Microsoft quietly launched a promotion offering customers a free Lumia 950 when they buy a Lumia 950 XL at regular price through its online store.
Microsoft's mobile business suffered through another brutal quarter as the company sold only 2.3 million Lumia handsets, down from 8.6 million during the prior year. That marks a 73 percent plunge in Lumia sales year-over-year and follows the 57 percent drop Microsoft endured during the final quarter of 2015.
Microsoft has reportedly delayed pushing a Windows 10 Mobile upgrade to some existing Windows Phone 8 and 8.1 users.
Microsoft reported that its phone hardware business slumped in the third quarter, which was expected since it did not introduce new devices and has slashed its phone hardware unit.
Microsoft suffered its worst quarterly loss in the second quarter thanks in large part to its $7.5 billion writedown of its purchase of Nokia's devices and services business. Yet Microsoft CEO Satya Nadella said the software firm remains committed to smartphones and the broader mobile market as it prepares to unveil Windows 10, its newest operating system. He said that Microsoft would in particular focus on being more efficient in the entry-level smartphone market.
Microsoft CEO Satya Nadella reaffirmed his commitment to the smartphone market and said that Microsoft has a broader view of its mobile strategy than just building phones itself. The comments, in an interview with ZDNet, come a week after the software giant said it would cut around 7,800 jobs, mostly from its phone business, and record an impairment charge of around $7.6 billion related to its purchase of Nokia's devices and services business.
They say a picture is worth a thousand words. If that's the case, then the Twitter header image for Microsoft CEO Satya Nadella demonstrates that perfectly. Just look at Nadella's tortured smile then try to make sense of the picture in the header. It resembles some kind of hellish, hopelessly complex landscape that maybe someone at Microsoft understands and loves. But, for a company that wants to solve problems, it's the wrong way to start. Nonetheless, it does provide the perfect illustration of what is and isn't happening at Microsoft.
Microsoft said it will cut around 7,800 jobs, mostly from its phone business, and record an impairment charge of around $7.6 billion related to its purchase of Nokia's devices and services business. The layoffs and restructuring charges are the latest indication that Microsoft has not been able to gain traction in the smartphone market following its $7.2 billion deal for Nokia's handset business, which closed in April 2014.
Nokia CEO Rajeev Suri confirmed the rumors that have been swirling around the company for a few months, and said that next year the company will re-enter the mobile phone market by licensing its brands and designs.
Microsoft is reshuffling its leadership team, and devices chief Stephen Elop is leaving the company as part of the shakeup. Elop, a Microsoft executive who had been CEO of Nokia, returned to Microsoft when the software giant completed its acquisition of Nokia's handset business in April 2014.