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Microsoft earnings: Surface sales up, Windows Phone sales down

Written by Andre Yoskowitz (Google+) @ 23 Apr 2016 11:57 User comments (3)

Microsoft earnings: Surface sales up, Windows Phone sales down Earlier this week, Microsoft stated their Q3 2016 fiscal earnings report and unsurprisingly Windows Phone sales fell again while Surface sales increased.
Overall, the company made $3.8 billion in net profit on $20.5 billion in revenue, down year-over-year but still near record highs for the company.

Surface revenue was up large, at $1.1 billion for the quarter, 61 percent growth year-over-year, thanks to strong sales of the new Surface Book and Surface Pro 4.

On the other end of the spectrum, Windows Phone sales nosedived, with Microsoft selling just 2.3 million Lumia phones during the quarter, down 73 percent year-over-year. Revenue fell 46 percent for the phones.

Source:
Microsoft

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3 user comments

124.4.2016 4:02

The phone business was always going to e tricky, with IOS and Android, although windows phones are not bad, the cheap Chinese phones just have there own skins over android which means no Windows O/S penetration. So all MS can do is use these Lumia as the main selling tool, which against cheap good quality Chinese phones want work

225.4.2016 15:00

I like Windows phones, but MS has no functional phone strategy right now. Its two flagship phones don't work on Verizon. And those flagships have nothing that sets them apart other flagships. (Continuum is interesting but not terribly useful in the US where people have desktops, laptops and tablets already.) Add in a poor app library and it's no surprise that their phones are tanking.

I like the interface, and I hope their Surface team can do better with the phone strategy than their Lumia team did. If they come out with an interesting Surface phone, I'll be back on the Windows Phone bandwagon. But until then, I'm stuck using my S6 Edge because there aren't any good Windows phone options.

325.4.2016 15:02

On the Surface end of the discussion, it's no surprise that their revenues are up 60%. That's what happens when you come out with a good product that sets itself apart. Hopefully the Surface team can do just as good a job with phones now that they are in charge.

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