Satya Nadella, CEO of Microsoft: Windows PCs ‘more relevant than ever’

The Microsoft executive continues to stress that the personal computer, once overshadowed by smartphones, is experiencing a renaissance — thanks to the new era of hybrid work.

In Microsoft’s Q3 fiscal 2022 earnings update Tuesday, the company revealed that its Windows OEM business was up 11% year over year, while Surface revenue was up 18% compared to the corresponding quarter in 2021.

Microsoft chief Satya Nadella has pointed to the growing importance of the personal computer for people as it touches more aspects of life, from online videos to gaming and even working at home and sometimes in the office.

“PC has never been more relevant to work, life and play,” Nadella said on yesterday’s earnings call. “The number of use cases is increasing, and so is the amount of time spent on a PC.”

He said that “more than 100 million PCs have been shipped in each of the past eight quarters” and that “Windows continues to take its share”.

The number of use cases is increasing, Nadella said, as is the amount of time spent on computers.

be seen: Best PCs: Is a Windows PC, Chromebook, or Mac Right for You?

“For the consumer, Windows is key to organizing our content and services to help everyone with their everyday tasks, from browsing and searching to learning, gaming and shopping – all with built-in security and privacy. We’re seeing strong engagement, with nearly 500 million monthly active users of our personalized content feed. Our own, Microsoft Start. As usage continues to grow, we’re seeing a blacksmithing emerge between content, consumption and commerce, as we create new opportunities for content creators, as well as advertisers.”

According to technology analyst IDC, the first quarter of 2022 was the seventh consecutive quarter in which global shipments of desktop, laptop and workstations topped 80 million units, although that number – which topped 91 million in the fourth quarter of 2020 – is excluding tablets. and detachable tablets. IDC noted that the notable aspect in the first quarter was that the industry was able to produce more than 80 million computers despite a global shortage of chips.

However, analyst Canalys found that US PC shipments grew just 1% year-over-year in 2021. It also tracked a massive 28% year-over-year decline in laptop sales during the fourth quarter of 2021 and a decline up 31% in tablet sales for the quarter. Consumer sales are slowing and the education market is saturated.

But both analysts point out that there is strong and continuing demand among commercial PC buyers, with Dell being the biggest winner in this market.

Despite some vendor reports that Windows 11 usage is currently low, Nadella said companies are adopting Windows 11 “at a faster pace than previous versions.” He noted that with Windows 11, Microsoft continues to achieve the highest quality standards for any version of the operating system.

See: Microsoft upgraded 190,000 PCs to Windows 11 (but even they couldn’t upgrade everything)

Nadella was repeating what Microsoft hardware chief Panos Panay said in January, when he announced a “new era of computers” and that there are 1.4 billion active devices per month, with total time spent on Windows 10 percent above pre-pandemic levels.

“There is now a new hybrid infrastructure – across work, school and life – allowing more flexibility in where and how people spend their time. And the PC is the hub,” Banai said at the time.

This may be a new era for PC, but Microsoft knows that the prospects for Windows and PC are not as rosy as they were in the past couple of years.

“At Windows OEM, we expect low-to-mid-single-digit revenue growth driven by the continued shift to the enterprise-led PC market where revenue per license is higher,” said Amy Hood, Microsoft’s chief financial officer.

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