About Nokia We create the technology to connect the world. Only Nokia offers a comprehensive portfolio of network equipment, software, services and licensing opportunities across the globe. With our commitment to innovation, driven by the award-winning Nokia Bell Labs, we are a leader in the development and deployment of 5G networks.
The phone that really started it all, Nokia's Lumia was Nokia's first attempt at winning over the U. The camera still managed to disappoint, but the device did capture attention with its bold color choices, like cyan. The Lumia was the original budget Lumia, launching at the same time as Nokia's first Windows Phone, the Lumia While its design isn't as appealing as other Lumia phones, it does boast a decent 5-megapixel camera.
Like the , however, its Windows Phone 7. While the Lumia 's 3. Unfortunately that's all let down by the restrictive MB of RAM onboard, which means running more-intensive apps such as Skype and Angry Birds is a struggle for this phone. The Lumia was announced in September , specifically aimed at developing countries. While Nokia usually employs a "higher is better" scheme, where the higher the number the better the phone, the Lumia outdoes the Lumia in one respect: its larger 4-inch screen.
While that may be all well and good, the limited storage at just 4GB will definitely be filled up pretty quickly. While it may be extremely cheap, the isn't that much more and despite the 0.
Nick Hide , Jessica Dolcourt Feb. Nokia Lumia Icon A Verizon exclusive, the Nokia Lumia Icon stacks up some impressive specs, including a 5-inch display, quad-core chipset, and megapixel camera. Nokia Lumia The first Windows Phone with a quad-core chipset a 2. Nokia Lumia Nokia's budget version of the , the Lumia scales back the high-falutin' specs with more modest -- and more affordable -- features. There's still the vast 6-inch display, but at p HD resolution instead of p.
Nokia Lumia With its megapixel camera sensor, Nokia's Lumia is Nokia's new standout smartphone. Then again, no other smartphone promises as much photographic horsepower, not even Samsung's megapixel Galaxy S4 Zoom. Nokia Lumia Its 4. An affordable Windows Phone device equipped with the latest update, the is affordable off-contract in emerging markets, though there's a trade-off when it comes to screen quality.
Nokia Lumia Before the burst onto the scene, the Lumia was the starting point for Nokia's flagship series -- the highest-specced, most expensive mobile it makes. Our sales teams and partners delivered a strong start to the fiscal year. In our commercial business, customers continued to choose the Microsoft Cloud. We again saw healthy growth in our Azure consumption-based business and increased usage across products such as Teams and Power Platform as Satya reflected in his comments.
In our on-premises business, annuity performance in Office and Server benefited from a greater than expected mix of contracts with higher in-period revenue recognition. And in LinkedIn, the Talent Solutions business continued to benefit from an improved job market. In our consumer business, Windows OEM performance was better than expected in a growing PC market, despite ongoing supply chain constraints. We also saw positive demand signals for Windows 11 ahead of launch, with nearly all devices built this quarter eligible for upgrade.
Microsoft subscription growth drove Office consumer results. Advertising market growth drove another strong quarter in LinkedIn as well as Search and News advertising. And in Gaming, we were able to ship more Xbox Series X and S consoles than expected, even as demand continues to exceed supply. This quarter, growth was impacted by fewer large, long-term Azure contracts, which are unpredictable in their timing.
Excluding the impact from the change in accounting estimate for the useful life of server and network equipment assets, Microsoft cloud gross margin percentage increased roughly 4 points driven by improvement in our cloud services, particularly in Azure and Office , partially offset by sales mix shift to Azure. With the weaker US dollar, FX increased total company, Productivity and Business Processes, and Intelligent Cloud revenue growth by 2 points, in line with expectations.
More Personal Computing revenue growth was increased by 1 point from FX, less favorable than expected. FX increased COGS by 1 point, in line with expectations, and had no impact to operating expense, slightly more favorable than expected.
Excluding the impact of the change in accounting estimate discussed earlier, gross margin percentage increased roughly 1 point driven by improvements in cloud services noted earlier, partially offset by the sales mix shift to cloud. Excluding the impact of the change in accounting estimate, operating margins expanded roughly 4 points year-over-year. Now to our segment results. Demand for our advanced security, compliance, and voice offerings drove continued momentum in E5 revenue this quarter.
Excluding the impact of the change in accounting estimate, gross margin percentage increased roughly 2 points driven by improvement across all cloud services. Next, the Intelligent Cloud segment. Strength in our annuity business was driven by healthy demand for our hybrid offerings that include Windows Server and SQL Server running in multi-cloud environments and higher in-period revenue recognition, including benefit from annuity purchasing ahead of the Windows Server launch.
Excluding the impact of the change in accounting estimate, gross margin percentage increased roughly 2 points driven by improvements in Azure, partially offset by sales mix shift to Azure. Now to More Personal Computing. The deferral was lower than expected as OEMs prioritized upgrade-eligible device builds early in the quarter. Gross margin percentage decreased roughly 1 point year-over-year, driven by a sales mix shift to gaming hardware.
