Microsoft Faced ‘Execution Challenges’
Turning to the devices business, Microsoft suffered steeper losses there than in PCs. The devices group, which includes the Surface tablet, the HoloLens and PC accessories, saw revenue decline 39%.
That drop came even though Microsoft debuted a range of new Surface products before the holidays.
“Execution challenges impacted our Surface business,” said Microsoft’s Hood.
The drop arrived, too after Congress refused the Army’s $400 million request to buy 6,900 headsets with HoloLens technology. Finally, Xbox hardware purchases went down, too, acting as another contributor in Microsoft’s decision to make “changes to our hardware portfolio” as it cuts jobs.
And, rounding out Microsoft earnings, the Productivity and Business Processes segment delivered $17 billion in revenue, up 7%. This unit houses Microsoft 365 (former Office 365), LinkedIn, Dynamics and productivity software.
