Microsoft reveals 49% YoY drop in phone revenue in Q4 2015

satya-nadella1

Microsoft has just released its financial results for Q4 2015, or their Q2 2016 Financial Year.

Predictable Windows Phone sales have seen further declines, as Microsoft continued to retrench from the smartphone market.

The release of the Lumia 950, 950 XL and Lumia 550 have predictable not made up for Microsoft leaving many regional markets and also for the high price and extremely limited marketing of the new handsets.

In their press release Microsoft notes that phone revenue has “declined 49% in constant currency reflecting our strategy change announced in July 2015”.

This I suspect is better than expected, with Windows Phone exceeding 10 million devices sold a year ago, suggesting sales will once again be in the 5-6 million range. We await the full numbers in Microsoft’s earning call in 30 minutes.  (update: No, 4.5 million)

It remains to be seen if Microsoft’s others successes can make up for ceding the most important computing platform of the 21st Century, or, as reflecting in falling PC sales,  if the whole company will eventually head the same way as their smartphone business.

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