Lumia sales figure in Q4 2015 was quite low already at 4.5 million. We however told you to expect worse in our POV. And it has touched nadir in Q1 2016 at 2.3 million Lumias sold. Yes, Microsoft was able to sell only 2.3 million Lumias in Q1 2016 and that’s some steep decline from 8.6 million Lumias sold in Q1 2015.
As per Microsoft’s earnings release,
Devices revenue decreased $248 million or 11%, driven by the previously announced change in strategy for the phone business, offset in part by higher Surface revenue. Phone revenue decreased $662 million or 47%, as we sold 2.3 million Lumia phones and 15.7 million other phones in the third quarter of fiscal year 2016, compared with 8.6 million and 24.7 million sold, respectively, in the prior year. Surface revenue increased $398 million or 56%, primarily driven by the release of Surface Pro 4 and Surface Book in the second quarter of fiscal year 2016, offset in part by a decline in revenue from Surface Pro 3.
So, Nokia-branded features phones still brought in volume of 15.7 million. Phones revenue declined by $662 million or 47%. So what is Microsoft doing here?? In words of Microsoft’s top executives Phones are not the focus this year and Microsoft seems to be planning slow and long haul in Windows 10 Mobile with something big coming in 2017. So, this year may still bring worse news for Lumia fans, one may however like to challenge the definition of worse here.