Now back to total company results. Our capital investments, including both new data center regions and expansion in existing regions, continue to be based on significant customer demand and usage signals. As a reminder, we are required to recognize mark-to-market gains or losses on our equity portfolio.
First, the outlook we give, unless specifically noted otherwise, is on a US dollar basis. Second, my remarks for the next quarter do not include the impact from the Nuance acquisition, which we now expect to close by the end of Q2 or early Q3. In our commercial business, our differentiated market position, compelling solution portfolio, and consistent execution should drive another strong quarter. Commercial bookings growth should again be healthy but impacted by modest growth in the Q2 expiry base and the normal quarterly volatility from large, long-term Azure contracts previously discussed.
Microsoft cloud gross margin percentage should decrease roughly 2 points year-over-year. Excluding the impact of the change in accounting estimate previously discussed, Q2 gross margin percentage will increase roughly 2 points driven by continued improvement across our cloud services, despite revenue mix shift to Azure. And, on a dollar basis, we expect capital expenditures to be roughly in line with last quarter, as we continue to invest to support growing demand.
Now to FX. Based on current rates, we expect FX to increase revenue at the total company and all individual segment levels by approximately 1 point and have no impact on total COGS or operating expense growth. Next to segment guidance. In Office commercial, revenue growth will again be driven by Office , with healthy seat growth across customer segments and continued momentum in E5.
In our on-premises business, we expect revenue to decline in the high-teens, consistent with the ongoing customer shift to the cloud. In Office consumer, we expect revenue to grow in the mid-teens, with continued momentum in Microsoft consumer subscriptions. And in Dynamics, we expect revenue growth similar to Q1 driven by strength in Dynamics , including continued momentum in Power Apps.
Revenue will continue to be driven by Azure which, as a reminder, can have quarterly variability primarily from our per-user business and from in-period revenue recognition depending on the mix of contracts. In Q2, we expect healthy, broad-based growth in our Azure consumption business, consistent with recent trends. And our per-user business, while continuing to benefit from Microsoft suite momentum, should see a moderation in growth rates given the size of the installed base.
In our on-premises server business, on a higher prior year comparable, we expect revenue growth in the mid-single digits, driven by continued demand for our hybrid solutions. And in Enterprise Services, we expect revenue growth to be in the high single digits. In Windows commercial products and cloud services, customer demand for Microsoft and our advanced security solutions should drive low double-digit growth. In Surface, we expect revenue to decline in the single digits as we continue to work through supply chain uncertainty particularly in our premium devices.
In Search and news advertising ex-TAC, we expect revenue growth in the low to mids. If supply chain uncertainty reduces advertising budgets, our results would be negatively impacted. And in Gaming, on a high prior year comparable that included the launch of our new consoles and strength across Xbox content and services, we expect revenue growth in the high single-digits. Console sales will continue to be impacted by supply chain uncertainty.
And in Xbox content and services, we expect revenue growth in the mid-teens with strong engagement on the Xbox platform, in a holiday quarter that will include several AAA title launches. Now back to company guidance. In other income and expense, interest income and expense should offset each other. In closing, we are off to a strong start in FY22 with tremendous opportunity to drive sustained, long-term revenue growth. We remain focused on growing high value usage across our differentiated Microsoft cloud offerings and delivering exciting new consumer experiences with Windows 11, Surface, and our Xbox gaming platform as we enter the holiday season.
Our consistent approach to investing for these and other future opportunities, while continuing to deliver solid operating performance, will drive strong results throughout FY22 and beyond. Out of respect for others on the call, we request that participants please only ask one question. Operator, can you please repeat your instructions? Operator Direction. Thank you, guys, for taking the question and congratulations on another remarkable quarter. Can you talk to us about how you think about sizing that opportunity in terms of the programable edge, and maybe help us understand the Microsoft architectural approach versus perhaps some of the competitors coming into the marketplace from the CBN perspective, who are talking about the competitive differentiation by having more of a last mile solution?
Can you help us kind of understand the differentiation in those approaches? In other words, when we talked about hybrid computing even five years ago, the idea was always that we will always have a cloud, and then we will have a distributed cloud infrastructure for application deployment.
When we think about cloud plus edge, we even put even the multi-cloud control plane in there, right? When I think about what is going to be key in such a distributed world is having that full suite of application infrastructure, right, all the way from the management and security control plane, something like Azure Active Directory managing the security principles and identities, and to management control planes like Azure Arc.
And so, we feel well-positioned for it. And I think that the multi-cloud, multi-edge world is sort of really how we build Azure in the first place. Thank you, guys. Operator, next question, please. Can you just, maybe anything else you would call out there? Our execution on that was actually quite good, very good renewals, very good recapture rates, very good add-ons, meaning you sell outside of the normal pattern.
And so, I feel very good. The day-to-day execution of Azure commitments actually was very consistent. The volatility comes with some of the bigger things, and a lot of them in Q4, less on a comparable basis in Q1. And that happens from time to time. And yet, you put up a Windows OEM number that blew away your guidance.
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