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Microsoft Earnings Report: “record $24.52 billion revenue and 3.9 million Xbox One sales”

| January 23, 2014 | 92 Replies

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With Nokia D&S heading over to MS, it might be a comfort to some to know the new ‘parent’ company isn’t short of cash. Despite the times changing in this post PC world, TheVerge reports that MS has posted a “record $24.52 billion revenue and 3.9 million Xbox One sales”. Labelled for “Q2 2014″, TheVerge explains that there was a 6.56 Billion in NET income. Revenue increased 14% compared to last year with net income increasing 2.8%

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Earlier today, Nokia posted that they had sold 8.2M Lumias. Whilst not quite to expectations, WP revenue has grown 50% for MS.

Source: TheVerge

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Category: Lumia, Nokia

About the Author ()

Hey, thanks for reading my post. My name is Jay and I'm a medical student at the University of Manchester. When I can, I blog here at mynokiablog.com and tweet now and again @jaymontano. We also have a twitter and facebook accounts @mynokiablog and  Facebook.com/mynokiablog. Check out the tips, guides and rules for commenting >>click<< Contact us at tips(@)mynokiablog.com or email me directly on jay[at]mynokiablog.com
  • spacemodel

    Not quite to expectations?

    LOL, the numbers are a disaster.

    When you call Microsoft the new parent company, it’s fair to call Nokia their new incest child…

    • ezio233

      how about calling it as a ADOPTED CHILD

    • twig

      Samsung just warned on 4th quarter numbers. Can’t wait to see Apple’s. Will they have a continued plunge globally?

      • MyLumiaAsha FTW! no more jelly selfish!

        yup better Jolla acquire Nokia D&S

        Oh wait ….

  • Noki

    well lovely for Microsoft, keep milking that desktop cow, you need to finance the money loss operation LUMIA no more nokia to do that for you…

  • dss

    They are doomed.. since the mid 90s they’ve been doomed.. but for some reason they keep making more money.. very strange

    • Janne

      Just like Nokia was some years ago, Microsoft is being “written off” far sooner than they really have been in any kind of trouble. It is the nature of the market that homes in on new gods (say, Apple) and worships them, even though the old ones are still doing strong.

      That said, the Nokia example is a good one, because such foresight – while usually just ignorance and proven wrong – can sometimes be an omen of things to come. Certainly if Microsoft were to see the desktop diminish AND loose the Office foothold too in the transition AND loose out on mobile, they could face dire times eventually.

      Of course those are not the only Microsoft businesses – they have a strong enterprise for example – but still, something to think about. And I’m sure something they do think about Microsoft, especially when gearing up things like their new D&S unit, Surface and all that.

      • Janne

        Typo: And I’m sure something they do think about Microsoft => And I’m sure something they do think about at Microsoft

        • dss

          They are a completely different company Janne.. the comp to Nokia is far fetched to be honest.

          They are a pure software company, and the demand for such products will only increase with time. Completely different DNA to Nokia’s ..

          Also, they have about 15 different businesses that bring in around 1 billion each..

          See here:

          http://www.zdnet.com/microsofts-16-billion-dollar-businesses-an-updated-list-7000019346/

          + all the income from their andro licensing.

          The ticket here is to apply the Google business model, namely make money from advertising and data mining from your customers, and provide your software products for free, whih are the tools you use for the former.

          Its a very elegant way of making money, and Microsoft is the only other company with the required know-how and infrastructure to be able to pull it off.. Bing, WP, etc.

          • Janne

            The “Google model” is an opportunity for Microsoft. Definitely. And we can see they are moving into that direction.

            Then again, all transformations come with risks. The Google model hasn’t been Microsoft’s traditional business model.

            As for the Nokia mention, I wasn’t trying to compare Nokia and Microsoft. Merely compare premature doom-mongering in the press.

          • Keith too

            “elegant way of making money”. The Google model of desperately looking for further ways to exploit their customers is a sleazy way to money. I’ll pay for my products and services any day. Microsoft is still posting record quarter after record quarter and makes double the profit of Google and Apple does even better. So maybe Google should adopt some of the Microsoft and Apple models before they become even more sleazier than what they already are.

            • coop

              allow me to replace elegant with clever..

              Don’t get me wrong, i don’t like what google are doing one bit, but if you want to compete with them you have to apply similar tactics..

              • Janne

                Yes, in many ways what Google has brought to the business is much sleazier than Microsoft ever did.

