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Lumia Sales plummet to 4.5 million in One Year. Dead-End or was it expected?

Microsoft has announced its Earnings for Q4 2015 and Lumia Sales figures are rather disappointing. The Lumia sales volume has seen a steep decline from one year ago, when it had touched its peak at 10.5 million. This quarter Microsoft was able to sell only 4.5 million Lumias.

Doom, Dead-end or was it expected??

Microsoft under Satya Nadella changed the underlying Windows Phone strategy followed by Ballmer and Co before Nadella took the helm. So, it was no more the volume growth strategy followed by Nokia and Microsoft, when they were partners for growing “Windows Phone Eco-system” under Elop and Ballmer and only Microsoft later when it bought Nokia’s D&S division. Under Nadella however, not only harsh decisions like laying off 7800 ex-Nokia employees and writing off the Nokia D&S purchase were made but also Microsoft moved away from the earlier strategy of growing the Lumia volume at any cost even when it meant bleeding money.

The intense competition in Smartphone arena has made the matter worse for Windows Phone and while one year back, competitive offerings like Lumia 535 brought huge volume for Lumia, Microsoft under Nadella seemed not interested to bring such competitive devices at right prices. It may be argued that profitless growth isn’t sustainable but sales volume decline from 10.5 to 4.5 million also doesn’t signal “sustainability”. So, it was largely expected that Lumia sales will decline but perhaps none expected mere 4.5 million sales from the Holiday quarter. With only Lumia 550 as the volume driver in Lumia X50 range, Microsoft has though sent enough signals to market that it is not willing to fight against Android vendors that bring much better hardware at similar pricing. So, one shouldn’t be shocked if this downward trend continues in even coming quarters of 2016.

What happens next?:

Microsoft’s CEO Satya Nadella has always maintained in his interviews how he and his team are committed to  make Lumia devices if no other vendor will make it and how Windows 10 Mobile is one node of the entire “mobility of experience”. So, we still think Microsoft will keep pursuing Windows 10 Mobile and Lumia devices and there may be one or two launches in near future. Microsoft is also working on Lumias based on Snapdragon 820 and then there is the Surface Phone. So, while there may be gloom when sales figures hit us every quarter, Microsoft is all set to bring premium smartphones under Lumia and may be even Surface branded phone in later part of 2016.

The only question that comes to mind is whether Microsoft will still remain relevant for the Mobile world and buyers, when it finally comes with its Surface Phone later this year? It is an uphill task and Microsoft is losing believers at a very rapid pace!!

Nayan has more than 10 years of experience of covering Technology and innovations. He is a big Nokia fan and Tech disruptions aficionado. He loves to review new cool gadgets and writing about Android, iOS, Gadgets and general Technology stuff. He has been associated with other well-known Tech sites WinCentral and GadgetOx since long. He currently sports a Lumia 950 XL and Nexus 5X. Other interests include listening to Nu-Metal Hits and Kick-Boxing. Write to him at Email: [email protected]
  • wallis

    Lack of flagship and stupid exclusive carrier deals don’t help. Here in Australia, Optus have had 950(xl) since early December. But nothing for Telstra, which happens to be the carrier most companies use due to it’s superior coverage. M$ hasn’t realised people change phones not Telco’s.
    If they get surface phone right it will be a game changer. I’m imagining a phone that docks using an iPod style dock or wireless charging pad, and with a monitor, keyboard, mouse, external hard drive, modem etc, becomes my home pc. Same at work. It docks in and connects to my companies servers and apps. At home, I tap it on the pad next to my tv and it becomes my media centre driver, remote or Xbox remote. I sit it on my pad next to my bed and it goes into quiet hours mode and my glance screen turns red. Not only could it drive a keyboard and mouse and monitor, but also tablet displays for a larger screen experience. Let your imagination do the rest.
    Surface needs to be the one device that can replace everything. Third party hardware makers like acer, hp, and dell all need to a part of this and have their own innovations. This, in my opinion, is the future, and only M$ has the OS that can deliver atm. The ability to get it right is another matter.

  • Subham Roni

    I am really missing the nokia era, when they used to deliver best of hardware at a affordable price. They believed in bringing new tech to common people. Microsoft is following apple’s pricing policy with a Beta OS.

  • Jack Grievous

    1. Dead end
    2. Expected
    3. Hopeless

    • Kamal

      I know it is difficult to stay hopeful after such results, but Windows Phone has some life left. It will change names and shape but will exist.

      • Jack Grievous

        Well, I will use it, but I keep my Lumia 1020.

        I just don’t see how it is to compete against android.
        app gap is closing, but not the application gap, which is widening. I
        mean applications outside of software – games etc., like applications
        for hardware (drones, inteligent homes, medicine, car navi…).
        Everything runs on android, and only 50% supports also IOS.

        While I do consider Win10 supperior to android, by far, I don’t see how they could win.

        Lets take an example – the stagefright virus.
        Every android phone can be hacke with an email.
        phones have not been updated. I tested my frieds phones – most of them
        flagships of big brands. After a year all are vulnerable. And there are
        already 2 or 3 know similar issues.

        I would not buy a phone, that can be hacked with a simple mms and with no hope of getting an update any time at all.

        Still – even such a horrible danger did not change the OSs popularity.

        You may judge the people who don’t care, but that’s just the way it is.

        I hope I won’t have to use Android in future, because all alternative will be abandoned. Luckily there is at least IOS.