Challenging times continue for technology companies, with high inflation, high interest rates, inflated demand during the pandemic, supply problems and changing consumer behavior. In this context, there has been a serious decline in almost all the services Microsoft offers to “consumers”. But there are also good things for the company.
Cloud technologies became Microsoft’s savior
Microsoft’s product division, which includes Windows, Xbox and PC hardware, lost 19 percent in annual revenue and declined to $14.2 billion. Windows OEM revenue, the price PC manufacturers pay Microsoft to embed Windows into machines, slumped 39 percent in the second quarter. This decline is directly related to PC sales, which have experienced the biggest drop in recent years. Similarly, Xbox revenues fell 12 percent and device revenues fell 39 percent.
According to Jesse Cohen, senior analyst, Microsoft’s cloud Azure service and server technologies are performing surprisingly strong, easing investor concerns about the company. However, revenue losses are expected to continue throughout this year. On the other hand, it should be noted that this situation will not be limited to Microsoft.