Microsoft’s venture into the mobile phone market was once the talk of the town, but no longer generates near as much excitement. Windows CE had some dedicated fans but overall it wasn’t a widely accepted platform. This evolved into Windows Mobile which is cited as having 11.3% of the smartphone market in the United States in 2004 and even reportedly grew to 42% by 2007. Since then though, the company’s presence in the smartphone market has been dropping.
The company saw a resurgence of interest with the introduction of Windows Phone and then their accompanying partnership with Nokia. Microsoft then announced that they were acquiring Nokia’s mobile phone division in 2013, and overall they released some very capable Lumia devices. Nokia phones used to be highly regarded for their camera quality over the years and Microsoft had hoped that Windows Phone 10 and the Lumia brand would have kept their momentum going.
Microsoft reported their hardware phone revenue had gone up to $1.397 billion back during the first quarter of 2015. This was impressive for the company and was definitely the peak of Lumia’s popularity. A year later during the first quarter of 2016 though, this phone hardware revenue had dropped by $662 million down to a total of $735 million. While that still isn’t the best of numbers, it’s better than what some other smartphone OEMs can produce in the Android space.
Sadly though, this has continued to drop as Microsoft reported their hardware phone division brought in just $5 million in revenue during the first quarter of 2017. The company’s chief financial officer, Amy Hood, even went as far as to say they aren’t expecting anything exciting for the second quarter of this year either. Granted, this shouldn’t come as a surprise for Lumia and Microsoft Phone 10 fans because they’ve been waiting for a new phone for a while and have yet to see the company produce anything noteworthy.
The last phones Microsoft have announced were the “liquid cooling” Lumia 950 and 950 XL, and that was announced back in October of 2015. They are rumored to be working on new hardware now, but Mrs. Hood’s comments seem to indicate that they aren’t really coming anytime soon. Overall, it’s a bleak future for Windows in the phone space.