The company must strengthen its presence in the home to better compete with rivals, he added. As makers of cars to smartphones grapple with an unprecedented chip shortage, Microsoft has not been immune. "OEM revenue declined 3% and Surface declined 20%," Microsoft Chief Financial Officer Amy Hood said on a call with analysts. She added that "both were impacted by the significant supply constraints noted earlier in a good demand environment." The chip shortage could also be contributing to Microsoft's dip in Xbox content and services revenue, as constrained hardware sales lead to a weaker performance in services, Ives said. "If there's any lagging part of Microsoft, it's the consumer piece," he said. "I think that continues to be a work in progress." Microsoft projected strong growth for professional social network LinkedIn, which benefited during the quarter from robust advertising and a strengthening job market. The company reported earnings of $2.17 per share, above the consensus estimate of $1.92.