                • Janne

                  Similar story to Apple bringing new evils to the market. Even at its evilest (in 1990s), Microsoft never promoted closed software ecosystems and walled gardens.

                  Well, now thanks to the success of Google and Apple, we have all sorts of companies (including Microsoft) trying to adapt to this new sleazier reality.

              • Keith too

                Google is certainly doing well but who is to say they wouldn’t be even doing better if they sold their services instead of relying on exploitation so much. And it remains to be seen if their model is going come back to haunt them at some point.

      • Pathetic

        hey lets change to iOS we are falling we are on a burning platform its time (Elop Words).
        now yo can realize the mistake? Nokia was fine Nokia still had the means to get out of the hole by themselves, WP/Elop came to f*** Nokia

  • ms.nokia

    the monopoly keeps growing, soon the mobile market will also be dominated by ms …… thanks to Nokia :(

    while over at samsung, will start releasing its phones with its own os, instead of selling its phone business to google, Nokia can learn from that, but seems ms learned from google’s mistake instead.

    • dss

      I think Samsung might fork android before going ahead with Tizen…

      • Janne

        Sadly, possible.

        I’d rather see Samsung use their clout to bring a new platform to mobile. More competing platforms is better than less.

    • Janne

      I doubt any kind of Microsoft monopoly is possible anymore and that’s a good thing. Monopoly by anybody is bad.

      Equally, duopolies as just as bad. Microsoft is challenging the Google/Apple duopoly on mobile – and ironically that’s just as good as Linux challenging the Microsoft/Apple monopoly on desktop.

      • ms.nokia

        oh i don’t know about that, MS has xBox, they will no doubt leverage it as much as possible to get people interested in WP.

        ms owns the desktop/enterprise market.
        they own the game console market (sony can’t do with playstation what ms can do with xbox)
        and in time they will own the mobil market.

        the perfect trifecta …… business/living room/mobile

        • Janne

          I don’t think Xbox owns the gaming console market, not outside the U.S. anyway. Xbox is a good competitor, but not an owner luckily.

          • Noki

            Yeah I think they will lose about 30% of their quota this time around on the Xbox area, the PS$ is overall a more competitive product. (smaller, more powerful, cheaper)

            They will soon lunch a kinetic less version to compete with the price of the PS4. How soon? will determine how much of the market they are wiling to lose. From what I hear outside of the US Xbox is selling really poorly in comparison to the PS4.

            *replies from Random Random are ignored

            • Random Random

              Well.

              Nice to hear that I have made an impression.

              What it comes to the consoles, it remains to be seen how those will compete.

            • muhs

              From what I hear outside of the US Xbox is selling really poorly in comparison to the PS4????? it seems u r out of this world. MS sold 3 million xbox ones in 13 countries only while sony sold 4.2 million in 28 countries within the same period. Now add to that that Xbox one is more expensive than PS4. u can do the math; MS is certainly having the upper hand. and if indeed MS will launch a Kinect less version, then there’s no where but up for Xbox one sales.
              btw Ms also sold 3.6 million xbox 360’s , sony hasn’t mentioned PS3 sales but i guess it will hardly be able to move PS3’s of more than half of X360’s number.

              • Noki

                sure pall, :) keep it on :)

              • Noki

                and BTW your comment is way melodramatic, c’mon my argumentation was rational.
                PS4 does indeed offer more value for money. The ps3 vs xbox 360 was a draw with ps3 having a slight advantage of sales globally.

                Witch was fair being that both consoles were similar in terms of value for money.
                This time around the Xbox is slightly worse and more expensive so less value for money, if they don’t lower the price I suspect the PS4 (that cant be found any ware to buy) will achive 30% more market share than Xbox…

                Now if you want to provide some more rational arguments o the table please do, if you just want to toss insults and overly emotional responses, then remember that you might qualify to get 3 dollars from Microsoft astroturfing program…. details in http://pastebin.com/vec6vjv5

                • Random Random

                  Well.

                  It’s quite subjective view to claim that one of the consoles is better than another if there are no reasons given why it’s like that.

                  In the past the games have been the key to the victory. Not the hardware. Does the PS4 have considerably better games? How about Microsoft?

                  This competition remains to be solved but currently the consoles are both relatively equally powerful. There are differences but nothing really significant at the moment.

                • Keith too

                  If you only factor in the hardware it appears that the PS4 may edge out the XOne but it is really too early to tell. But when you factor in the additional services and Xbox Live then the Xbox has more value.

