Microsoft’s phone outsells Apple Watch

July 24 01:58 2015

Apple still won’t say how many watches it sold. But one thing most likely for sure: It was beaten by Microsoft’s phone. Microsoft told investors during last night’s conference call it sold 8.4 million Lumia smartphones – a more than 10% increase from the same period last year. That’s just smartphones. Microsoft also sells non-smartphones – to the tune of 19.4[2]

No matter if you take all Microsoft phone sales – 27.8 million – or just the smartphones at 8.4 million – both numbers are much larger than what people estimate Apple Watch sales to be. Despite a media frenzy and aggressive marketing, Apple likely sold just 4 million watches during the period, says a new report by market research firm Strategy Analytics. Some Wall Street analysts think the number was likely even lower.

The fact shows how the gulf between hype and reality can be quite large. It’s also a sign of how difficult it is, even for Apple, to jump into new markets. Investors are none too pleased with either company’s results Wednesday. Shares of Apple are down $5.82, or 4.5%, to $124.95 – and some investors are wondering how much lower the stock can go. Microsoft is down $1.80, or 3.8%, to $45.47.

Microsoft indicated it can find ways to keep the momentum going for its smartphone numbers. Microsoft recently announced it was laying off tens of thousands of workers it acquired as part of the purchase of Nokia. But CEO Satya Nadella has stated the company will refocus on fewer Lumia handsets – targeted precisely for three markets: Value, business and enthusiasts. Microsoft is also moving to have a third party actually make the phones, rather than manufacture them. Microsoft’s phone unit sales rose – but revenue from the sales fell – since the company has been attempting to drive the prices of phones down. Apple, on the other hand, has been looking to push the prices up.