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Growing demand for Lumia and Surface has not helped Microsoft to increase profits
Microsoft’s profits drop 12% despite surging sales of Lumia smartphones and Surface tablets. At the same time, the quarterly revenues of the American corporation turned out to be higher than analysts’ forecasts.
At the end of the third quarter of fiscal year 2021, closed on March 31, Microsoft’s net income was almost $ 5 billion, or 61 cents per share, against $ 5.66 billion, or 68 cents per share of the company, a year earlier. Wall Street expected earnings of 51 cents per share on revenues of $ 21.07 billion, which actually turned out to be equal to $ 21.7 billion.
Microsoft’s sales up 6.5% year-on-year, driven largely by Nokia’s phone business acquired last year. According to USA Today, the software giant’s revenues surged despite a 6.7 percent drop in global computer shipments in the first quarter, a strong dollar and increased demand for mobile devices that are undermining traditional PC sales.
In January-March 2021, Microsoft sold 8.6 million Lumia smartphones, which is 18% more than a year earlier. The telephone business provided the corporation with $ 1.4 billion in revenue. Tablet sales reach $ 713 million, up 44% year-on-year thanks to Surface Pro 3. However, against the background of sales of corresponding Apple or Samsung products, these are very modest figures.
The report from Microsoft also shows that the quarterly revenue of the division of devices and consumer products (Devices and Consumer) was $ 9 billion, which is 8% more than a year ago. Division of corporate products (Commercial) ended the reporting period with sales of $ 12.8 billion (+ 5% YoY).