10.5 Million Lumia’s Sold in Q4 2014



Microsoft have published their Earnings Release for Q2 of the fiscal year of 2015, more commonly known as the 4th quarter of 2014, which include some healthy profits and sales increase.

Sales of Lumia devices, something I have been interested in since Nokia first launched the range of Windows Phone devices in October 2011, is at an all time high, selling 10.5 million devices between the start of October and the end of December, up 12.4% on the previous quarter and up 21.9% on the same three month of 2013 (year on year). The report attributes the growth to “growth in affordable smartphones”. Revenue from Lumia is quoted at $2.3 billion.

Other figures include sales of 6.6 million Xbox consoles, this includes both the Xbox 360 and the Xbox One. Search advertising revenue up 23% with Bing market share growing 19.7%.

From the earnings Release:

Devices and Consumer revenue grew 8% to $12.9 billion, with the following business highlights:

· Surface revenue of $1.1 billion, up 24%, driven by Surface Pro 3 and accessories

· Office 365 Home and Personal subscribers increased to over 9.2 million, up 30% sequentially over prior quarter

· Search advertising revenue grew 23%, with Bing U.S. market share at 19.7%, up 150 basis points over prior year

·Xbox console sales totaled 6.6 million units, with strong holiday season performance

· Phone Hardware revenue of $2.3 billion, with 10.5 million Lumia units sold driven by growth in affordable smartphones

· Windows OEM Pro revenue declined 13%; revenue was impacted by the business PC market and Pro mix returning to pre-Windows XP end of support levels and by new lower-priced licenses for devices sold to academic customers

· Windows OEM non-Pro revenue declined 13%, with license growth from opening price point devices

Commercial revenue grew 5% to $13.3 billion, with the following business highlights:

· Commercial cloud revenue grew 114% driven by Office 365, Azure and Dynamic CRM Online, and is now on an annualized revenue run rate of $5.5 billion

· Office Commercial products and services revenue declined 1%; transactional revenue was impacted by the continued transition to Office 365 and declines in commercial PCs following the XP refresh cycle

· Server products and services revenue grew 9%, with double-digit growth of SQL Server and System Center

· Windows volume licensing revenue increased by 3%, with annuity revenue growth partially offset by declining transactional revenue.

You can read the entire Earnings Report yourself on Microsoft’s site by clicking HERE.