Windows and devices are both down big.
a nearly 29 percent year-over-year drop in Q4 — the largest quarterly shipment decline since it began tracking the PC market in the mid-1990s. Microsoft’s Windows-related revenue has been hit hard as a result.
Windows OEM revenue, the price PC manufacturers pay Microsoft to put Windows on machines, fell by a massive 39 percent in Q2. Microsoft says this was driven by “continued PC market weakness and a strong prior year comparable.” Gartner says the total amount of PC shipments in 2022 was close to pre-pandemic levels, so it’s clear the boom of laptop purchases is well and truly over. “Since many consumers already have relatively new PCs that were purchased during the pandemic, a lack of affordability is superseding any motivation to buy, causing consumer PC demand to drop to its lowest level in years,” says Mikako Kitagawa, director analyst at Gartner.
After Congress denied the Army’s request to buy up to 6,900 headsets based on Microsoft’s HoloLens technology, job cuts have hit the HoloLens division particularly hard. Microsoft’s struggles with HoloLens have been well documented over the past year after former HoloLens boss
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