While Microsoft's FY2016 Q2 earnings have been exceptionally high and beating most expectations, their phone division was hit hard. None of that should be surprising for reasons we covered yesterday, but at least, we have an idea of just how bad things are for mobile.

Microsoft reported a 49 percent drop in devices revenue from the last quarter. That brings the number to an estimated 4.5 million Lumias sold for the quarter down from the 10.5 million Lumias from one year ago.

Windows Phone sales in the US plummet to all-time low

While the Lumia 950, Lumia 950 XL and Lumia 550 hit some store shelves this holiday season, there is little argument that most consumers are unaware of the product.

How Microsoft stops their nosediving smartphone story in 2016 remains to be seen. At this time, there does not seem like there is much that can turn this division around. Whatever mobile products are in the pipeline better blow the doors off of anything we have seen thus far.