Windows Phone worth $600 million to Microsoft

Windows Phone worth $600 million to Microsoft

Summary: The Seattle PI has been digging through Microsoft's financials for 2011 and come up with a number for how much Windows Phone (and Windows Mobile) is worth to Microsoft - some $600 million.

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The Seattle PI has been digging through Microsoft's financials for 2011 and come up with a number for how much Windows Phone (and Windows Mobile) is worth to Microsoft - some $600 million.

This number is the result of taking the $8.716 billion revenue from the Entertainment and Devices Division and subtracting from that $8.103 billion of Xbox revenue. Everything else adds up to $613 million.

Note: This $613 million number not only includes Windows Phone and Windows Mobile, but also Zune, Mediaroom, Surface and other hardware.

Microsoft's Windows Phone platform debuted last November in the US, so bear in mind that for nearly half of the fiscal year Microsoft was having to make do selling the old Windows Mobile platform.

Microsoft has been very cagey about how well Windows Phone has done (we’ve had all sort of numbers from Microsoft, but no actual sales figures). In fact, the most telling official word we've had is from CEO Steve Ballmer who, when referring to Windows Phone, said "in a year, we've gone from very small to ... very small." Then there was the whole update debacle that left some handsets bricked. Even offering a Windows Phone 7 handset for $0.01 hasn’t seemed to have helped boost user share.

Now, $600 million might seem dismal when set alongside what the iOS is pulling in for Apple ($13.3 billion from the iPhone in the last quarter alone). But while Apple has its ducks in a row when it comes to platform and ecosystem and as such is in a position to reap those rewards, it's still early days for Microsoft. Things will change ...

And we should start to see things turn around for Windows Phone when Microsoft’s deal with Nokia to become a major OEM for the brand actually results in phones going on sale. In exchange for the company’s loyalty, Microsoft is allowing Nokia to customize the Windows Phone OS so we might see some interesting innovation (then again, we might not ...). Right now it seems that Nokia’s first Windows Phone handset will be similar to its N9 flagship handset.

So, sure, $600 million is nothing compared to Apple, but then right now nothing compares to Apple. For an embryonic platform with a developing app ecosystem, I don't think that Windows Phone has done that badly, all things considered.

Topics: Mobility, Microsoft, Operating Systems, Software, Telcos, Windows

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47 comments
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  • RE: Windows Phone worth around 600 million to Microsoft

    Mango will reverse these fortunes! I have it on my Trophy and it is great!!
    jatbains
    • RE: Windows Phone worth around 600 million to Microsoft

      @jatbains USA. if they just ship more me too WPs like the current OEMs have and only ou<a href="http://www.tran33m.com/vb/">t</a>side the US that will be a baby step in the right direction but not what turn around are made of. Mango co<a href="http://vb.maas1.com/">m</a>pletely blows ios5 and gingerbread away but Nokia needs to add hw that blows away iPhone5 and this fall/spring Android hw and they need to get it into the US market.
      alasiri5
    • RE: Windows Phone worth around 600 million to Microsoft

      @jatbains I think that people will still stick to iPhones, these are just much easier to use.
      <a href="http://www.lookupcellphoneeasy.com">lookup cell phone</a>
      terentemil
  • RE: Windows Phone worth around 600 million to Microsoft

    @reklissrick

    I'm actually waiting until my contract runs out, then dumping this Blackberry in favor of a Windows Phone... Possibly WP8? I had the opportunity to try a couple of friend's WP7 devices and I was pleasantly surprised.
    Badgered
  • That's just weird

    @reklissrick
    It wouldn't occur to anyone in our family to get anxious or excited over a phone. <i>Any</i> phone.
    Zogg
    • That pretty well sums up .....

