During the Microsoft earnings call yesterday, it became apparent that for Windows Phone, the earnings were a mixed bag. However, if you dive in a little deeper it will start to make sense what is going on with their earnings and why there is no need to jump on the panic button just yet as a Windows Phone user and fan.
First, let’s take a look at the good news. In the last quarter which ended in September, Microsoft globally sold 9.3 million Lumia devices. This up over 5% from the same quarter last year and clearly indicates things are going in the right direction. A nearly complete refresh of the phone lineup, significant marketing and market expansion has all contributed to this growth and while we don’t know the specific numbers for specific markets, it is an indicator that Microsoft is making gains.
For Microsoft, this translated into $2.6 billion in revenue from Windows Phone. That’s an impressive number and represents 11% of the total revenue the company generated last quarter of $23.2 billion. This is very much a positive.
But let’s all take a dose of reality with this number. Apple sold 10 million iPhone 6 units in its debut weekend. There is a reason I call Windows Phone the Little OS That Could. It is little, very little in the overall market as I’ve shared in the past. There is along way to go, a lot of mind and market share to capture but things are pointing in the right direction.
Now let’s take a look at the bad news – at least on the surface.