Apps & Software
Microsoft's Latest Quarter Belongs to Steve Ballmer
Published:
Last Updated:
Satya Nadella may be the CEO of Microsoft Corp. (NASDAQ: MSFT) now, but the fingerprints on the company’s most recent quarterly results belong to former CEO Steve Ballmer. Virtually every business that posted results, including the most successful, were launched or advanced on Ballmer’s watch.
The largest jump in division sales was at Nokia, which was not included in last year’s results for the quarter. Nadella became CEO in February. Microsoft bought Nokia in September 2013. Nokia provided 11% of Microsoft’s total sales last quarter.
Office 365 was launched in June 2011. In the new earnings report, management said:
Office 365 Home and Personal subscribers totaled more than 7 million, representing more than 25% sequential growth over the previous quarter.
Xbox was released in 2001, barely a year after Ballmer took the CEO job from Bill Gates. It matured under Ballmer, and the most recent generation, the Xbox One, launched while Ballmer was still CEO. In the quarterly statement, management said:
Total Xbox console sales were 2.4 million, growing 102%, and Xbox One launched in 28 new markets.
The creation of Xbox was considered a folly because Sony Corp.’s (NYSE: SNE) PlayStation dominated the market in the late 1990s. As it turned out, over time, Ballmer was right.
The first Surface tablet was launched by Ballmer in July 2012. It was supposed to be another failure because Microsoft could not compete in the crowded tablet market dominated by Apple Inc.’s (NASDAQ: AAPL) iPad and products from Samsung. Management said in the new quarterly statement:
Surface Pro 3 momentum drove Surface revenue of $908 million.
Microsoft management said that Azure was another critical part of its success. The product was first released in 2010. In the quarterly statement:
Commercial cloud revenue grew 128% driven by Office 365, Azure and Dynamics CRM.
Enough said. Ballmer was banished from Microsoft for a lack of innovation and the absence of the kind of hardware and software that could have caught the attention of, and sales from, consumer and business users. As it turns out, most of Microsoft’s new successes are based on things that are old.
ALSO READ: The 20 Most Profitable Companies in the World
Is Your Money Earning the Best Possible Rate? (Sponsor)
Let’s face it: If your money is just sitting in a checking account, you’re losing value every single day. With most checking accounts offering little to no interest, the cash you worked so hard to save is gradually being eroded by inflation.
However, by moving that money into a high-yield savings account, you can put your cash to work, growing steadily with little to no effort on your part. In just a few clicks, you can set up a high-yield savings account and start earning interest immediately.
There are plenty of reputable banks and online platforms that offer competitive rates, and many of them come with zero fees and no minimum balance requirements. Click here to see if you’re earning the best possible rate on your money!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