      @Zogg <br><br>my feelings also. I look for the cheapest solution that meets my needs. I am not particular about the brand nor the OS. You can see however how people get sucked into "subsidized" phones with a multi-year contract. If "having" something really excites you, I guess you just have to go out and get it.
      Economister
    • RE: Windows Phone worth around 600 million to Microsoft

      @Zogg What's wrong with your family? They still living in the technology dark ages? :-)
      Tiggster79
  • Other Microsoft products don't help

    @reklissrick ... I have 'tried' Microsoft products every weekday of my life for 20 years now, and the moment 5:00 rolls around, I end my Microsofting and either do something entirely different, or spend time using technology products I actually enjoy - particularly those from Apple.<br><br>I'm a curmudgeon who has put off smartphones for years now, but after seeing someone demo the Amazon barcode price check app, that was the straw. I'll be getting the new one when it ships in September. <br><br>I haven't actually handled a Windows phone. But I did see a lot of snarky ads ridiculing those who enjoy using smartphones and they put me off. If I buy a smartphone I intend to use it, not quickly scan tiles at the nightclub while wearing a suit and mugging disapproval of the guy using a smartphone.<br><br>I pay attention to what marketing ads are communicating, and I didn't like what I saw. It's certainly not the kind of thing to encourage me to want to look at their product.
    HollywoodDog
    • RE: Windows Phone worth around 600 million to Microsoft

      @HollywoodDog <i>I pay attention to what marketing ads are communicating, and I didn't like what I saw.</i><br><br>I know what you mean... got the same feeling watching the Mac vs PC ads. To each his/her own. But every time I watched one of the WP7 ads it reminded me of every idiot driving down the road reading a screen on their "smart phone", not staying in their lane. How this Windows phone would be any different, I'm not sure. But the commercials struck a note in my mind.
      Badgered
    • RE: Windows Phone worth around 600 million to Microsoft

      @HollywoodDog \
      We all know that you hate Microsoft and are biased for Apple. Now whatelse we expect from official Dog of Apple.
      Ram U
    • You're so &quot;believable&quot;, Hollywooddog.

      @HollywoodDog
      I don't now, something about you commenting on an MS product doesn't feel "honest" IMO. Not quite sure what it is, but it's there.

      But I agree with you on the "snarky" commercial thing - I was all set to buy a Mac some time ago until I saw those obnoxious "Mac vs PC" ads, and I'll tell you, they turned me off to a Mac by the 3rd commercial.

      Something about having to talk down a PC user instead of talking up your own product tells me right off the bat that thy're trying hard to hide something about their own product.

      It didn't encourage me to buy a Mac, instead it told nme to stay away from one, that it wasn't the better choice of the 2.
      William Farrell
    • Funny, Rama - not quite the &quot;official Dog of Apple&quot;

      @HollywoodDog ... They're a couple of bones short.
      HollywoodDog
    • The I'm a Mac ads really were different, and better

      @HollywoodDog ... In the 'I'm a Mac' series of ads, you had the two characters who did a fairly good job of representing the two different companies. One was a hipster, the other a suit & tie business guy. And while there was a fair amount of ribbing, ultimately they ads worked because deep down they liked each other.

      Like PC would say something negative about himself, and Mac would say "oh no, don't say that." It was enjoyable banter, although PC always got the worst of it. But hey, in the world of 2005-2010, PC did have a lot of problems, Vista was a big disappointment, there were lots of viruses and Windows rot and all that stuff. The ads wouldn't have worked if they didn't have a kernel of truth.

      Compare that Microsoft's Laptop Hunters ads. They were decidedly mean spirited. They presented misleading information and the bottom line was always price, never quality. The ads never said PC laptops were better quatliy - always 'we're cheaper'. What kind of message is that?

      Then the Win7 phone ads always showed an older neanderthal looking guy sadly sitting there jabbing his finger at his phone oblivious to the world around him. Meantime 'mr cool', or rather Redmonds answer to mr cool, was a young pressed-suit wearing nightclub attendee accompanied by a girl *yeah, a real live girl! Oh boy!* quickly scanning his tiles, apparently to make sure there were no emergency messages from the IT department, and he then looks over at Mr. Neanderthal jabbing at his phone, then mugs disapproval for the camera.

