Microsoft delivered 8.6 million Lumia phones in the first quarter. Never before has it been delivered several Lumia devices in the current year’s first quarter.
This became known as the company earlier this month presented the company’s latest quarterly figures. But now the company has published a document that says more about the numbers behind this business. American Computer World is among the first mentioned this.
Quarterly: Better than expected from Microsoft
Small loss
In the document it is stated that in addition to Microsoft Lumia phones sold 24.7 million traditional mobiles. Total traded company mobile hardware for $ 1.4 billion. But gross profit was minus $ 4,000,000. It is not stated which of the products that contributed the most to pull profits down.
The number of $ 4 million in this context is not so great, and certainly not impossible to get in plus if the company succeeds with investments as done now.
But figure includes only production costs, not costs related to such as marketing, research and development.
On the other hand includes the rather not the indirect revenues Microsoft has mobile sales, such as sales of apps.
Pulls out: – No earned money on Windows Phone
Pesimisme short term
But Microsoft itself appears not very optimistic for the upcoming developments. According to ComputerWorld warns Microsoft that parts value on the mobile department might have depreciated.
The company stated that the telephone business is not reached quarter goals for either unit sales or revenue, and that the mix of units sold had lower margins than what was planned.
On this basis Microsoft that there is increased risk that the value of Phone Hardware device will deteriorate. This may be due to factors such as a decline in the expected revenue, reduced growth in unit sales or an increase in the risk-adjusted discount rate used to estimate the correct value of Phone Hardware unit, said Microsoft.
Depreciation expected to take place in May. How big they will be, is currently unknown, but Computerworld suggests that it may involve billions of dollars.
Microsoft has necessarily great faith in Windows 10 for smartphones, but the impact of the This launch comes earliest to contribute positively in the quarter ending October.
Background: Nokia ended with limp mobile sales
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