investors and analysts, Microsoft will be a period of time in the future need to be one of the important challenge.
and 2 for Microsoft’s own long-term profit decline, also is not a good thing, though Microsoft has only to apple’s cash reserves, can provide powerful capital support for Microsoft’s transformation, but for excessive consumption cash reserves, will leave the new hidden danger for the future. Need to Microsoft money to measure.
, 3 compared the two front, Microsoft is the most important challenges I still thought to be its smartphone business continue for a long time. In fact Microsoft smartphone business marking time, investigate its reason is various, so to speak. Flagship vacant for a long time, more and more domestic manufacturers begin to attack southeast Asia and Brazil’s high-growth areas, these originally belongs to the low end of the the company sales poured their originally can form the application of differentiation into iOS and Android platform, and further reduces the competitiveness of Microsoft smartphone and so on are all reasons, but perhaps the most main is trapped in WP ecology.
in the increasingly fierce market competition environment, in the domestic manufacturers to use the most good at low prices high distribution strategy to low the company heavily in mobile phone market, it is Microsoft to consumption in the low-end machine, can stand in the past. Is afraid to assert that, but what is certain is that if Microsoft is still can’t broken WP on Win10 ecological ills and timely take out the true innovation differentiation competitive global flagship product, its smartphone business situation will be more difficult, and Microsoft will also in the moment the most representative of mobile terminal completely left behind.
Windows 10 will be the key to broken WP ecological ills, the reason is that “Microsoft on Windows 10 not only completed a platform to share an app store, developers of the application can use generic application for Microsoft’s PC, tablet, mobile phone sharing unified; More change previously paid to upgrade strategy is now a free upgrade strategy, announced the “Windows 8.1, Windows Phone 8.1, Windows 7 users can free up Windows 10” in the first year. The transformation of strategy, will bring the biggest driving force for the users to upgrade; And Microsoft in the PC large user base, is the next article of the nuggets to developers.
but as I was in The Windows 10: The Next Chapte, truly a new chapter of “The article said:” The new Windows 10, contain The huge opportunity, let Microsoft has a very good unified framework, but to let The Windows really become ubiquitous, also fill that need a lot of muscle. Here need to solve the biggest problem is how to attract developers and consumers, let them embrace Windows ecological again, will it as a first priority, and let the perfection of the Windows ecosystem as soon as possible.” And how to attract developers, guide developers to broken Microsoft mobile ecological dilemma, actively develop the reserves, vault? All these questions need to be at the upcoming Microsoft Build 2015 developers conference gives you an answer. As to whether the answer is satisfactory, since then. We look forward to together!
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