      I don't know - maybe there are people out there who saw that and it resonated with them. To me it seemed so mean spirited and petty and humorless that I suspect Steven A. Ballmer must have signed off on it personally.

      To me it lacked wit, humor, warmth. To me it seemed like a lot of angry marketing department executives in a conference room at Redmond who really wanted to hit somebody, and this ad agency delivers them the hit they want, so they can get revenge, or something.

      Bottom line, didn't make me want to run out and try a Windows phone.
      HollywoodDog
    • RE: Windows Phone worth around 600 million to Microsoft

      @HollywoodDog <i>But hey, in the world of 2005-2010, PC did have a lot of problems, Vista was a big disappointment, there were lots of viruses and Windows rot and all that stuff.</i><br><br><i>Then the Win7 phone ads always showed an older neanderthal looking guy sadly sitting there jabbing his finger at his phone oblivious to the world around him.</i><br><br>hmm.. yep.. both satirical depictions of what it is/was like at the time. Not sure where you see a difference between the two ads.
      Badgered
    • ROTFL! I just knew you where going to say the exact opposite

      @HollywoodDog
      in reference to the Mac vs PC ads!!

      Too predictable!

      LOL! :)
      William Farrell
    • RE: Windows Phone worth around 600 million to Microsoft

      @HollywoodDog
      :D, I am happy, you loved it. :D
      Ram U
    • Why ridicule smartphone users?

      @HollywoodDog WP7 ads are saying that the person who actually spends time using his smartphone is a loser, so insted - buy our smartphone.

      I can't understand why you'd want to ridicule the very behavior you're selling. If I were selling sailboats, I wouldn't run an ad depicting sailboat users as time-wasting idiots, and oh by the way, please buy my sailboat.

      Does Microsoft think the smartphone buying public just hates spending time using apps on their phones, and that they're desperate for the efficiency offered by phones that don't do very much? Why are they buying smartphones in the first place then?
      HollywoodDog
    • RE: Windows Phone worth around 600 million to Microsoft

      @HollywoodDog <i>WP7 ads are saying that the person who actually spends time using his smartphone is a loser, so insted - buy our smartphone.</i><br><br>Read it this way... <b>Mac vs PC ads are saying that the person who actually spends time using his PC is a loser, so instead - buy our PC</b>.<br><br>Again.. what's the difference?

      I'm not saying one is worse or better than the other.. just that they both do it. While the Mac ads might not insult you, they can offend PC users. Just as the WP7 ads may offend you.
      Badgered
    • The questions I'm putting out here

      @HollywoodDog ... are questions Microsoft might want to think about to solve the problem of why their phones aren't selling.

      What is the story Microsoft is telling to the potential customer?

      Who is Microsoft's potential customer - the company IT guy who is perpetually interrupting his Dr. Who marathon to scan 'tiles' to see which server is down? Is that why one needs to scan tiles - for great efficiency?

      Apple seems to be doing a great job of communicating to its customers and getting them to want to buy the phones. Partly that's because Apple is a design company that also has engineers. Microsoft is an engineering company that has a few designers (who apparently aren't being listened to).

      Maybe Microsoft should take any product they want to sell to consumers (Zune, WP7 phones, etc) and set them up in an office far away from Seattle under the supervision of design guys who have a big budget and don't have to justify their decisions to Mr. B.
      HollywoodDog
    • Yes, you prefer to be told when to clap

      @HollywoodDog The ads you were preferring to where talking about how people spend way too much time looking up their data on smartphones instead of living life. It was an ad talking about WP7's smart tiles.

      Sounds like you dislike needing to think about anything. You like your flat squares and essentially running one app at a time then being told its magical, please clap now.

      Like zealots of any kind (Apple, Google, Microsoft, you name it), there is nothing an opposing view could ever do to win you over. Even though Android has been blasting out innovation and their phones give you all the choice you could want, like a good victim of "paradox of choice" you just want to be told when to clap.

      Apple is coming out with IPhone 5, its like IPhone 4 but for $300 you'll get a better camera. You will buy it. Plese clap now.
      A Gray