Reduction in phone business slowed Windows 10 uptake

When Microsoft (MSFT) released Windows 10 in July 2015, the company also set a target to get the operating system running on a billion devices worldwide by the end of 2018. But a year later, the company revised its expectations, saying it might take longer to reach its 1.0 billion installed base for Windows 10. Microsoft revised its expectations for its Windows 10 uptake after it reduced its Windows phone business. In 2014, Microsoft bought Nokia’s (NOK) devices operations to expand its own phone business, but that turned out to be a failure, as Microsoft wrote off the investment about a year later.

Although Microsoft missed its target of reaching 1.0 billion Windows 10 devices by 2018, the company is closing in on its goal. Last week, Microsoft executive Yusuf Mehdi announced that Windows 10 had reached 800 million devices worldwide, up from 700 million in September.

Microsoft’s Windows 10 Reaches 800 Million Device Milestone


Windows is big business for Microsoft

Windows 10 is the latest version of Microsoft’s Windows operating system. Windows 10 was meant to power a broad range of devices from desktop computers to smartphones. Reaching the billion device mark for Windows 10 is a big deal for Microsoft. In the company’s second quarter of fiscal 2019, which ended in December, the segment that houses the Windows business contributed 40% of total revenue.

Microsoft’s total revenue for the December quarter jumped 12% YoY to $32.5 billion. Revenue fell 3.0% YoY for IBM (IBM) but rose 9.1% YoY at SAP (SAP) in the December quarter. For Oracle (ORCL), revenue was mostly flat year-over-year in the second quarter of fiscal 2019, which ended in November.





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