Microsoft’s FY14 Q4 earnings are out. The company announced today that it sold 5.8 million Windows Phone-based Lumia handsets in the last quarter. But while this is not as much as what Microsoft had shipped the last time — 7.4 million units — the company won’t be bummed about this.
The stats suggest that 22 percent fewer Windows Phone smartphones were sold in the last quarter which ended on June 30th, 2014. But as you might recall, the company completed the acquisition of Nokia in April. Microsoft began selling Lumia handsets on April 25th.
Therefore, the figures that you are reading reflects the post-April 25 performance. The company lost 24 days in the quarter consisting of 90 days. Microsoft would have managed to sell 7.9 million handsets in the quarter if it weren’t for those 24 days. Hence, Windows Phone is indeed reflecting a gradual growth quarter after quarter.
Microsoft reported a $1.99 billion in phone hardware revenue during the quarter, with an operating loss of $692 million. This explains why Microsoft needed to cut costs and lay off so many employees — who were acquired as part of the deal with Nokia.
Microsoft also reported a total of 30.3 million non-Lumia phones sold following the completion of the Nokia acquisition. “Low price point devices drove a majority of the Lumia Smartphone volumes. Non-Lumia phone volumes performed in line with the market for this category of devices,” Microsoft added.Further reading: Lumia, Windows Phone