Microsoft announced its Q2 earnings for the fiscal 2015. The Redmond giant posted a net income of $ 5.6 billion from $ 26.5 billion of revenue. The latter has increased by 8% from the same period of last year, while net income has declined by 10%.
Thanks to the strong sales of low-cost smartphones, Microsoft’s Phone Hardware division posted a 28% increase in sales from the same quarter a year ago. The company sold 10.5 million Lumia devices for the three months that ended in December 31 – up from 8.2 million last year.
Microsoft incurred a $ 243 million expense to integrate the Nokia phone business it acquired. The negative impact equals $ 0.02 per share.
The Surface business also did quite well during the quarter. Thanks to strong sales of the Surface 3, the division posted $ 1.1 billion of revenue – up by 24% from a year ago.
The Xbox division sold 6.6 million units for the quarter. The number includes both Xbox One and Xbox 360 units.
Microsoft’s OEM revenue for Windows dropped by 13% during the quarter. The company’s server and cloud products on the other hand grew by 9% and 116% respectively.
Going forward, Microsoft expects intense competition in all markets. Redmond will continue to make investments in new products and will increase focus on services.