Microsoft sees revenue from Lumia phone sales decline 54% in the third quarter

Microsoft sees revenue from Lumia phone sales decline 54% in the third quarter
The third quarter was a tough one for Microsoft's Lumia phone division. Sales revenue declined 54% on a year-over-year basis, leading to the conclusion that just 5.8 million Lumia handsets were sold during the three month period. That compares to the 9.3 million Lumia phones that were computed to have been rung up last year. It also is a deep decline from the 8.4 million Lumia handsets that were calculated to have been sold in the second quarter of this year.

Earlier this month, Microsoft introduced three new Lumia handsets including the high-end Microsoft Lumia 950 and Microsoft Lumia 950 XL models. Also unveiled was the entry-level Microsoft Lumia 550. The Lumia 950 XL will only be offered by the Microsoft Store, while the Lumia 950 will be an AT&T exclusive. Microsoft decided to go in this direction even though the other top U.S. carriers were said to be interested in both models.

No matter how strong Lumia sales might be in any given quarter, Microsoft makes more money from the licensing of its Android patents to manufacturers of Android phones. There are some who believe that Microsoft is purposely stacking the deck against success for the Lumia models, so that the current regime can start from scratch and produce its own Microsoft Surface Phone.

source: WindowsCentral

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41 Comments

1. zeeBomb

Posts: 2318; Member since: Aug 14, 2014

They'll get better sales in Q4...no worries

6. Rafishant

Posts: 390; Member since: Oct 13, 2015

Microsoft just devastated everything great came from Nokia, on top of that Nokia's brand

13. RajRicardo

Posts: 479; Member since: Feb 28, 2014

D@mn US carriers..they are after Lumias but wont let Sony Z5 series which IMHO is one of the best designed phones this year enter the market. how pathetic.

17. xtplnet

Posts: 61; Member since: Mar 03, 2012

I am sure that With Lumia 950 and Lumia 950 XL there won’t be much change of equation for Windows platform. I am a proud owner of Lumia 930 (Awesome hardware by Nokia!!) from more than a year. Today even after 4-5 years Windows mobile user interface not matured enough to compete with Android and IOS, even Microsoft is aware about it, that’s why they develop apps for IOS and Android first. Lumia 950XL flagship is packed with good hardware inside but, seriously very mediocre design as compared to Samsung, LG and Apple!! Satya Nadella vision “Mobile first cloud first” lacs commitment when they write down (8.2 B$) Nokia!! (Maybe they should refer case study from Lenovo-Motorola deal where Lenovo puts Motorola to play at front...)

2. Cheezwiz

Posts: 443; Member since: Dec 29, 2014

Not a real big shocker since they basically took 18 months off from doing anything remotely resembling the support of 8.1. The real measure will be what happens now that WM10 is about to be released and whether that drives sales in any relevant way. It's not about competing with Android or iOS for MS at this point. It's about having a functional mobile arm of the unified windows platform.

3. bugsbunny00

Posts: 2251; Member since: Jun 07, 2013

lol..come on MS. down the road like a toad.

34. Penny

Posts: 1844; Member since: Feb 04, 2011

For their phones, for sure. They took way too much time off only to reboot once again. Instead of building up features all this time, they've had to redo their work a few times now. Other than phones, they're doing quite well though. Microsoft's stock is at a 15 year high today because their cloud and services strategy is going so well. Perhaps something PA should include in this article so as to break this perpetual negativity the tech blogosphere seems to have for MS.

4. legiloca

Posts: 1673; Member since: Nov 11, 2014

Not surprised at all, they just kept releasing mid tier phones for the past 18 months which left their loyalists or possible new customers unsatisfied or are clamoring for more power and just ended up getting themselves an Android phone or an iPhone..

5. jroc74

Posts: 6023; Member since: Dec 30, 2010

Funny that after MS gets rid of many of the former Nokia employees...this happens. Makes you wonder if the ex employees were part of the design, manufacturing, new ideas team, .

7. Rafishant

Posts: 390; Member since: Oct 13, 2015

You have the clear answer for your question when you see the medicore new Lumia series. They totally lost imaginary Nokia's creativity.

22. benno

Posts: 94; Member since: Apr 17, 2015

Mediocre in the sense that they are better than every other phone on the market? Good point sir, well thought out.

28. Spedez

Posts: 542; Member since: Aug 29, 2014

Quit dreaming pal. Those new phones look cheap and bring nothing extra ordinary to the table.

