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But quarterly profit fell due to slow sales of Windows software and a strong US dollar.



From Hexus:
Microsoft reported that its Surface tablet sales brought in a record $1.1 billion in revenue during its financial second quarter, which spans the Christmas period. It also sold 10.5 million Lumia smartphones during the period. Both those figures are records for the company with Surface revenue up by about 20 per cent and Lumia sales volume up by about 13 per cent quarter on quarter.

Considering the above two important devices to Microsoft, TechCrunch said that both growth figures will be pleasing but don't represent 'scorching growth'. As in income generator Surface is doing just fine, as it will never be the cornerstone of Windows PC computing. However as Lumias are the only Windows smartphones to sell in any number, and thus the whole ecosystem rests upon their fate, building handset sales volume is vital. Smartphones are also, of course, part of Microsoft's Windows 10 "universal platform" which aims to unite phone, PC and TV.
  Microsoft sold record number of Surfaces and Lumias over Xmas