Microsoft’s financial performance in the second quarter of its fiscal 2015, which was reported late last night, reveals several interesting bit of information about the company’s hardware lineup and how well they have been selling in the market. The company announced that the sales of Lumia devices were strong in the last quarter, but despite that it didn’t manage to reap as many profits. The Surface tablets, on the other hand, have shown a tremendous growth and brought in more revenue to the company. Also Read - Sony Xperia 1 II with 12GB RAM passes Geekbench listings
Microsoft announced that it sold 10.5 million Lumia handsets in the last quarter. It’s an impressive figure, considering the company hasn’t launched a flagship device for quite sometime. The 10.5 million Lumia handsets brought in a $2.3 billion in phone revenue. While the volume of units sold is higher than last quarter’s 9.3 million figure, the revenue is lower than the $2.6 million figure. Also Read - Oppo is preparing to announce the Oppo K7x phone on November 4
The lower revenue signifies gradual lowering in the average selling price of Lumia handsets. It also shows off company’s increased focus towards making lower-end handsets. Just earlier this month, Microsoft launched the Lumia 435 and Lumia 532, two low-end handsets at dirt-cheap price points. Also Read - Micromax teases In Series smartphone design, resembles Honor smartphones
Surface tablets, which failed massively in its first three iterations, is now finally showing some positive signs and is selling left and right. The Surface revenue was up by 24% from the same quarter in 2013, generating $1.1 billion. “We again saw enthusiasm and demand around our cloud offerings like Office 365, Dynamics CRM Online and Azure, as well as Surface Pro 3,” said Kevin Turner, chief operating officer at Microsoft.
The company announced that it sold 6.6 million Xbox units — both Xbox One and Xbox 360 combined — in the three months period between October to December. The performance was down from the 7.4 million units sold during the year-ago quarter. The revenue was also down, the company noted. It said that the Xbox platform revenue decreased by 20 percent from one year ago. The loss could be blamed on the “holiday sale” campaign the company began in November, wherein it sold the Xbox One console for $50 cheaper.
Overall, the company announced that that it generated $26.47 billion revenue and $0.71 earnings per share. The revenue figures are up 8 percent compared to last year, but earnings per share are down by 7 cents. The Devices and Consumer division reported a revenue of $12.9 billion, which is up 8 percent on a year-on-year basis. The cash flow from the Commercial department was also up by 5 percent to $13.3 billion.