• Diyan
• On April 22, 2016

The Lumia brand is dead, long live Surface

Microsoft has released its earnings report about the third fiscal quarter of 2016. Revenue ($20.5 billion) and profit ($3.8 billion) are both down compared with the same period last year.

The Lumia sales have dropped with the massive 73% as a result of the changed strategy ‘phones are not our focus in 2016’.

Microsoft has sold 2.3 million Lumias during the quarter, a drop from the 8.6 million sales in the same quarter last year. The result is a 46% decline in review from the phone business.

At the same time, the Surface division continues to grow with a 61% increase in revenue driven by Surface Book and Surface Pro 4. The commercial Cloud business grew 7% driven by Office365, while the server & cloud services increased 5%.

The declining Lumia sales are not something unexpected. We already reported there are no new Lumias coming this year, and the next Microsoft phone in 2017 could be a Surface. The only Microsoft smartphones for sale this year are the flagship Lumia 950 & 950 XL, the affordable Lumia 650, and the low-end Lumia 550.