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Microsoft Surface Down, As Hardware Takes Earnings Report Down

Microsoft announced mixed financials earlier, with profit above expectations and revenue lagging behind targets. Both figures were only marginally different to Wall Street predictions, but nonetheless Microsoft stock is feeling some pressure as a result.

Biggest underperformance came from the More Personal Computing division, which reports Surface and smartphone income.

Surface has suffered because of the number of imitators which have sprung up amongst the Windows OEMs. No bad thing for Microsoft, who had always treated its hardware as a guidebook for its partners. The discounts it has offered on Surface hardware have impacted profits. Microsoft likely lost volume as a result of its failure to launch a Surface Pro 5, although if Surface Pro 4 stock is still selling profitably Microsoft won't mind too much.

It also won't be bothered by the news of reduced income from Lumias, given its stated intention to end Windows Mobile hardware efforts.

However there are also indications that there is no more money available for Windows Mobile software development either and that the formal end of Windows for phones will come as early as the end of June.

Should be some mighty deals on HP Elite x3 handsets, if anyone is interested at that point.