Microsoft’s working on keyboard and mouse support for the Xbox One

22 Jul 2015 | Author: | No comments yet »

Apple Crumbles… and Microsoft’s Nokia Hang-up.

After cutting 7,800 staff and taking a $7.6 billion loss on its Windows Phone division, Microsoft’s chief executive Satya Nadella intends to ramp up the company’s invasion of iPhone and Android with its apps and services.

As Apple announced iPhone revenue was up 59 per cent over the last year, Microsoft effectively admitted defeat in its bid to become a major player in the mobile phone market. “We had an amazing quarter, with iPhone revenue up 59 per cent over last year,” the company’s chief executive officer Tim Cook said in the earnings release, adding that it had also had a great start for the Apple Watch.After posting its best fiscal third-quarter profit ever, Apple Inc. is facing fresh questions over whether it can keep making hit products. a revenue forecast for the current period miss estimates, triggering the steepest post-earnings drop in Apple’s shares since January 2013.Microsoft’s Q4 FY15 earnings may have been dampened by Windows Phone and the Nokia acquisition, but the software major continues to fly high on the cloud front. While the write-down has been seen as effectively neutering the remainder of the smartphone business Microsoft bought from Nokia in 2012, Nadella insists that his company is not exiting the smartphone market. “I just don’t want to build another phone, a copycat phone operating system, even.

Meanwhile, Microsoft Corp. shares fell more than 4 percent in Europe trading after the software maker posted its largest-ever quarterly loss, hurt by a $7.5 billion writedown related to its flopped purchase of Nokia’s handset unit. Commercial cloud revenue grew $832 million or 88 percent (up 96 percent in constant currency) driven by Office 365, Azure and Dynamics CRM Online and is now on an annualized revenue run rate of over $8 billion, Microsoft reported in its earnings.

Despite the strong results, Apple stock fell by 7 per cent in after-hours trading as it sold fewer iPhones than Wall Street forecast, although it later clawed back some of those losses. Under CE Satya Nadella, the company has been shifting its focus to software and cloud services as demand for its once-popular Windows operating system slows. It’s not (just) the notion of having our application endpoints, Skype, Outlook, Wunderlist, Sunrise, on every one of the two billion devices.” Microsoft has around 60 apps and games available for Apple’s iOS devices, and more than 10 apps for Android including OneDrive, OneNote, Office, Outlook and Xbox Smartglass. It is clear that we have success moving customers to the cloud given half of all enterprise agreement renewals were for Office 365 this quarter,” the company said during investor call.

The company is scheduled to roll out Windows 10 on July 29, a much-awaited launch after a lacklustre response to Windows 8. “With the launch next week, we’ve got folks that have already signed up to get it as soon as it is available … it’s an exciting time for us and the ecosystem,” Microsoft director of investor relations Todd McCommon said. In addition, Microsoft said small and medium businesses offer “one of our best opportunities for new growth in the cloud.” “For more than a year now we’ve seen 50,000 new SMB customers adopt Office 365 every month.” “Last week at our Worldwide Partner Conference, we announced our new Office 365 premium SKU for businesses, E5. Sales of Windows to businesses fell 21% from the year-earlier quarter, when demand for the operating system had surged after Microsoft discontinued support for Windows XP. Now our customers will get rich new voice functionality in Skype for Business with Cloud PBX and PSTN conferencing, deep analytics with Delve Org Analytics and Power BI Pro, and advanced security features such as Lockbox and Advanced Threat Protection.

But many have speculated that Windows Phone would die without Microsoft making phones as it was responsible for 95 percent of Windows smartphones in the last couple of years. While Microsoft wants to provide software for others to make devices, Nadella said categorically that, “if no [manufacturer] stands up to build Windows devices we’ll build them.

There will be Lumia devices.” The Microsoft head said that if that was the case it would take the form of a Surface-like smartphone — one or two smartphones made as indicators of what can be done with Windows, rather than mainstream phones to compete with Apple’s iPhone and Samsung’s Galaxy S6. In Azure, both revenue and compute usage increased by triple digits year over year, the company reported. “We’re seeing proof that preference for our cloud SaaS services creates a flywheel of growth for our cloud platform services.We tripled our revenue from Azure Premium Services this quarter.

And, with Enterprise Mobility Services, we now have more than 17,000 customers.” “In our commercial business we continue to transform the product mix to annuity cloud solutions and now have 75,000 partners transacting in our cloud,” said Kevin Turner, chief operating officer at Microsoft. Nadella said that at least a few “premium” Lumia devices would be released this year, but Microsoft may have an even greater uphill battle convincing consumers to buy them now.

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