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Microsoft's Windows Phone revenue "abysmal," $613 million at best

Posted: , by Victor H.

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Microsoft's Windows Phone revenue
Microsoft's annual report for the company's fiscal 2011 reveals more than what is on the surface – an interesting tidbit about Windows Phone revenue seems to be hiding under the Entertainment and Devices Division section. With a total of $8.716 billion and a reported revenue from Xbox 360 alone standing at $8.103 billion, the biggest Windows Phone revenue one could end up with by a simple subtraction is the “abysmal” $613 million, Seattle Pi concluded.

This would put Zune, Mediaroom, Surface and hardware revenue at close to zero, which – of course – seems unlikely, so chances are that the final sum is even lower for WP. In addition, we also have to count the fact that Redmond's fiscal year starts in mid-2010, a time when Windows Mobile was the only platform available from Microsoft, so a big part of that should come from Microsoft's older mobile OS. Bottom line is that possibly the final sum is much lower than the $613 million maximum – a result which confirms Microsoft's own Steve Ballmer's words about WP market share which “has gone from very small to very small.”

At the same time, though, reports showed that customer satisfaction from the platform was on par with other contemporary operating systems like iOS and Android. Windows Phone got 57% consumer satisfaction, slightly less than the iPhone's 70%, but even more than Android which conquered 50% of users' hearts. 

While that confirms what we've previously heard about the slow start of the platform, we wouldn't blow this out of proportion – Microsoft has pretty good outlook with the first Nokia Windows Phone devices coming later in the year, and Skype in its portfolio. Will this be enough to put the platform on track with iOS/Android which are far ahead in the smartphone race? Only time will tell, but you can also share your opinion in the comments below.

source: Seattle PI via WPCentral

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posted on 01 Aug 2011, 07:15 8

1. remixfa (Posts: 13902; Member since: 19 Dec 2008)


Bah. Android's first year wasnt stellar either. MS is still working out some issues and adding missing features. When mango & nokia's phones come out I expect a full on push on all carriers and in advertising. Year two will be a deciding factor if its going to take off or not since all of MS's "big guns" come out in either Xmas of this year or Q1 of next. This is more of a "soft launch" period.

posted on 01 Aug 2011, 07:49

2. Heatfan316 (unregistered)


Their phones need more features and better specs that's what sells, how do you expect to run with competition, no front facing camera, last year's processor and no flash capabilities they better step it up, the numbers don't lie hopefully the new phones running mango will change this especially if they run on Lte, the more competition the better.

posted on 01 Aug 2011, 07:52 3

3. remixfa (Posts: 13902; Member since: 19 Dec 2008)


the mango update fixes all those problems if the rumors are correct... exept maybe flash

posted on 01 Aug 2011, 08:15 3

6. captn3x (unregistered)


your right, big specs like dual cores and 4G are what sells phones however if you read the reviews of those 50% of Android users that are unhappy most are unhappy due to poor battery life......which is caused by higher specs. Higher specs are a 2 edged sward. Windows runs faster and smoother on 1 GHz processors than Android runs on any of the new chips. I am an Android user but am planning on jumping to WP7 when Verizon lands a mango device with a keyboard. Another thing to take into consideration is that the Iphone is the best selling phone by far and it is not running earth shaking hardware.

posted on 01 Aug 2011, 08:23 2

7. remixfa (Posts: 13902; Member since: 19 Dec 2008)


the current crop of WP7 phones run on the first gen snapdragon core. They have horrible battery life. That was one of my biggest complaints about the HD7 I had. If you use it a lot, it lives on a charger.

And thats huge concidering WP7 doesnt multitask like Android does or do a lot of the other things Android does that takes power. Hmm.. maybe android is a lil more battery friendly than some people want to give it credit for. Of course, the HD7 came with an underwhelming battery too.


Most people that complain about android have low end sets which also have small batteries and dont work as well.

posted on 01 Aug 2011, 08:25 1

8. remixfa (Posts: 13902; Member since: 19 Dec 2008)


oh, forgot to mention, the iphone4 runs on a samsung hummingbird chipset which is also found in samsung's Galaxy S. It is far and away the strongest single core chip on the market as well as the best single core for battery usage.

posted on 01 Aug 2011, 09:18 1

9. tinarallia16 (unregistered)


SAMSUNG Hummingbird and Apple A4 have been conceived by Intrinsity (company owned now by Apple) but produced by SAMSUNG.

posted on 01 Aug 2011, 09:33

10. Laurynas (unregistered)


Wrong!

Apple's A4 SoC contains PowerVR SGX 535 GPU.

Samsung's Hummingbird SoC contains PowerVR SGX 540 GPU.

posted on 01 Aug 2011, 09:57 1

11. remixfa (Posts: 13902; Member since: 19 Dec 2008)


yes, that is the 3D controller for the chip, not the chip itself. The chip is the same, samsung just used a slightly newer and more powerful version of the PowerVR chip... which is why I always state that the Hummingbird in the GalaxyS is slightly stronger than the hummingbird in the iPhone4.

So no, Im not wrong.

