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Tuesday, 27 January 2015

Windows Phone rev is down but Lumia sales top 10 million for the holiday

Microsoft's FY2015 numbers for Q2 are just going up, and the numbers for Windows Phones are a bit complicated.
Revenue itself for Windows Phone is down a massive 61% from the last quarter. However, before we declare everything a failure for Microsoft, they explain away that number from the loss of $650 million from Nokia. The agreement had Nokia paying Microsoft per quarter, but that venture has since terminated. In other words, since Microsoft took over the Nokia mobile division, it can no longer collect that lump sum of money since they are now their own customer.
Interestingly, Lumia phone sales are up, both for year-over-year and sequentially from last quarter.
Microsoft sold 10.5 million Lumias driven "primarily by sales of affordable smartphones". By comparison, Microsoft sold 9.3 million Lumias last quarter, gaining 1.2 million more in sales over the holiday season.
Microsoft's numbers are not impressive when compared to Google or Apple. However considering the gap between Windows 8.1 to Windows 10, and the lack of a new flagship Lumia this holiday these numbers suggest that Windows Phone is not yet entirely dead. Indeed, Q2 FY 2015 could be understood as one of the worst case scenarios for Microsoft and yet they managed to forge ahead.
Assuming Microsoft can hold onto to these numbers until the release of Windows 10 and new flagship hardware, Windows Phone is still in the race.

Image & News Courtesy Windows Central

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