Microsoft's latest quarterly earnings sees major drop in mobile salesBy Robin-Leigh Chetty 22 April 2016 | Categories: news
Microsoft recently released its Q3 2016 earnings report for the financial year. While certain divisions of the company performed well, in particular gaming with a 26% year-on-year increase in active Xbox Live users, the mobile side of the business faltered once again. It's a continuing trend for the company, with a drop in mobile revenue of an estimated 46%, with 2.3 million Lumia-branded devices being sold over the past three months (up until 31 March).
The previous quarter, Microsoft's mobile sales did not fare any better, declining by roughly 54%, according to Engadget. There are, however, still many positives for the company, as its Surfaces sales improved by nearly 61%. Leading the charge in that regard was the Surface Book and Surface Pro 4, according to Microsoft.
These figures are even more impressive, as Microsoft's Surface devices are not available in all the regions that Microsoft operates within. As such, it does put forward the argument that Microsoft should change its approach as far as distributing Surface devices worldwide, as they are clearly one of the company's best performing product segments.
Furthermore, it brings into sharper focus the need for change as far as Windows 10 Mobile and the devices thereof are concerned. The Lumia 950 and 950 XL smartphones have not had the desired impact that Microsoft would have wanted. All is not lost though, as Microsoft certainly has the capacity to create enviable devices as the Surface earnings indicate. Perhaps then, the same approach to design and manufacturing should be adopted for Lumia.
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