29. elitewolverine

Posts: 5192; Member since: Oct 28, 2013

Continuum is one and a camera that will once more outdo the rest. There is only so much you can do with a phone.

10. Subie

Posts: 2234; Member since: Aug 01, 2015

They've "introduced" 3 new handsets, but they're still not available. Microsoft needed them 6 months ago. Hope they can turn it around with the new breed, and continuum.

11. pureviewuser

Posts: 501; Member since: Nov 11, 2012

No promotions of their phones prioritising pass for android a nd iOS over their own taking ages to have a new flagship carrier exclusivity in their own home country they've only themselves to blame and I'm a wp owner and fan if they do this with wp 10 they're well and truly FVCKED.

12. cncrim

Posts: 1524; Member since: Aug 15, 2011

Lumina 950 make Microsoft good cool again, and I believe with Continum thing I will give window Mobile 10 a try.

14. rkoforever90

Posts: 405; Member since: Dec 03, 2011

one thing is absence of promotion another is most salesman don't have a clue about windows phone . even if I want to buy a windows phone they will suggest some crappy Samsung,,

15. rkoforever90

Posts: 405; Member since: Dec 03, 2011

anyway lumia 640xl is selling for throw away price in my country I will get one as my secondary phone.

16. killer7D

Posts: 550; Member since: Sep 18, 2014

If Microsoft will not market the new flagships (Lumia 950 and 950XL) properly, they will be out of the smartphone market very soon ..

18. darealist

Posts: 107; Member since: Feb 25, 2015

Only a Surface Phone with full Windows can save their phones. Another iOS and Android clone on the market is pointless.

19. sonisoe

Posts: 440; Member since: May 06, 2009

am seriously thinking of getting a lumia 950xl...

27. Spedez

Posts: 542; Member since: Aug 29, 2014

You should seriously get your head examined.

20. cnour

Posts: 2305; Member since: Sep 11, 2014

Microsoft must stop making phones.

21. janno

Posts: 144; Member since: Aug 19, 2014

Microsoft completely and utterly destroyed Nokia when it tricked it into going with Windows Phone. It destroyed most of it pre-acquisition (thanks Elop!), and whatever was left from it post-acquisition.

30. elitewolverine

Posts: 5192; Member since: Oct 28, 2013

Nokia destroyed itself. They actually were going to go with Android but had none of the bleeding cash they were already suffering to actually do it. Without the exclusive cash infusion from MS they were getting they would have been out of the game long before MS stepped in.

33. kach22

Posts: 153; Member since: Nov 04, 2011

Still defending Microsoft and Elop.. WOW! What a tenacious effort. You may be right but majority of the people believe Microsoft destroyed Nokia and unfortunately majority of the people don't care what you believe. So keep trying to defend... May be someday.... Good luck.

37. elitewolverine

Posts: 5192; Member since: Oct 28, 2013

This isn't trying to defend. This is actually supporting REAL history. I could care less what they believe in the end, it is their ignorance not mine. Before they choose WP, they looked at android for 6 months and knew they couldn't compete with Samsung with the Financial situation they had at hand. Not to mention their Meego/Symbian teams were at odds ends with each other, their OS more out of date on a code basis (not feature). All in all, if they had the cash, they could have stuck it out. But after Samsung, Cisco and a dozen others turned down Symbian's opensource stuff, that was the end. And while you may sell millions of feature phones, that doesn't pay the bills at the end of the day. Without MS cash infusion to produce exclusive WP line, Nokia would have been sold sooner if they flopped with Android.

23. super_cobra

Posts: 8; Member since: Oct 15, 2015

Ouch Microsoft. Xbox hardware was down too.

24. isprobi

Posts: 797; Member since: May 30, 2011

If they are expecting to make up sales with the 950 and 950XL forget it those phones are already a generation behind the current high-end Android and iPhone models. Boring looks, plastic, no stereo front facing speakers, no force touch, no 4K screen ability and lack of apps. Why would I buy them over the competition?

31. elitewolverine

Posts: 5192; Member since: Oct 28, 2013

No 4k screen ability? Everything you mention is not found on a single android phone. I would need an iPhone for force touch and I sacrifice everything great about android. I could get front speakers, from a company that is almost out of the game itself. Lack of apps is solely on devs not MS. 4k screen ability? What we do get, is an OS that doesn't have vulnerabilities like the competition, we get speed even on lightweight hardware. Camera's that even 2yrs+ now are still top cameras. We do get apps that are considered essential at this time, though there is still a gap because 500k apps is 'not enough'. Mainly for me its games.

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