Subscribe / Unsubscribe Enewsletters | Login | Register

Pencil Banner

Windows business shows signs of recovery but what next for Microsoft?

James Henderson | July 25, 2016
Tech giant appears to have shed most of the lingering effects of declining Windows licensing revenue.

Meanwhile, Surface PC revenue climbed 8.6 percent year-to-year to $US964 million, which in turn boosted non-Pro and Pro Windows license sales from 2Q15.

For Narcotta, Microsoft’s announcement in early July 2016 that it expects to miss its goal of one billion Windows device users by 2018 illustrates how the company will be challenged to transform short-term momentum from Windows 10 adoption into sustainable growth.

“While Microsoft attributes some of the expected miss to selling its Windows-powered phone business to FIH Mobile, a subsidiary of Taiwan-based contract manufacturer Foxconn, TBR believes slower PC sales forecasted beyond 2017 are also a contributor,” he added.

However, Narcotta believes the end of the year-long trial period on July 29, 2016, for enterprises of Windows 10 - after July 29 enterprises downloading Windows 10 will be charged a subscription fee of $US7 per month, per seat - will help spur Windows license purchases among enterprises.

“This will help fill some of the revenue and profit gap created by fewer PCs shipped, and continuing to shift Windows’ overall product mix to more lucrative Pro licenses,” he added.


Previous Page  1  2 

Sign up for CIO Asia eNewsletters.