Microsoft has post its third-quarter fiscal results for 2016, and one thing is clear: its phone business isn't doing so hot.

The company made $3.8 billion in net income on $20.5 billion in revenue, both of which are down year-over year. Speaking of things going down, Microsoft only sold 2.3 million Lumia devices in the period that ended on 30 March. That's a whopping 73 per cent drop from 8.6 million in the same period last year. For comparison, Apple sold 13 million iPhone 6Ss its opening weekend.

Microsoft's mobile revenue therefore fell by as much as 46 per cent Still, the company saw growth from Surfaces. The segment grew by $1.1 billion during the quarter, up 61 per cent year-over-year. Microsoft attributed this growth to Surface Pro 4 and Surface Book sales, but of course it neglected to provide firm numbers for how many tablets and computers it sold in the last three months.

Windows OEM revenue dropped 2 per cent, outperforming the remainder of the PC market. Microsoft said it was able to outperform the PC market because of a "higher consumer premium device mix". It also saw some growth in the cloud department. Office commercial and cloud services like Office 365 spiked 7 per cent this quarter, while consumer versions of Office went up 6 per cent.

Microsoft now has 22.2 million Office 365 consumer subscriptions. As for server products and cloud services, Microsoft said revenue increased 5 per cent. Azure revenue increased by 120 per cent.

ee.co.uk - PAY MONTHLY PHONES The Samsung Galaxy S10+ is now available on EE who have been awarded the UK’s best network for the fifth year running. RootMetrics tested the four UK networks and EE was faster and more reliable than all of them, with better data performance. Their network has come a long way since they launched in 2012. Back then they had 11 UK cities covered by 4G. Today they cover most of the UK’s land mass, thanks to 19,000 state-of-the-art 4G sites. They’ve got faster, too – from 50Mbps to a maximum speed of 400Mbps. And they’re soon to experience even greater possibilities with the launch of 5G.

Sections Microsoft Phones