And here’s our favorite moment: the financial results. Good job Microsoft!
The decrease of PC sales couldn’t keep Microsoft from improving their results. How impressive is that?
As usually, let’s focus on the online services division. First, the income:
Then the losses:
So now, we have a superb year over year sales increase of 17%, up to 832 million$.
And when it comes to the acutal loss, this is the best quarter so far for the division. So obviously, if the same trend goes on, that division will actually be profitable with the next 3 quarters, at most. So by the end of the year, Bing will finally bring money to Microsoft. How about that? I still remember Ballmer telling the world at some event: “Bing will be profitable”. Well, there it comes, only a few more months to wait. Of course, it will take a few years to have Bing actually compensate for the whole investment. But that’s probably irrelevant.
So the question is: why is this trend the way it is?
And part of the answer certainly lies within Windows Phone’s current market share gains. Nokia announced they just sold 5.6 million phones last quarter. All reports indicate the Windows Phone’s market share is going up, in some countries above 10%. Being a long time Windows Phone user myself, I will tell you this: the Bing search is quite good on Windows Phone. I never feel the need to use any “other” search engine when on my phone. This is most definitely due to the kind of searches typically performed on phones: most of the time, I look either for a phone number, or for an address. And almost everytime, the first result is what I expected.
If other people feel the same, well there you have a nice reason to see Bing market share go up steadily.