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.