But since u stated it that way, Imma have to assume your Taco under a new name... pretty sad there Taco. Just be an idiot under your own name, you dont have to use fake names to double up on your idiocracy. :)

posted on 01 Aug 2011, 09:58

12. remixfa (Posts: 13902; Member since: 19 Dec 2008)


And I love that your attacking me for DEFENDING the iphone against captn3x's mistatement about iphone hardware.

you really are something "special".. lol

posted on 01 Aug 2011, 10:27

16. Laurynas (unregistered)


I'm not a fan of any brand.
And I'm not attacking you (maybe it is war in your head).

posted on 01 Aug 2011, 10:03

13. HTCiscool (Posts: 449; Member since: 16 Jul 2011)


its idiocy, idiocracy is a group of idiots

(P.S. I'm not Taco :)

posted on 01 Aug 2011, 15:48 1

22. remixfa (Posts: 13902; Member since: 19 Dec 2008)


lol.. if im assuming its one poster under another name posing as a group, idiocracy would have been the correct terminology.. lol

Are you sure ur not taco? lol. A pro Android name is just what he needs to throw someone off.. until he posts.. lol
And you could never be taco. you corrected me on something that required knowledge.. or at least the ability to look something up. that disqualifies you immediately. :)

and no laurynas, if your not taco than i appologize. Him and Miz have been known to create fake accounts to "bolster" people who agree with him.. lol

posted on 01 Aug 2011, 10:25

14. Laurynas (unregistered)


Yes, it may be a true that architecture of A4 is the same as Hummingbird, but remember that thise two SoCs contains two different GPUs and that mean thise two "packages" are not the same!

So, your statement that "...the iphone4 runs on a samsung hummingbird chipset which is also found in samsung's Galaxy S." is WRONG!!!

posted on 01 Aug 2011, 10:57

18. dandirk (unregistered)


imo... Not that wrong really, technically yes. Yet the difference would only be justified when comparing the affected portion... 3D graphics and software optimization.

That is like saying you can't assume the comparison of a toyota vs ford is the same as toyota vs mercury.

btw you pretty much can... They do this all the time in the auto industry, have 2 differently marketed products that are virtually the same.

The big difference is this case is the OS, because each is obviously running different software sub-systems.

But you can make the small leap that hardware wise they are so similar that performance differences can be largely isolated to OS/software... well except for functions controlled by the video chip which is different.

posted on 01 Aug 2011, 11:16

19. Laurynas (unregistered)


remixfa's statement was:
"...the iphone4 runs on a samsung hummingbird chipset which is also found in samsung's Galaxy S."

But it is wrong because thise two "packages" (A4 and Hummingbird) contains two different GPUs.
And that mean SoC from iPhone 4 CAN'T be found in Samsung Galaxy S because they are different (contain different components in our case GPU)!

posted on 01 Aug 2011, 15:51

23. remixfa (Posts: 13902; Member since: 19 Dec 2008)


thats like saying the 370z sport and 370z touring are 2 completely different cars when they are 95% the same. The ONLY difference between them is that the samsung version in the galaxyS has an ever so slightly newer power VR chip. Its a modest upgrade from the one in the i4 chip because the i4chips got produced slightly sooner than the samsung chips.


So, if its not an attack, why is it in caps? lol

posted on 02 Aug 2011, 10:31

25. Laurynas (unregistered)


Doesn't matter how big or how small is the difference between thise two SoCs, but it is the fact that there ARE difference!
And that's mean your statement: "...the iphone4 runs on a samsung hummingbird chipset which is also found in samsung's Galaxy S." is WRONG because thise two SoCs are different!

So, the next time think twice before arguing and insulting!

posted on 01 Aug 2011, 08:13 1

4. momo34 (unregistered)


Windows Mobile/Windows Phone could not even thrive in the sea of feature phones even before iPhone and Android existed. WP7 is a dim future.

posted on 01 Aug 2011, 14:26

21. jroc74 (Posts: 3978; Member since: 30 Dec 2010)


Well...for smartphones before the iPhone launched RIM and Win Mo were at the top, cant remember which one was #1 in market share.

the iPhone launched and had Win Mo on the ropes....which is amazing since Win Mo was on many phones and many carriers also...Android launched and put them on the mat.

posted on 01 Aug 2011, 15:51

24. remixfa (Posts: 13902; Member since: 19 Dec 2008)


RIM was.. by far.

posted on 01 Aug 2011, 08:14 1

5. asbd (unregistered)


Windows Mobile/Windows Phone could not even thrive in the sea of feature phones even before iPhone and Android existed. WP7 has a dim future.

posted on 01 Aug 2011, 10:25

15. dandirk (unregistered)


Personally I don't really see room for 3 major OS's, but maybe 4 at MOST.

Just like with desktop/laptops there are 3 and two of them comprise less then %20 of the market. Granted this is a different situation already since already the 2 big dogs are pretty close in market share.

I will add though that iOS/Android is already ~70% of market share, so comparison to desktops/laptop market is pretty close, except there is more choice for mobile users in general (instead of 80-85% windows desktop market).

I think MS was waaaayyyy toooo late to the party. Its not over for them, I think they have a year or 2 but if they don't make it then, they are toast. They need more phones and more apps, more connectivity. But I think they will still be #3 unless they can completely replace RIM for corporate customers.

posted on 01 Aug 2011, 10:51

17. snowgator (Posts: 3159; Member since: 19 Jan 2011)


When sales for the first set of W7 devices were rumored to be bad, is it a shock that the profits are low? This isn't news. This is expected. Microsoft refuses to force W7 into the marketplace unprepared. They released their first set of devices without a ton of options that were completely standard on other OS's. The first update was a major one, but still not in the ballpark of Android, iOS, or even Blackberry OS. Mango addresses this and more. The fact that they are putting out quality and smooth OS without problems should pay off. That, and overcoming the bad taste that Windows Mobile left. 2012 will be a breakout year for W7. If that get to 10-15% of the OS market, they are right on the mark.

posted on 01 Aug 2011, 14:05

20. fleanote (Posts: 50; Member since: 14 Jan 2011)


Something trivial, but definitely lends to my opinion on WinMo7, is the home screen and teh top right 'arrow' to move between panels. I don't like that to display that area, yuo 'blank' 1/4 of teh width of those gorgeous gorilla glass screens. You've got this wide display and the interface is making it smaller.

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