Microsoft loses ~12 cents on every phone sold

[anuseems]

to a write off of its $7.2 billion acquisition of Nokia's Phone Division.

From Neowin:

Despite hitting a record 10 million sales in the second quarter of 2015, Microsoft's phone division is in trouble. Competitors, including Apple and Google, are pushing the envelope even further, leaving Microsoft in the dust. Redmond has seemingly chosen to produce only low-end phones with a flagship phone conspicuously absent from the current lineup.

A filing with the Securities and Exchange Commission highlights just how bad things have become. Microsoft acquired Nokia back in 2013 for around $7.2 billion (a figure which has since risen to over $9 billion, according to the filing) and the division, named "Phone Hardware", brought in $1.4 billion in Q3 2015 with the cost of revenue exceeding that figure by $4 million. This means that Microsoft lost around 12 cents per phone according to analysts, even before R&D costs, among other expenses, are applied, despite exceptional unit sales.

http://www.neowin.net/news/microsoft-loses-12-cents-on-every-phone-sold

[CODYQX4]

So they didn't lose anything then...