                  • noki

                    Hardware and price. Don’t forget the price…the services provided are pretty much on pair I would say some better some worse but not a major difference the price on the other end….. significant diference…

                    • noki

                      Any way before this goes into another flame festival. All I said is that given the more competitive ps4 Microsoft will lose some of its share to Sony in the consoles wars and will have to drop the price. Guess no one will be surprised if a kinetic less xbox comes out soon with a 100 dollars discount….

    • Noki

      This how they operate, this is how it as ways been to date, do you now believe the people that told you it was going down like this way back in the beginning?

  • BellGo

    “Nokia posted that they had sold 8.2M Lumias.(less than before) Whilst not quite to expectations, WP revenue has grown 50% for MS.”

    How is this possible? What compared to last year or something? It can’t possibly be compared to last quarter.

    Also I don’t get how MS keeps making more money with their core products dropping, Windows sales dropped and once again Windows Phone sales dropped. Office? Also did no money go to Xbox One marketing? I just haven’t found a good breakdown for the numbers, they seem.. off.

    Does anyone know more specifics?

    All replies by Random Random will be ignored.

    • Janne

      Some speculative ideas:

      One thought that springs to mind, although I doubt it could anywhere near explain that 50%, is increased WP Store income. It must be growing as the WP market has grown quite a bit.

      Another idea is that perhaps some grace period expired and Nokia contractually started paying more to Microsoft for each handset sold.

      • twig

        Windows phone users tend to spend more on apps, games,xbox video, all which generate increased revs. Android users by their own admission, like free. Apple users are spenders also, forced.

        • noki

          Sorry to burst your bubble but most of wp users bought the uber cheep L5xx… so not big spenders…

    • Noki

      Milking the cow, milking the cow ;). plus there is a lot of engineering one can do to spice numbers up in a single quarter or 2 quarters, This being Balmer’s last probably has a lot to do with it, legacy for historical revisionists.

      • koopa

        Maybe MS has just increased the licence cost. There might be a loophole in their contract.

        MS just milking NSN:s money back buy increasing the licence cost. Remember that Nokia made loss of 191me with their D&S.It is really funny that other co-operation partner is doing profit and the other one just take the losses.

        Very balanced partnership indeed.

        • Noki

          Microsoft is Microsoft ;)

          *replies from Random Random are ignored

          • Random Random

            Well.

            Blaming Microsoft is the easy way. No need to think.

            • Janne

              Blaming Microsoft is the easy way. No need to think.

              Some people prefer the easy way out.

              • koopa

                Honestly are you blind or what? Naive as one can be.

                You certainly have bias on the MS side and always has been. Somehow you just always twist things so that as if you were looking thing objectively and you are for sure not.

                Do you do that kind of talking for living or what? Some middle manager in a company that has too low focus on actually doing something.

                • Janne

                  Of course I have no Microsoft bias. I have a Nokia bias, if anything. I have absolutely no personal interest, fandom or whatever in Microsoft. Most of my life I have used non-Microsoft products. I have, though, followed IT including Microsoft closely for a long time.

                  I know exactly what Microsoft did in the 1990s (the Be case was especially despicable) and I also know how the landscape changed in the 2000s, Microsoft became more standards compliant than ever in their history, while new evil empires arose at Apple and Google.

                  That doesn’t mean Microsoft is somehow pearly, it just means “simply blaming Microsoft” doesn’t wash anymore. Maybe it did in the 1990s, probably not always even then, but not really anymore. Today blaming Microsoft without considering the changed larger landscape is just ignorance.

                  Nobody can be objective all the time. I’d like to think I at least try to be more objective than some people, who clearly just vent very one-sidedly.

                  I am not a middle manager and I don’t talk for a living. I’ve even coded Symbian for a living.

                  • Janne

                    Just to be clear though, I of course have worked with Microsoft software for much of my life, like anyone working in IT. Personally at home I have mostly preferred other platforms. I know the ups and downs of Microsoft software since those MS-DOS days. And who hasn’t coded on Microsoft basic on some 8-bit platform or another. :)

                  • Noki

                    ” while new evil empires arose at Apple and Google.”

                    cue in empire song…

                    IGNORE EVERYTHING MICROSOFT IS DOING TODAY…

                    do I need to go and get all he countless acts pure evil Microsoft as done in the last few years …Its not like there’s not enough profs of those,
                    Just the other day http://pastebin.com/vec6vjv5

                    • Random Random

                      Well.

