Microsoft this week revealed its financial report for the first quarter of fiscal year 2016, and it’s not good news for the Lumia business. Smartphone revenue declined a staggering 54 percent over the three-month period off the back of just 5.8 million sales.
In the previous quarter, Microsoft sold 8.4 million units, which signaled an increase for the first time since the holiday quarter of 2014, when 10.5 million units were sold. However, Microsoft was unable to keep up that momentum.
Perhaps that’s not so surprising, given that the company has only just announced its first flagships — the Lumia 950 and Lumia 950 XL — since purchasing the Lumia business from Nokia last year. Microsoft is hoping that these handsets can boost sales next quarter.
It’s not all bad news for Microsoft, though. In fact, if you take the Lumia business out of the mix, the company performed very well last quarter, with all of its “Intelligent Cloud” businesses seeing big increases.
Revenue from servers was up 9 percent, commercial bookings were up 10 percent, Bing was up 29 percent, and Office 365 was up 66 percent. The biggest increases were in Azure and commercial licenses, which rose 135 percent and 157 percent respectively.
As a result of this, Microsoft shares peaked at $48 in after-hours trading on Thursday.