In Microsoft’s fiscal first quarter of 2014, Windows revenue from OEM partners fell 7%. That’s a noticeable decline, given that Windows revenue from third-party hardware partners is the most ‘Microsoft’ income that the company has.
The decline, however, is somewhat blunted compared to what Microsoft anticipated. Here’s what the company said in its fiscal 2013 year-end wrap up, regarding the first quarter of fiscal 2014: “Excluding the impact of the Windows Deferral, OEM revenue (~65% of total) should decline mid-teens.”
To see that decline come in at 7% means that the fall in OEM revenue for the quarter was around half of what the company expected. That’s surprising.