After the recent earnings call last Thursday, Microsoft’s numbers have been crunched down to reveal that Windows Phone 7 and Windows Mobile revenues are decreasing, despite a very high customer satisfaction rate. Why is that?
Half A Billion And Some More
Using Microsoft’s Accounting Principles (as opposed to using Generally Accepted Accounting Principles), you can take the $8.716 Billion that the Entertainment and Devices division earned as an overall revenue and subtract the $8.103 billion that the Xbox 360 platform earned — you will remain with $613 million. That is roughly what Windows Phone 7 and Windows Mobile earned in the 2011 fiscal year.
That revenue also includes MSFT’s earnings from Zune, Mediaroom, Surface and Hardware. Hence, it is possible that the overall revenue from Microsoft’s mobile platforms did not even cross half a million. It has to be noted that the fiscal year started on July 1, 2010 and Windows Phone was released in October and reached the US in November. So for almost half a year, the revenues were coming from Windows Mobile.
Customer Satisfaction Remains High, Visibility Remains Low
In December, Microsoft issued a statement saying that 1.5 million Windows Phone unites had been shipped out to retailers. How many were actually sold is still unknown. Further figures regarding Windows Phone’s revenue and sales status have been unavailable.
However, it has to be noted that Windows Phone 7 scored high on customer satisfaction. 57% rated their experience as “very satisfied”, which is higher than Android, which scored a 50%. iPhone, on the other hand, retains it’s rank as the highest rated at 70%.
Steve Ballmer at CES this year told the press that whoever held and used Windows Phone 7 liked it a lot. Hence he surmised that poor visibility at wireless carrier outlets and other retailers is what is dragging the otherwise great platform down. People will love it, once they get to see it for themselves.
Hence, once Nokia’s new line of Mango devices hit the shelves later this year in fall, WinPho7 sales are expected to catapult upwards.