Microsoft ships 2 million Windows Phone 7 handsets in holiday quarter

Posted:
in iPhone edited January 2014
Microsoft on Wednesday revealed that it shipped two million Windows Phone 7 handsets worldwide over the holiday quarter, lagging well behind the 16.2 million iPhones sold by Apple in the same period.



Microsoft Senior Product Manager Greg Sullivan revealed to Ina Fried of Mobilized that more than two million Windows Phone 7 devices were shipped to carriers worldwide by the end of December. It's the first update from Microsoft since the Windows maker revealed it had shipped 1.5 million handsets in mid-December.



"We're still in the early stages," Sullivan said. "When people use this phone, they really, really like it."



He added that 93 percent of early customers indicated they are "satisfied" or "very satisfied" with Windows Phone 7. Based on customer satisfaction data, Sullivan said he believes Microsoft is on the right track.



The company did not, however, reveal how many of those shipped phones were actually sold to consumers. The total number represents handsets shipped to carriers, not end sales.



Regardless, the numbers are well behind Apple's iPhone, which recently had a record breaking quarter with sales of 16.2 million units over the 2010 holiday buying season. Windows Phone 7 launched in parts of Europe and Asia on Oct. 21, and in the U.S. on Nov. 8.



The shipment numbers for Windows Phone 7 are also lower that those reported by Gartner for Microsoft's own, earlier Windows Mobile 6.x platform in the third quarter of 2010, which amounted to 2.25 million units worldwide.



Microsoft will further discuss the launch of Windows Phone 7 when it reports its quarterly earnings on Thursday. Expectations on Wall Street are for the Redmond, Wash., software giant to report earnings of $5.93 billion which, if accurate, would lag behind the $6 billion in quarterly profits reported by Apple last week.
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Comments

  • Reply 1 of 85
    Windows shipped 2 million phones, but Apple sold 16.2 million.



    These are not the same things are they?
  • Reply 2 of 85
    They've shipped 2 million and I've yet to see one in the wild.
  • Reply 3 of 85
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by Pennywse View Post


    Windows shipped 2 million phones, but Apple sold 16.2 million.



    These are not the same things are they?



    If you are referring to shipped and sold, in this situation they are because each of those smartphones shipped to carriers means a WP7 license sold to the vendor.



    It’s too early to tell if WP7 will improve their position but I don’t think 2M is bad at all for this launch. MS was already floating around 10% smartphone marketshare with WM6 devices and a knowledge that WP7 was coming so I’d think they’d improve on that in the coming quarters.
  • Reply 4 of 85
    Quote:
    Originally Posted by halhiker View Post


    They've shipped 2 million and I've yet to see one in the wild.



    I have!



    ...in the hands of friend who was working for Microsoft at the time.



    Personally, I sort of hope they do better than this. They put some real thought and work into that phone and it doesn't suck. Much.



    Basically, I want Apple to keep doing backflips to stay ahead. Android is also a serious competitor, of course, but it's basically going to take us back to balkanized, vendor-controlled handsets that are a nightmare for both users and developers. If Google ever gets it together, I'd take another look, but it seems like Google doesn't have any incentive for that to happen.
  • Reply 5 of 85
    jd_in_sbjd_in_sb Posts: 1,600member
    "Shipping" phones to carrier stores is not the same as "selling" them. For all we know the channel is stuffed with them and they are collecting dust.
  • Reply 6 of 85
    Oh, nevermind.
  • Reply 7 of 85
    mj webmj web Posts: 918member
    Steve Bummer will eat the rest! LOL!
  • Reply 8 of 85
    blastdoorblastdoor Posts: 3,278member
    Quote:
    Originally Posted by AppleInsider View Post


    Expectations on Wall Street are for the Redmond, Wash., software giant to report earnings of $5.93 billion which, if accurate, would lag behind the $6 billion in quarterly profits reported by Apple last week.



    I think maybe you guys buried the lead --- when was the last time that Apple's quarterly profits were greater than Microsoft's? Was it in the 1980s? In any event, that will be another major milestone for Apple if it turns out to be true...
  • Reply 9 of 85
    Quote:
    Originally Posted by jd_in_sb View Post


    "Shipping" phones to carrier stores is not the same as "selling" them. For all we know the channel is stuffed with them and they are collecting dust.



    Microsoft got paid all the same.



    I switched from a iPhone 3G to a Samsung Focus 2 weeks ago. I dont miss my iPhone at all. The interface is so much better on the Windows Phone. My 3G with iOS 4.x was a dog, so the massive performance boost is probably tainting my viewpoint.
  • Reply 10 of 85
    Asymco (Horace Dediu) is reporting via twitter that



    "Microsoft sold more than 2 million Windows Phone 7 licenses to OEMs for phones that might get sold to operators that might get sold to users"



    which is slightly different yet again.
  • Reply 11 of 85
    grkinggrking Posts: 533member
    Quote:
    Originally Posted by jd_in_sb View Post


    "Shipping" phones to carrier stores is not the same as "selling" them. For all we know the channel is stuffed with them and they are collecting dust.



    Microsoft does not make phones, hence, MS did not ship phones to carrier stores.



