Microsoft Q2 2015: Surface and Lumia high, but Xbox and profits low

Microsoft has announced its financial outcome for the quarter that ended in December 2014. The company made $5.8 billion in net income on $26.5 billion in revenue, taking a leap of 8% in revenues compared to the December 2013 quarter. However, it lost in terms of profit, as in 2013 the net income was $6.5 billion.

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Also, the company made an expense of $243, which is related to the sustained integration of the Nokia Devices and Services division. The Nokia service and product division has been doing well, it sold 10.5 million Lumia smartphones, which is an increase from 8.2 million a year ago and 9.3 million in the second quarter.

The revenue has decreased as the market regenerates towards the cheaper aspect of the Lumia line. On the whole, phone hardware fetched $2.3 billion in revenues. The feature phone division sold 39.7 million phones, declining alongside the market for non-smart phones.

Surface tablet, another part of Microsoft’s hardware unit, recorded a 24% growth driven by the Surface Pro 3. In total, it brought in a revenue of $1.1 billion, which is an increase from $908 million in the last quarter.

Microsoft’s another big hardware line, Xbox, sold 6.6 million consoles (including Xbox 360 and Xbox One), a decrease from 7.4 million units sold in last year. The Xbox One price had witnessed much fluctuation, but eventually settled on $350 (without Kinect). The price decline may have driven the sales up, but revenue is down 20% year over year. Microsoft did not clear the Xbox One share in the total sales.