Microsoft has announced record revenue and profits for Q2 2014 (calendar Q4 2013). On the back of strong Xbox One and 360 sales, and good growth by its commercial licensing divisions, Microsoft made $8 billion profit on $24.5 billion revenue.
While Windows stayed strong in the commercial and business sector, the consumer sector continues to produce lower revenue and profits. Microsoft still doesn’t say how many Surface tablets sold, but it says that revenue and units sold doubled in the last quarter.
As in previous years, Microsoft’s commercial operations continue to do well. Commercial Licensing (Windows, SQL Server, Hyper-V) revenue grew 7% to $11 billion, with profits up 8% to $10 billion. Windows volume licensing grew by 10%, on the back of continued growth of Windows 7 and new commercial PC purchases. Cloud Services revenue was up 107%, thanks to Office 365.
Nokia’s Devices & Services division, which is about to become part of Microsoft, also announced its quarterly earnings. While Lumia sales were down from 8.8 million to 8.2 million in calendar Q4, the year-over-year sales of Lumia phones was up dramatically, from 13.3 million in 2012 to 30 million in 2013. Microsoft has said previously that it needs to sell around 50 million Windows Phones per year to break even — a figure that, with Nokia’s handset business joining Microsoft, should be obtainable.