    As solopsism pointed out, the business models are different. Apple sells consumer electronics, and sells phones. MS, for the most part, does not sell consumer electronics products, but sells the OS. In other words, there are no MS branded phones. So, what this means is that MS sold 2 million licenses to Phone makers during the period.



    Thus, it is a sale just as Apple selling a phone is a sale.



    The question of market share is different, and cannot be assessed based on MS sales numbers, without making assumptions because MS does not sell phones.



    Unless you wish to assume that the laws of economics have been repealed, and phone makers are buying licenses for phones that are not selling, and that have no hope of being sold, then it is safe to assume that the phones are selling at a reasonable enough rate for the phone makers to continue buying the licenses.
  • Reply 12 of 85
    nikon133nikon133 Posts: 2,600member
    Quote:
    Originally Posted by halhiker View Post


    They've shipped 2 million and I've yet to see one in the wild.



    I've managed to see 2 of them here in NZ, both from HTC. Can't recall what model they were.



    Still, I'd say 2 millions at this stage of product's life is not bad. I'd be surprised if Apple or Androids were shipping much more in the first months they were introduced. Also consider that WP7 is competing against iPhone and Android (plus BB, Nokia, remaining of Palm etc) so it's competition is tougher than what iP and A were facing.



    Additionally, I've read somewhere that number WP7 apps is growing faster than Android apps were growing at the same time after release. Don't know how that compares to iPhone app history but then iPhone didn't have app store at the time of release, so I don't think you can compare them easily.



    All in all, WP7 is doing fine for time being. Will it manage to keep momentum, now that is different question.
  • Reply 13 of 85
    maestro64maestro64 Posts: 5,043member
    MS needs to stop surveying it own employee about how that like their own products
  • Reply 14 of 85
    piotpiot Posts: 1,346member
    Quote:
    Originally Posted by solipsism View Post


    It?s too early to tell if WP7 will improve their position but I don?t think 2M is bad at all for this launch. MS was already floating around 10% smartphone marketshare with WM6 devices...



    Actually I do think it's disappointing. WM6 phones sold 2.25 million in 3Q (less than 3%). WP7 was long awaited and much hyped. If Samsung can sell 10 million of one model, Galaxy S, in 10 months....
  • Reply 15 of 85
    old-wizold-wiz Posts: 194member
    inside Microsoft is probably getting punished for it.
  • Reply 16 of 85
    ltmpltmp Posts: 204member
    Quote:
    Originally Posted by bettieblue View Post


    Microsoft got paid all the same.



    I switched from a iPhone 3G to a Samsung Focus 2 weeks ago. I dont miss my iPhone at all. The interface is so much better on the Windows Phone. My 3G with iOS 4.x was a dog, so the massive performance boost is probably tainting my viewpoint.



    I was in the same boat. Got the iPhone 4 and can't imagine anything being better.

    I've tried several of the Androids, but not a WP7 phone. I'd really like to though.
  • Reply 17 of 85
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by piot View Post


    Actually I do think it's disappointing. WM6 phones sold 2.25 million in 3Q (less than 3%). WP7 was long awaited and much hyped. If Samsung can sell 10 million of one model, Galaxy S, in 10 months....



    How many countries is WP7 sold in? How many devices are currently shipping with WP7? How many licenses of WM did they also sell this past quarter?



    Like I said, I don?t think this is a bad start to a new mobile OS. It?s certainly not a triumph either, but I can?t look at this first quarter and see a definite trend that will lead to ultimate WP7 failure.
  • Reply 18 of 85
    Quote:
    Originally Posted by AppleInsider View Post


    Microsoft on Wednesday revealed that it shipped two million Windows Phone 7 handsets worldwide over the holiday quarter ...



    Even though the source of this article repeats the same claim, most other sites are reporting this as "MS sells 2 million licences," (not phones).



    So, not only *not* phone sales to consumers, but also not even "phone sales" to vendors, just licences.



    I know it's a bit of a picky point, but most misconceptions arise from this kind of sloppy language. If tech sites started being a bit more professional, a bit more specific and a bit more accurate in their reporting, we'd all benefit immensely.
  • Reply 19 of 85
    ltmpltmp Posts: 204member
    Being an AAPL shareholder, I'd like to see MS do better. I'm pretty sure that every WP7 phone sold is one less Android sold.



    This makes Apple's iAd that much more attractive to advertisers.
  • Reply 20 of 85
    grkinggrking Posts: 533member
    Quote:
    Originally Posted by Prof. Peabody View Post


    Even though the source of this article repeats the same claim, most other sites are reporting this as "MS sells 2 million licences," (not phones).



    So, not only *not* phone sales to consumers, but also not even "phone sales" to vendors, just licences.



    I know it's a bit of a picky point, but most misconceptions arise from this kind of sloppy language. If tech sites started being a bit more professional, a bit more specific and a bit more accurate in their reporting, we'd all benefit immensely.



    MS can't report phone sales, because they do not make phones. It would be like asking how many HDTVs does Apple sell?



    MS and Apple have different business models.



    However, as I said before, one would have to assume that the Phone makers are knowingly and willingly throwing money away, and decreasing their profits, if WP7 is not selling at all. The most parsimonious explanation is that the phones are selling at a respectable, if not astronomical rate, hence the phone makers continue to buy the OS for their phones.
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