Chromebooks are Windows’ greatest enemy, Microsoft earnings reveal

Microsoft
(Image credit: Mike Moore)

Microsoft just posted its second quarter 2019 financial results and almost everything across the board looks positive.

The company reported revenue of $32.5 billion and net income of $8.4 billion, which are both sharp increases over the company’s $28.9 billion in revenue and $7.5 billion net income from last year. 

Since last year, Microsoft reports that its Surface revenue has grown by 39% and gaming by 8% with a total 64 million active Xbox Live users during the holidays. On top of that, Intelligent Cloud revenue went up by 20%.

The only red spot on Microsoft’s earnings reports was a slip in revenue from Windows licenses. OEM Pro revenue went down by 5% this quarter and consumer licenses brought in 11% less revenue as well. 

Who's stealing Microsoft's business? The Chrome Caper

The software maker laid blame on continued pressure from the entry-level category, which we assume would be Chromebooks.

Considering Microsoft just released the Surface Pro 6, Surface Laptop 2, Surface Studio 2 and Surface Headphones just last quarter, we imagine and hope Microsoft will introduce another affordable product like the Surface Go

There’s a definite hole in the company’s product family for a truly affordable laptop and it could be what it just needs to fix the biggest weakness of its latest financial report.