Microsoft earnings report sees more Lumias sold, but lower revenues
We just covered Apple’s record-setting financial figures, and mentioned at the time how it’s one of two giants in mobile sharing their performance this evening. The other is Microsoft, and the company’s got some mixed figures to report when it comes to its smartphone game.
Microsoft’s problem is the growing popularity of budget-priced Lumia models, which just can’t bring in a whole lot of money individually. And while Lumia sales in terms of units were very strong, growing some 3 million to 8.4M (as opposed to just 5.4M the same time last year), revenues took a dive, dropping 38 percent to $748M.
Looking at the bigger picture, we knew to expect some losses stemming from the company’s big $7.6B Nokia-related write-down, and that’s indeed the case: Microsoft took in total revenues of $22.2 billion, but posts overall losses of about $2.1B. Had the company not had to deal with that impairment, it would be singing a different tune, with close to $6.4B in profit.
While this isn’t very good news for Microsoft by any stretch, we’re at a crossroads for the company, with Windows 10 just about to land and some much higher-end Lumia hardware out over the horizon. Between the two of them, there may be reason to be optimistic about Microsoft’s future performance.