More Hardware Blues
Windows OEM revenue also fell, by 6 percent, something Microsoft attributes to lagging PC sales while noting that its OEM business outperformed the PC market. Declines also came from Microsoft's Surface hardware. For the first quarter of 2016, Microsoft reported Surface device revenue had fallen to $672 million, down from $908 million in the same quarter a year ago. Tapering sales were in large part due to delayed Surface sales in anticipation of Surface Pro 4, which goes on sale next week, the company said.