Microsoft Sold just 2.3 Million Phones Last Quarter

It has started to appear that whatever hopes Microsoft had still left of making a mark with Windows 10 Mobile are quickly evaporating into nothingness. Though, the latest earnings report put the Surface division into the black once again, it has been the costly Lumia business which once again takes the spotlight.

To put it plainly, last quarter saw Microsoft moving just 2.3 million Lumia smartphones, a mighty 73 percent decline over the same quarter of previous year: 8.6 million. Even in the last quarter, Microsoft sold 4.5 million phones.

The sales of non-Windows units stood at 15.7 million units, down from 24.7 million of a year ago. This caused a 47 percent drop in revenue for the phone division, taking it to just $662 million.

Surface continued to exceed expectations, giving Microsoft all the more reason to make a new start in the smartphone business with that brand name. Exact sales figures are not given, but the division saw a revenue of $1.1 billion in the final fiscal quarter, a 61 percent increase over the past year.

Windows division declined, but by a less than expected 2 percent only. Revenue from Azure grew a major 110 percent over the past year, while Office 365 grew to 22.2 million subscribers, up from 12.4 million.

Overall, Microsoft reported a net income of $3.8 billion on a $20.5 billion revenue, which is impressive but probably won’t be able to please investors who were expecting record margins. All of which means that people are getting more impatient with what Microsoft is hoping to achieve with its home division, which ever since its arrival has only brought tears.