Home Latest Posts Analysis Microsoft Q2 2016: Lumia & Nokia Phones Revenue declines 71%

Microsoft Q2 2016: Lumia & Nokia Phones Revenue declines 71%


Lumia sales figure in Q1 2016 hit the bottom at only 2.3 million Lumias sold. That was some decline from 8.6 million Lumias sold in Q1 2015. Now in Q2 2016, while Microsoft has not shared the sales figure, Phone revenue has declined by 71%. In contrast Microsoft was able to sell 8.4 million Lumia smartphones in Q1 2015.

It is not clear what percentage of the Phone revenue decline can be attributed to Lumia or Feature Phones, as there are no details provided by Microsoft.

Revenue in More Personal Computing declined 4% (down 2% in constant currency) to $8.9 billion, with the following business highlights:

  • Windows OEM non-Pro revenue grew 27% (up 27% in constant currency), outpacing the consumer PC market, and Windows OEM Pro revenue grew 2% (up 2% in constant currency)
  • Surface revenue increased 9% (up 9% in constant currency) driven by Surface Pro 4 and Surface Book
  • Phone revenue declined 71% (down 70% in constant currency)
  • Xbox Live monthly active users grew 33% year-over-year to 49 million
  • Search advertising revenue excluding traffic acquisition costs grew 16% (up 17% in constant currency) with continued benefit from Windows 10 usage