Microsoft CEO Satya Nadella is bullish on surface sales: Here’s why

Microsoft Chairman and Chief Executive Officer Satya Nadella file image

The revenue from Surface laptops increased 39 per cent in the second quarter and the category delivered strong double-digit growth in both consumer and commercial space, Microsoft CEO Satya Nadella has said. Nadella told analysts during the company’s earnings call late Wednesday that the Surface had its biggest quarter ever this holiday. It continues to innovate and expand the family of devices, setting the bar for the industry with the newest Surface Pro, Surface Laptop and Surface Go.

He added that more broadly, Windows 10 continues to gain traction in the enterprise as the most secure and productive operating system. The company released Surface Laptop 2 and Surface Pro 6 during the holiday quarter, along with Surface Studio 2 and Surface Headphones. Revenue in personal computing was $13 billion and Surface is now almost a $2 billion business for Microsoft.

Nadella said that leading companies in every industry are partnering with to build their own digital capability to compete and grow. As one example, the co-sell programme which was introduced 18 months ago has already generated $8 billion in contracted partner revenue.

Taking about Microsoft 365, Satya said Microsoft Teams was the hub for teamwork and a powerful on-ramp for Microsoft 365. Microsoft CEO said that they are seeing rapid adoption of Teams with more than 420,000 organisations of all sizes and 89 of the Fortune 100 using Teams.

Teams is an enterprise-grade solution that brings together meetings, messaging, video conferencing as well as document collaboration. Enhanced voice capabilities like group call forwarding, location-based routing and delegation are all being brought into Teams. Microsoft Dynamics 365 product grew 51% in Q2.

On LinkedIn, Nadella said the 610 million-member strong platform continues to generate strong revenue growth across all businesses, with sessions growth of 30% year-over-year fuelled by record levels of engagement in the content and feed shared across the platform.

In gaming, Xbox Live monthly active users reached a record 64 million, which has the highest number of mobile and PC users to date.


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