In Microsoft’s latest earnings report, it seems that the company’s Windows Phone business is on a decline, which we expected following Microsoft’s announcement that it will be refocusing its Windows Phone efforts in the future.
The report notes that overall Windows Phone revenue has declined by a substantial 68%. The revenue decline has been attributed to a focus on lower price point Lumia devices, and an overall decline in non-Lumia sales, which total 19.4 million. Microsoft did however sell 8.4 million Lumia smartphones this quarter, growing more than 10% from the same quarter last year.
“Decline driven primarily by prior year recognition of $382 million from the conclusion of the commercial agreement with Nokia, and a decline in royalty revenue” – Microsoft
Moving forward, Microsoft will focus its Windows Phone efforts on three areas; flagship, value, and business devices. The company has also reassured those concerned that if OEMs don’t commit to producing and selling Windows-based phones, Microsoft will.
Let us know in the comments section below your thoughts on the Windows Phone situation. Are you worried about this decline, or does it not matter considering Microsoft will still sell its own Windows phones?