Microsoft has released its earnings report for its FY’15 Q3 or what we normally know as Q1, 2015. There is not much to cheer about in terms of sheer number of Lumias sold. The earnings report mentions that 8.6 million Lumias were sold in Q1, 2015.
Phone Hardware revenue was $1.4 billion in the third quarter of fiscal year 2015, as we sold 8.6 million Lumia phones and 24.7 million non-Lumia phones. We acquired NDS in the fourth quarter of fiscal year 2014.
Phone Hardware gross margin was $(4) million in the third quarter of fiscal year 2015. Phone Hardware cost of revenue, including $147 million amortization of acquired intangible assets, was $1.4 billion.
In Q4, 2014 Microsoft sold 10.5 million Lumias, its highest quarterly Lumia volume ever. But one can’t ignore the fact that Q1 2015 has been historically a seasonally weak quarter. Margins have gone down to worrying levels thanks to low-end focus and low-end devices making majority of the sales.