When Microsoft released their FY 16 Q4 numbers they admitted that phone revenue had plummeted 71%, but did not reveal exactly how many handsets were sold, breaking a long-standing Nokia and Microsoft Mobile tradition. In their 10-K filling however they have finally come clean and revealed:
Phone revenue decreased $4.2 billion or 56%, as we sold 13.8 million Microsoft Lumia (“Lumia”) phones and 75.5 million other phones in fiscal year 2016, compared with 36.8 million and 126.8 million sold, respectively, in fiscal year 2015.
Knowing the earlier numbers (seen in the graph above) we can calculate only 1.22 million Lumia handsets were sold in CY Q2 2016, more than 85% down from the 8.4 million handsets sold in Q2 2015.
As can be seen from the numbers above, until Microsoft decided to retrench Windows Phone shipments were on an upward trajectory, but the change in strategy has resulted in a rapid drop of sales which has caused smartphone numbers to half every quarter since Q4 2015. It’s hard to see how lower shipments are possible, but we would not be surprised by even lower numbers in Q3 2016, though by then selling 100,000 HP Elite x3 would actually make a material contribution.
Do our readers agree that the days of Lumia are effectively over? Let us know below.