Microsoft's Windows sales drop 22% as PC prices climb

Microsoft's Windows sales to PC makers fell 22% in its fiscal first quarter ending Sept. 30, driven by rising memory chip costs that have pushed laptop prices higher and dampened consumer demand. The decline reflects a broader PC market slowdown, with Xbox content revenue also down 2% and the Devices and Consumer segment falling 3% to $15.5 billion. Microsoft had warned of this, citing higher prices and the end of a Windows 10 upgrade rush that boosted year-earlier sales. Overall, Microsoft's revenue rose 19% to $92.3 billion, fueled by cloud growth, with Azure up 48% and Microsoft Cloud revenue up 30% to $63.9 billion. Capital spending nearly doubled to $39.4 billion for AI infrastructure, while shares rose about 4% after hours as investors focused on Azure strength.