According to the latest financial report published by Microsoft on its site for the Q4 of 2014, Microsoft sold 10.5 million Lumia devices, up from 8.2 million in the same quarter a year ago whereas Microsoft Surface line of products generated revenue of $1.1 billion, up from $908 million in Q3, 2014. Both the sales and the revenue are all time highs for Microsoft.
Microsoft total phone revenue did take a slight hit which result in reduced revenue of phones, decreasing from$2.6 billion for Q4, 2013 to $2.3 billion for Q4, 2014. Currently, Microsoft Lumia Phones are pretty much the only Windows Phones available in the market at the moment. Since Microsoft do not have any other OS smartphone in the market now, so it means that even though the total phone revenue for Q4, 2014 is lower than the Q4, 2013 but it represents only the Lumia devices which is encouraging.
With every Microsoft Lumia device being sold, Microsoft is actually inducting each and every user into its service and software environment where a user will use Microsoft services (MS Office apps etc.). On the other hand, the Surface line of products are mainly categorize as hybrids – a tablet/pc version of the device. Since there are a lot of such devices produced by other manufacturers that run Windows so the key here for Microsoft is to see the increase in revenue for Surface products rather than the sales.
Overall, Microsoft shares have seen a rise of more than 27% last year as Microsoft stock hit a 14 year high value of $49.58 per share, surpassing Exxon Mobile for becoming the 2nd most valuable company in the world after Apple.