                      Nokia should have done the same long before Microsoft did that.

                      Why didn’t Nokia use the option they had?

                      Because Nokia didn’t know how or didn’t they have resources for that?

                    • Janne

                      Noki:

                      I don’t ignore anything Microsoft has done.

                      I’m merely saying, comparatively, Microsoft is much less evil than they were in the 1990s – and less evil than Google and Apple are, comparatively.

                      Nokia too has done many evil things. I don’t ignore them either. Nokia just isn’t on the level that those American giants are – never was. Still, Nokia too has done many questionable things e.g. in Finland.

                      All big companies are somewhat evil. But what is important is how they act comparatively and at different times, that does makes a difference.

                      We know. You hate Microsoft. For you it is personal.

                    • Janne

                      Clarification: and less evil than Google and Apple are, comparatively. => and less evil than Google and Apple are today, comparatively.

    • v.s.i

      WP also contributes to MS’s ad network. The stores. Increasing usage of additional MS services as Google’s are missing and people realise Google has become more aggressive with theirs (G+ debacle and the like). The business side (servers, W8, WP8) is doing well too.

      Also, the tie-ins with FB and Twitter are good examples of people getting acquainted with MS and Bing. Oh yeah, I don’t really know how Bing makes money but I guess it’s kind of the same as Google Search (personalised results).

      Or, you know, they could be faking the numbers to screw the shareholders.

      • Random Random

        Well.

        They are obviously fabricating the numbers just to please the tinfoil lunatics.

        I didn’t see the same people complaining when Nokia obviously fabricated Ovi Store downloads by including updates and re-downloads. Not to speak about including all the content they had. Not just applications.

        Microsoft just has to be evil.

    • jiipee

      New Android licensing deals?

    • Justin Beiber RR

      It is basically this.
      MS Sign a three year contract in the enterprise world.
      They break the money into each quarter and report the earnings as if they are new sales. though confusing everyone.

      They are good are throwing pixie dust in the air to get you confused.
      For you to see actually what they are doing.

      Check their yearly statement when they cross the financial year, which is around May or June for each year.

  • twig

    I would like to see ATTphone, or Tphone licensed from Nokia’s tech treasure that never made it yet to phones, forked Android. Carriers would push their salespeople into selling those to meet sales quota for rebates from Nokia,higher profits for carriers and would bring Here to the masses.

  • Mr.Elop

    Some people accuse me of having no pride, going back as a division chief when I was the CEO of a major corporation. My philosophy is “pride kills” and taking the easier route out is always better. Mere survival, even if on your knees, is much better than fighting it out (if the prospect is not certain). I take comfort in the fact that Janne, RR and co have similar principle in life.

    • Janne

      I take comfort in the fact that Janne, RR and co have similar principle in life.

      Taking the easier route certainly hasn’t been my principle on MNB. If it were, I would have been hating on Elop and loving Symbian. :) That would have been the easy route here.

      • Mr.Elop

        How marvelous! You had to violate the very principle in order to defend the principle! Let’s chant together “Surviving on knees always better than uncertain victory!”

        • Random Random

          Well.

          Surviving on knees is better than facing a certain defeat.

          There is no reason to believe that Nokia could have survived with MeeGo.

          Sure.

          MeeGo might have worked for them, but nothing suggests that they could have gained enough sales with it in order to survive.

          Then again.

          In the business there shouldn’t be such thing as pride. Business life and personal life are two very different things.

          • Mr.Elop

            A loser will always be a loser. For losers like you, losing is always dead certain after the fact. Nothing can be done about it. I feel sorry for your mother.

            • Random Random

              Well.

              Once again you failed to have any reasons why Nokia could have survived with MeeGo.

              Qt was proven to be a failure and there was no migration path.

              • Mr.Elop

                I agree. If your horizon does not go beyond toilet lid, there can be no possible way out in sight.

                • Random Random

                  Well.

                  Qt really failed and with that failed Nokia’s hope of migration path.

                  Without that MeeGo was just another Linux distro without any major software backing.

                  • Mr.Elop

                    My friend. The only certain lost hope is you.

                    • Random Random

                      Well.

                      You should not break the character once you start doing that.

                      Anyway.

                      Qt for Symbian was proven to be a failure in early 2011 and it just didn’t work well enough.

                    • Janne

                      This is trippy stuff. :)

                      Well played, guys, well played.

