Tomahawk, WI 05/05/2014 (Basicsmedia) –  With the decline of the PC business, Microsoft Corporation (NASDAQ:MSFT) needs to move in new directions and that’s what it seems to be doing under new CEO, Satya Nadella. Microsoft’s new emphasis on mobile and cloud solutions will position the company better to fight with Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOG).

Growth Areas

Office 365 revenue more than doubled this year and Microsoft added one million new subscribers to reach a total of 4.4 million customers. Office for iPad will bring in more customers. Also, Microsoft Azure revenue increased 150%.

With the completion of the acquisition of Nokia’s handset division into Microsoft Mobiles, Microsoft Corporation (NASDAQ:MSFT) is looking to start selling handsets under a new brand. It will be advantageous for Microsoft to distinguish itself from the Nokia brand as soon as possible since Nokia is still in business selling telecommunications network equipment and services under new CEO, Rajeev Suri.

Financial Results

Microsoft announced 3Q2014 revenue of $20.40 and operating and net income of $6.897 and $5.66 billion. Devices and consumer revenue grew by 12% to reach $8.30 billion. Windows OEM revenue grew by 4% and Bing U.S. search share grew to 18.6% while search advertising revenue by 38%. Commercial revenue grew 7% to reach $12.23 billion. Microsoft has $88.42 billion in total cash versus long-term debt amounting to only $20.67 billion.

Xbox in China

With half a billion gamers in China, Microsoft’s hit Xbox One should do well and pull in more profits for Microsoft when it launches in the Chinese market in September in partnership with BesTV New Media Co., which is a subsidiary of Shanghai Media Group.

With Microsoft Corporation (NASDAQ:MSFT) having bigger plans to convert the Xbox One into the center of the home entertainment system, Microsoft is planning to launch original programming for the Xbox. Microsoft will be facing some stiff competition from the likes of Netflix, Inc. (NASDAQ:NFLX), Amazon.com, Inc. (NASDAQ:AMZN), Hulu and Yahoo! Inc. (NASDAQ:YHOO) who are also offering original content that is viewable online.

Windows Phone 8.1

For mobile handset makers who were totally dependent on Google’s Android OS, Microsoft’s Windows Phone offers a real alternative. So far, Windows Phone has not exactly been a bestseller. However, that might soon change with the release of Windows Phone 8.1. This new version has features including a simple way to track which apps are using the most amount of the phone’s precious battery resources and Cortana, Microsoft Corporation (NASDAQ:MSFT)’s answer to Apple’s Siri. With these and other enhancements and after Microsoft announced that it’s going to offer the OS for free to handset and tablet makers, Windows Phone-based devices may finally take off.

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