Microsoft Sold 8.4 Million Lumia Devices In The Q4 Compared To 7.5 Million Last Year

Office 365 Lumia

Microsoft today announced their earnings release for Q4 FY15. Phone Hardware revenue decreased $748 million or 38%. Gross margin decreased $158 million, due to lower revenue. Also, Windows Phone revenue decreased $552 million or 68%, mainly due to $382 million of revenue recognized in the prior year at the conclusion of the commercial agreement with Nokia, and a decline in royalty revenue.

· Lumia phones revenue declined, driven by a mix shift to lower price point devices. We sold 8.4 million Lumia phones in the fourth quarter compared to 5.8 million in the prior year (+1.7 million pre-acquisition).

· Non-Lumia phones revenue declined, driven primarily by lower volumes. We sold 19.4 million non-Lumia feature phones in the fourth quarter compared to 30.3 million in the prior year.

· Phone Hardware revenue included an unfavorable foreign currency impact of approximately 4%.

Looks like Microsoft sold many low-end Windows Phone devices which caused decrease in revenue. Another bitter truth is that Microsoft didn’t have any flagship device on sale which would have offset the declining revenues.

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