• Diyan
• On April 24, 2015

More units sold in Q1 2015 compared to 2014, but the revenue dropped

For the quarter ending in March, Microsoft sold 1.1 million Lumia phones more than the same period in 2014. Microsoft has announced in its fiscal report that 8.6 million units were sold in Q1 2015, which is an 18% increase compared to a year ago.

Although the Lumia sales have grown year-over-year, the revenue has dropped 16% as a result of sales in the low-end segments. Since the Nokia’s hardware division was acquired in April, Microsoft has been heavily emphasized on developing a new mix of affordable Lumia phones (like Lumia 535, 635) which quickly became very popular in key markets like India and Brazil.

Compared to the previous quarter (Q4 2014), the sales dropped from 10.5 million units, which is a normal tendency as the last quarter is usually the strongest period of the year. After releasing Windows 10 along with adding new high-end Lumia devices in the product mix, Microsoft is expected to increase both sales and revenue from its mobile division.

Other key numbers from the earnings report:

• Total revenue – $21.7 billion (6% increase YOY)
• Net income – $4.98 billion (12% down YOY)
• Surface revenue – $713 million (48% increase YOY)
• Xbox sales – 1.6 million, revenue is down %24
• OEM Windows revenue – 22% up
• Cloud revenue – 106% up

Source: Microsoft