Microsoft just had its Q2 earnings calls, which you can read the important bits here. Fortunately, the numbers for Windows Phone aren’t as bleak as some may think, and do hold some fairly good news.
First off, let’s get the bad news out of the way. Revenue from Lumia sales fell 61% from the last quarter. That may look pretty bad from face value, but Microsoft explains it as the ending of a partnership with Nokia. Nokia use to pay Microsoft about $10 per Windows Phone, but now that Microsoft is giving Windows away on phones, those royalties have gone away. Those numbers can also be attributed to lack of a good flagship that many Windows users have been wanting.
Now, on to the good news. Sales are way up, reaching 10.5 million units, which is a 28% increase from 9.3 million the same quarter from last year. That’s very good news as the smartphone industry has only grown 20% compared to previous years, which means that Windows Phone is cutting into iOS and Android’s market share. Microsoft attributes most of this success to low end hardware such as the 535 and 630/5.
Considering the state of flux that Windows Phone is in, where there is no flagship, carrier relations are spotty, and Microsoft does little advertising, I would say that this quarter has been a success.