Windows Phone Is Not Dead — Microsoft Slams Rumors

Part of the reason why Windows 10 got off to a fast start is because Microsoft offered it as a free upgrade to anyone running Windows 7 or Windows 8/8.1.

Would you consider switching over to Windows 10 now that Microsoft is offering you two smartphones at the price of one? The new operating system, however, failed to capitalize, as its growth rate has significantly slowed down.

Much of the difference in the companies' fortunes boils down to Microsoft's fundamental business as a software company versus Intel's as a hardware company, said Nick Sturiale, a venture capitalist at Ignition Partners. They add that although this seems like a very sizeable improvement, Amazon Web Services had about a 14% operating margin when the segment was worth about $4.6 billion. Assuming that server transactional revenue is down 10%, annuity roughly flat and Azure growing at 60% or more, the brokerage firm estimates that that revenue would still be up roughly 5%. The company previously pro jected that it expects this number to hit $20 billion by 2018.

This segment, which includes results for Windows licensing and devices (Surface, phones, and Xbox), decreased 1 percent to $9.5 billion.

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At the time, Windows 7 was still the operating system of choice for 55 percent of all computers. Microsoft said this decline was OK because it counts as "outperforming the PC market".

Steve Ballmer's legacy to the company, its phone business revenue declined 46 percent. It notes a big gap between the quality of the Surface tablet and Lunia 950 phones, both launched a year ago, with glowing reviews for the tablet and thumbs-down for Lumia.

Advertising revenue from this group, excluding traffic acquisition costs, grew 18 percent. Windows 10 may be able to provide that and once and for all fulfill the dream that has existed as early as Java's slogan, "Write once, run anywhere". Even if on a monthly basis Windows 10 would continually gain a full percentage point and Windows 7 kept dropping by 3 percent, Windows 7 would still hold a slim lead in December before finally conceding the top spot in January of next year.

Source: Windows Phone Is Not Dead — Microsoft Slams Rumors