Microsoft today announced its quarterly earnings. There were few surprises, as Lumia sales are down by 72% (71% in constant currency), and Surface revenue grew to $926 million from $672 million.
For Surface, the news will not stay so good, and for Lumia, it will get worse. During the earnings call, chief financial officer Amy Hood said that it's not expecting either brand to do as well next quarter.
The news about Lumia should come as no surprise. The brand is unofficially dead, so sales of the devices will continue to decline until the company just doesn't offer them anymore.
After seeing such growth from Surface in Q3 calendar year 2016, it might seem strange to hear that next quarter isn't looking quite as optimistic, especially given that this is the holiday season. This is because we're coming up on a year from when the Surface Pro 4 and Book were released, which was on October 26.
Interestingly, Microsoft is holding an event on the anniversary that it spoke of, where the firm is expected to announced a Surface all-in-one device. There were also rumors that while Surface Pro 5 and Book 2 wouldn't be announced until the spring, the company would announced a new Pro 4 and Book with updated specs, such as Intel's Kaby Lake processors.
With what was said on the earnings call today, that doesn't seem entirely likely. Saying that sales will decline as the result of the current devices being over a year old certainly implies that those devices will not be refreshed this quarter.