Microsoft’s Tablet Strategy Pays Off

by Rachel Baker on January 25, 2014

Even though there are reports of computer companies selling Windows 7 again, rather than Windows 8, Microsoft is doing something right! Editor’s note: Frankly, I can’t help but wonder if they are going to push the restart button and fire their Windows 8 marketing department, replace it with a new one and move forward from there.

Microsoft Corporation seems to be getting its business strategy right, as evidenced by a recent earnings report.

Yesterday, the company announced revenue of $24.52 billion for the quarter ending December 31, 2013. Gross margin, operating income, net income, and diluted earnings per share for the quarter were $16.24 billion, $7.97 billion, $6.56 billion, and $0.78 per share, respectively.

Markets liked the numbers — sending Microsoft’s stock higher in early Friday morning trade — a bright spot in a down day for Wall Street.

One notable area of improvement has been the company’s tablet segment. Surface revenue more than doubled sequentially, from $400 million in the first quarter to $893 million in the second quarter. “We delivered record revenue as demand for our business offerings remains high and we made strong progress in our Devices and Consumer segment,” said Amy Hood, chief financial officer at Microsoft. “These results reflect our focus on execution, cost discipline, and long-term shareholder value as we continue to drive the strategic transformation of the company.”

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