Microsoft Lumia Sales Decline By 73% In Q3, Cloud Services, Surface Phone Sales Compensate

Microsoft Lumia Sales Decline By 73% In Q3, Cloud Services, Surface Phone Sales Compensate
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If it were not for the Surface phones, Microsoft smartphone business would have suffered a serious downfall. Reports of the latest quarterly earnings reveal that the company’s Lumia Windows phone sales are drastically declining with a meagre 2.3 millions Lumia handsets sold compared to 8.6 million sold in the same quarter last year.


This records a sharp fall in the Lumia sales graph by 73 percent. The overall revenue from phone business has reduced by 46 percent, according to reports revealed by The United States Securities and Exchange Commission (SEC) documents. The net income in revenue was reported at $3.8 billion and $20.5 billion for the quarter ending March 31.

While the Lumia business could have solely caused major losses to the Redmond giant, revenues earned through Surface phone sales helped to recuperate the loss. Consistent sales of Surface Pro 4 and Surface Book helped to earn revenue up to $1.1 billion in the third quarter, which marks an increase of 61 percent from the same period last year, reports IBTimes.

Apart from the Surface devices, the company’s services and cloud products has helped to generate persistent revenue. Since the Lumia woes seem to slow down revenue growth of the Redmond giant, the company recently decided to offer free 950 and 950 XL smartphones through its online website. The offer starts today, so you should hurry before stock ends.

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The Verge notes that the maximum strength in revenue is earned through cloud services. Because of Office 365, the office commercial and cloud services of Microsoft grew 7 percent this quarter. Also, the consumer versions of Office grew by 6 percent. At present, the tech company boasts 22.2 million consumers subscribed to Office 635.

Apart from this, the cloud services and server revenue increased by 5 percent, while Azure revenue increased by 120 percent. It is expected that these revenues will help compensate the losses from Lumia smartphones.

Also Read: 6 Tricks For Microsoft Windows 10: Better Experience

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