14 DAY TRIAL // Microsoft has just announced its fiscal Q2 2016 results, and while most of the numbers prove the company has improved a lot in many areas, we can't say the same thing about Windows Phone.
The Redmond confirmed it had sold 4.5 million Lumia smartphones during the recent fiscal quarter, which is not even half of the handsets sold in the same period a year ago when Microsoft announced it sold 10.5 million Lumias.
On a more positive note, Microsoft’s unveiled that Surface and Xbox sales surged especially during the holiday season:
“It was a strong holiday season for Microsoft highlighted by Surface and Xbox. Our commercial business executed well as our sales teams and partners helped customers realize the value of Microsoft’s cloud technologies across Azure, Office 365 and CRM Online,” said Kevin Turner, chief operating officer at Microsoft.
According to the earning release FY16 Q2 document published today, Microsoft knew it would sell fewer Lumia smartphones during this period since it changed its strategy. Due to the small number of Lumias sold, phone revenue declined by 49% in constant currency.
On the other hand, Surface revenue increased by 29% in constant currency driven by the launch of Surface Pro 4 and Surface Book.
The rumored Surface Phone can't save an entire OS
Since Microsoft has decided to launch a smaller number of Lumia smartphones this year, the situation won't improve for the company's mobile division.
Rumor has it that Microsoft plans to release a Surface Phone sometime this year, but the device will probably be debuted as a vanity product that will find its place in the private collections of those who still favor Windows Phone over other mobile platforms.
Microsoft is expected to launch another Windows 10 Mobile smartphone in the next couple of weeks. Lumia 650 has already been listed at many European retailers, and it's been confirmed by carriers, so it's just a matter of time until the device goes official.