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Windows Phone 7 Revenue About $600 Million ‘Not $616 Million’

Microsoft’s Entertainment and Devices Division reported a whopping $8.716 billion in revenue for fiscal year 2011, which ended June 30, in Microsoft’s annual report on Thursday to the U.S. Securities and Exchange Commission. Much of the revenue $8.103 billioncame from the success of Microsoft’s Xbox 360 platform.

But tucked in that number is a noteworthy is a smaller figure of $616 million that paints a rough picture of how much revenue Microsoft received from Windows Phone 7 and Windows Mobile. “If you subtract that number from overall revenue to the Entertainment and Devices Division – $8.716 billion – you get a rough figure for Windows Phone 7 and Windows Mobile. That number – which also includes revenue from Zune, Mediaroom, Surface and hardware – was a mere $613 million last year,” reports Seattlepi.

To compare, Apple recently reported its revenue from its iOS was $13.3 billion for just the last quarter. Here is a take from ZDnet:

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.

Microsoft faces heavy competition from the iPhone and from Google’s Android platform and others. The Windows Phone 7 launch last fall hasn’t stopped Android’s rise. Microsoft had almost 8 percent of the U.S. market in the past three months, down 1 percent.

For Microsoft, much is riding on a deal with Nokia to work together to challenge the Apple iOS and Google Android in the critical mobile industry. Nokia has begun work on the first Nokia smartphone supported by Microsoft software. A Windows-based Nokia phone could be produced the end of 2011.

It’s difficult to compare Microsoft’s Windows Phone revenue to that of its main competitors, Apple and Google.

Apple reported iPhone revenue of $13.3 billion in the most recent quarter alone. However, unlike Microsoft, Apple sells its own hardware – and includes revenue from wireless carrier agreements and iPhone accessories.

Google doesn’t break out Android revenue. The mobile OS is free for phone manufacturers to adopt, and Google gets most of its Android revenue through advertising. In Google’s most recent quarterly earnings report, the word “Android” appears just three times.

Nevertheless, the most revenue Microsoft could have possibly gotten from its mobile operating systems was $613 million in fiscal 2011. Abysmal.

Remove revenue from Zune sales, Zune subscriptions, Mediaroom licenses, Surface sales and hardware (mice, keyboards, etc.), and the number is even worse. And considering that for just under half of fiscal 2011, when Microsoft was still selling only Windows Mobile licenses, revenue to Windows Phone 7 was even worse than that.

Microsoft declined to comment for this report.

[Via: Seattlepi, ZDNet]

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