From DailyTech: Microsoft Corp. (MSFT) announced its earnings yesterday after hours for its Q2FY2015, which ended Dec. 31, 2014. Hidden in that earnings report were some barometers of the health of its Windows operating system in the smartphone space.
While Microsoft has a growing contingent of up-and-coming smartphone makers embracing Windows as a smartphone OS option, the majority of its sales are still driven by its in-house unit, which it purchased from Nokia Oyj. (HEL:NOK1V) in a deal completed in April 2014.
In the fourth calendar quarter of last year, Microsoft's Devices unit moved 10.5 million Lumia smartphones are earned $2.3B USD -- roughly $220 USD per device. On a quarter-to-quarter basis revenue is down $0.3B USD, but sales are up 1.2 million units from Q1FY2014 (calendar Q3) which saw Microsoft selling 9.3 million smartphones and earning roughly $280 USD per device.
On a year to year basis sales are up 28 percent from the 8.2 million units the unit [source; PDF] -- then under the ownership of Nokia -- moved in calendar Q4 2013. Nokia earned EUR€2.633B ($2.972B USD), but that number is slightly deceptive as it contains sales of Nokia's feature phones as well, which Microsoft has wound down volume-wise.
Over the holiday season Microsoft's smartphones -- which currently run Windows Phone 8.1 -- saw strong sales in low-end models including the Lumia 520/530 and Lumia 630/635. The Lumia 635 LTE -- which launched at a price of $189 USD in April 2014 -- sold for as little as $40 USD in holiday promotions.
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