    • Random Random

      Well.

      Nokia would have faced certain collapse with MeeGo.

      It turned out to be a much better choice to pick WP instead. That way they got at least some money from the D&S.

      • Mr.Elop

        My friend. That’s the spirit. That is precisely what I am talking about.

        • Random Random

          Yes.

          It’s nice to see how you can say that in that role.

          Playing a role may work for you if you can’t speak up without that.

          • Mr.Elop

            Who says I’m playing a role? By your standard of argument, don’t you have to prove that I’m not merely playing the role?

            • Random Random

              Well.

              Nice to see how you can talk using that nick.

              • Mr.Elop

                You haven’t given me the proof that I’m not the real Elop (Just as I have not given you the proof why Qt couldn’t possibly be a nothing but a failure)

                Let’s keep up that good standard of argument that you so much uphold.

                • Random Random

                  Yes.

                  Now we can see that you can talk.

                  • Mr.Elop

                    Ergo I’m the real Elop. The burden of proof is never on the one who make bold claims without evidence.. according to your standard.

                    • Random Random

                      Well.

                      Maybe you can learn tricks too?

      • Mr.Elop

        When the time comes when your mother is seriously ill, rather than trying to revive her, let’s take out her organs and sell them before killing her off. “That way you get at least some money from your mother”

        • Random Random

          It’s not too uncommon to take organs from the braindead once there is no longer any hope left.

          • Mr.Elop

            “It’s not too uncommon to take organs from the braindead once there is no longer any hope left.”

            I rest my case.

            • Random Random

              Well.

              Here in Finland you don’t have to register to be an organ downer. Organs can be taken from the dead unless they have specifically forbidden that.

              • Mr.Elop

                yep. also too many braindead walking about as if alive. A good example is kindly demonstrated by you. Thanks.

                • Random Random

                  Yes.

                  You apparently didn’t know how it’s in Finland.

                  • Mr.Elop

                    You ellucidated me on that alright.

                    • Random Random

                      Yes.

                      Qt was a failure on Symbian. The problem was that Symbian had a flawed architecture and building another layer on the top of it didn’t solve the fundamental issues it had.

                    • Mr.Elop

                      Yes.

                      Qt(Argumet) was a failure on Symbian(Random Random). The problem was that Symbian(Random Random) had a flawed architecture(intelligence) and building(telling) another layer(something sensible) on the top of it didn’t solve the fundamental issues it had.

                    • Random Random

                      Yes.

                      Qt was a disaster on the mobile.

  • Mr.Elop

    Also some people blame that I’m responsible for the downfall of Nokia as a phone manufacturer. My fandom insists that it is not me but the Symbian and the Meego and all those garbages that fixed the certain death path for Nokia even before I started.

    I say: they are only half-right. The buck doesn’t only NOT stop with me, not even with Symbian/MEEGO/OPK, but at the end of the days, to the fact that you people suck.. you don’t even know when you have been robbed and raped.

    • Noki

      Mr.Elop your WP was doomed the moment it coexisted with SYMBIAN Meego or Qt, its such bad products thet it would make sales plunge into an abiss see wp sales on HTC and SAMSUNG, the reason they were so bad was….. SYMBIAN Meego and Qt were so hated that people did not buy WP from HTC, ZTE, SAMSUNG…. etc etc
      poor Mr. Elop its all Symbian foult

      *replies from Random Random are ignored

      • Random Random

        Well.

        Surely you think it wasn’t a problem that Qt on Symbian was horribly delayed and extremely buggy.

        • GordonH

          Surely you think WP8 was not delayed . Nokia was forced to dump everything for a technically weak WP7 or WinCE cause WP8 was not ready.

          • Random Random

            Everything Nokia used was delayed. Nokia should have started selling WP8 in 2009.

            Qt, Symbian, WP and MeeGo were all horribly delayed.

  • Shane

    sub.

  • GordonH

    “Windows’s share of the same market declined from 47.5% to 28% over the same period. ” Quoted from another blog.

    Declining market share means platform is on fire. Need to throw all R&D and past OS development. Use a competitors OS, and nothing else. OH The fancy terms and excuses used to kill Nokia.

    • Random Random

      Well.

      But on the other hand last time Nokia had only about 5% of the market share left and less unit sales they now have.

      • GordonH

        Very understanding and positive thinking for MS… I guess this attitude doesn’t work for Nokia.

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