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Microsoft sales raised 25% in the last three months on the back of cloud, Xbox and, yes, even the Surface tablet and Nokia smartphones.
This is a development for a company that doesn’t need to rely on its operating system to support it.
Windows sales were just satisfactory in the last quarter: Sales to businesses were up 10% and consumer upgrades were up just a bit, but consumer PC sales were down 1%.
Sales of cloud services to businesses grew by a whopping 128% last quarter, driven primarily by the company’s Office and Azure platforms. Moreover, eighty percent of the Fortune 500 are using Microsoft’s cloud.
Office, which recently began offering a subscription model for consumers, now has 7 million Office 365 subscribers, Microsoft said. That’s up 25% over the previous quarter.
But it wasn’t just software driving Microsoft’s sales growth. Xbox sales doubled, though the comparison is a little weird — the Xbox One hadn’t launched yet a year ago. Microsoft now has more than 20 million paying members on its Xbox Live gaming and media network — another cloud success story.
The biggest boost came from Nokia sales, which Microsoft purchased in late April. Microsoft sold $2.6 billion worth of Nokia phones. But even without Nokia, overall Microsoft sales would have grown by 11%.
The company’s profit, however, slipped. The Redmond, Wash.-based software giant said its fiscal first-quarter net income fell 13% to $4.5 billion. Those results were impacted by $1.1 billion in restructuring charges, which came from its plan to cut 18,000 jobs by the middle of 2015.