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Microsoft released the fourth quarter of 2021 financial results today, reporting revenue was $ 46.2 billion and net revenue was $ 16.5 billion. Net sales increased by 21 percent and net income increased by 47 percent. While cloud and Office services have boosted Microsoft’s revenue, it’s clear that the global chip shortage is taking its toll.
When the PC market experienced its first major growth in ten years earlier this year, there have been some signs of sales of laptops and computers may begin to slow again in the midst of a global chip shortage. Microsoft’s Windows results for this quarter reflect that.
Windows OEM revenue has fallen three percent, blaming Microsoft for supply chain constraints. Windows non-professional OEM revenue also fell 4 percent, and Windows OEM Pro revenue also fell 2 percent.
Microsoft now plans to increase the PC market with the introduction of Windows 11, which is expected to be sent with new equipment in October. Windows 11 is a visual overhaul operating system with a new Start menu, an updated layout, and a simplification of Windows.
This last quarter is also the first time we have seen a new one Surface Notebook 4 together with sales of Surface Pro 7 Plus will affect Microsoft’s Surface revenue. Surface sales have declined 20 percent this quarter “due to supply constraints” and a strong quarter from surface sales in the previous year.
Sales of Microsoft’s Xbox Series X and Series S consoles are now in the third quarter, as they have helped boost hardware revenue in recent months. Hardware revenues are expected to grow again by 172 percent. Microsoft’s gaming revenue has grown 11 percent, but Xbox’s content and service revenue has fallen four percent. Microsoft cites an increase in Xbox Game Pass orders and a decrease in first-party item offsets from third-party revenue during the strong quarter last year.
Microsoft has not disclosed new Game Pass subscriber numbers since the company unveiled it 18 million subscribers back in January. Microsoft had regularly disclosed Xbox Game Pass numbers over the past year, but it has now gone two quarters without updates.
Developing …