Microsoft FY15 Q3: Lumia devices continue to drive sales for the Windows Phone platform

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With almost a full year under its belt, Microsoft has managed to take the Lumia line of Windows Phone devices and make a seamless transition to the low-end market. During Microsoft’s FY Q3 earnings report, it turns out that the amount of Lumia devices being sold are slightly increasing YoY. Unfortunately, because the low-end smartphone buyers deal with more constrained price points, Microsoft’s gross margins for the phone line have declined.

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Microsoft has reported that 8.6 million Lumia smartphones have been sold, which is an 18% growth compared to the previous year. This is great news and is likely due to the host of new, and rather attractive low-end Lumia devices that have been released over the past few months. Microsoft also reports that Windows Phone revenue has declined by 16% primarily due to a higher mix of low royalty devices.

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It looks like Lumia phones are slowly starting to replace the sales of non-Lumia phones. The issue is, that users of non-Lumia phones are jumping to other low-end smartphones faster than Microsoft can sell Lumias. Perhaps the Windows 10 experience on phones can attract those non-Lumia buyers at a fast clip.

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Further reading: earnings 2015, Lumia, Microsoft, phone, Sales, smartphone, YoY

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