Microsoft revealed smartphone sales had more than halved on the final three months of 2014 in its latest financial results
Microsoft saw sales of its Lumia handsets more than halve year on year to just 4.5 million during the final three months of 2015.
The US software giant, which bought Nokia for £4.5 billion in 2014, saw sales of handsets plummet from 10.5 million in the final quarter of 2014, it revealed in its FY16 Q2 results.
Revenue on phones sold fell by 49 per cent but the Microsoft Devices sector saw revenue grow by $3.3 billion (£2.3 billion) quarterly to $12.7 billion (£8.8 billion), driven by strong sales of its Surface tablet range.
Overall, Microsoft saw its revenue fall two per cent to $25.7 billion (£17.8 billion), with net income up eight per cent to $6.2 billion (£4.34 billion).
“Businesses everywhere are using the Microsoft Cloud as their digital platform to drive their ambitious transformation agendas,” said Satya Nadella, chief executive officer at Microsoft. “Businesses are also piloting Windows 10, which will drive deployments beyond 200 million active devices.”
Its Productivity and Business Processes (PBP) business, which includes Office, consumer Office, and Dynamics posted revenue of $6.7 billion (£4.69 billion) compared to $6.3 billion (£4.4 billion) in revenue last quarter. Office 365 now has 20.6 million subscribers.
Intelligent Cloud (IC), which includes service revenue and Enterprise Services: $6.4 billion compared to $5.9 billion in the last quarter.