If you bet on Microsoft, you are not going to ask anymore, 'Hey, where is the innovation?' The challenge going forward is how do we keep up with it.

Phones remain a critical component of the Microsoft device portfolio and an important piece of our mobility strategy, but a restructuring is in order.

I'm a competitive person by nature, and I have been in competitive companies, and I love to compete - joining a company where, certainly, there is a real fire in the belly to compete and bring that energy is something I look forward to.

Going forward, we will focus on building the very best Windows phones on a quicker timeline. We will also focus on the channels and markets that offer the best returns. This is a similar approach to the one we have taken with Surface, which has been very successful.

To align with our new strategy to enhance the Windows device ecosystem, we are integrating Microsoft Mobile Device Sales (MMDS) underneath the Consumer Channels Group (CCG).

As a team, we have a lot of work ahead of us in FY16 and beyond, but I am confident that, working together, we will make Microsoft a leader in the mobile-first, cloud-first world.