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If PC sales dropped 14%, how did Microsoft keep Windows revenue stable?

Nancy Gohring | April 19, 2013
Despite all the predictions that Surface sales were dismal, tablets might have saved Microsoft’s Windows division. But we might have to wait a quarter or two to find out for sure.

Update: Sounds like Surface and enterprise volume licensing combined to make up for dropping PC sales.

During the analysts call, Chris Suh, general manager of investor relations at Microsoft, said that OEM revenue performance was in line with the underlying PC market, which he characterized as "challenged." He also said that inventory levels dropped as the channel waits for new Windows 8 models.

But he also said that non-OEM revenue was up 40 percent, boosted by sales of Surface tablets and double digit growth of volume licensing.

So despite all the negative buzz around Surface tablets, they seem to have helped keep the Windows division above water during the quarter.


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