|For every Windows Phone that is sold Microsoft is losing 12 cents before marketing and sales cost.|
The Acquisition of Nokia may be written off as a loss since the phone hardware seems to be a risky business too. Putting Android on those phones might have made them profitable though.
Other large Smartphone producers Like Chinese Huawei state that they dropped Windows because they were losing money and they also claimed that nobody can make any money on Windows Phone:
Huawei produced two models running Microsoft’s smartphone OS before it said it was putting its plans for future Windows Phones on hold.
“We didn’t make any money in Windows Phone,” Kelly said. “Nobody made any money in Windows Phone.
With a growth of 18 % Lumia has not extended the Windows platform to the heights that Microsoft need.
We continue to demonstrate momentum in the value smartphone segment of the phone market, driving 18% growth in Lumia volume this quarter," Nadella said last week. "However, we need to take further action to reduce our costs across devices as we execute on our Windows 10 first-party hardware plans.
Windows 10 on phones will live on but Microsoft is cutting costs to make it profitable.