Microsoft’s Windows revenue declines in Q2 2016, but less than overall PC market

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As Microsoft continues to make its strategic transition, Windows becomes a less important aspect of the company’s overall business even as Windows 10 gains importance regarding visibility and as a measure of the company’s success. Given the general PC market’s decline, it’s not surprising that the company’s Windows OEM revenues declined in Q2, albeit less than the PC market’s overall retreat.

  • Windows OEM Pro declined 6%, ahead of the commercial PC market with strong license buy-in
  • Windows OEM non-Pro declined 3%, outperforming the consumer PC market driven by higher premium and mid-range device mix
  • Windows volume licensing grew 3% CC with annuity revenue growth partially offset by transactional revenue declines
  • IP licensing revenue decreased due to lower units and a higher mix of low royalty devices
Windows revenue decline


So far, Microsoft’s overall earnings for the quarter have been mixed. Be sure to check in with our other stories to see how Microsoft is doing company-wide.