According to the company’s latest quarterly report, Microsoft mobile revenue has dipped by as much as 46% thanks to a massive drop in Lumia sales.
Redmond’s phone woes show no signs of abating, and now the company has revealed in its latest quarterly report that Microsoft mobile revenue has dipped by 46%.
The drop comes as a result of the company’s terrible sales figures, which saw 2.3 million Lumia devices sold over the past three months; comparatively, that’s 73% behind what the company managed to ship last year.
Read: What I learned from moving from a MacBook Pro to a Surface Pro 3
While the company is of course still profitable – with a revenue of $20.5 billion and a net profit of $3.8 billion – the company’s downward spiral in mobile revenue doesn’t paint a pretty picture going forward.
The company has struggled to create traction around its newest flagships – the Lumia 940 and 940 XL – which, in conjunction with a buggy Windows 10 Mobile launch, hasn’t instilled great confidence in consumers.
Many hope for a Microsoft to drop the Lumia brand all-together and concentrate on producing a Surface Phone to complement its line of hybrid computers. While rumours indicate we may see three such models, we’ll potentially have to wait until 2017 – time Microsoft doesn’t have.
Comparatively, Microsoft saw growth in its Surface sales, which have grown by $1.1 billion over the past three months – 61% higher than this time last year.
The company’s release of the Surface Pro 4 and Surface Book have largely buoyed the hopes that its mobile devices might follow in the same direction in the future.
In related news, the company reported a 26% growth in Xbox Live monthly active users – a trend which may not continue following the announcement that Microsoft have officially discontinued the Xbox 360.
Read: Microsoft discontinues the Xbox 360
What are your thoughts on Microsoft mobile revenue? Be sure to let us know in the comments below!
Follow Bryan Smith on Twitter: @bryansmithSA
Source: Microsoft
Via: Engadget
