Microsoft Surface Sales Reach Almost $1Billion, the iPad is Challenged

Radu Tyrsina By: Radu Tyrsina
2 minute read

Microsoft seems to be correcting its hardware strategy, as well as its software one, with the Surface RT flop getting the axe and Windows 10 being just around the corner to fix Windows 8’s drawbacks. And now we see that the Surface line of products is seeing an increase.
microsoft surface revenue
Microsoft has recently published its Q1 fiscal 2015 earnings report, disclosing that it has made $4.5 billion in net income on $23.20 billion in revenue. According to the report, revenue has increased by $4.67 billion, compared to $18.53 billion from the same period last year. However, net income has decreased 14 percent compared to last year’s $5.24 billion mainly because of the $1.14 billion cost associated with the integration and restructuring expenses related to the Nokia acquisition.

Surface line starts getting nice sales

Microsoft didn’t yet reveal Surface sales, but we know that Surface revenue was $908 million this quarter, up a massive 127 percent from the $400 million this time last year. However, if we assume that the average spent amount on the purchase of this year’s Surface Pro 3 was around $1000, then we have less than 1 million units sold, which isn’t that impressive, but it’s a good start.

READ MORE: Free Xbox Music Streaming Service on Windows 8.1 to be Discontinued

CEO Satya Nadella said Thursday during a conference call:

“Surface had strong results this quarter, driven by positive customer response to Surface Pro 3. The product lineup is the right one and customers are responding favorably.”

Surface Pro 3 sales continue to be strong, and consumers are already looking forward to the much-rumored Surface Mini, which could bring in even more sales. Microsoft also said that its Surface gross margin was positive this quarter, which means the company finally starts making money on Surface sales.

Server and cloud business still going strong

Microsoft also sold 2.4 million Xbox units in the quarter, but hasn’t revealed the split between Xbox One and Xbox 360. Microsoft also sold 9.3 million Lumia phones in the most recent quarter, which represents a 5.6 percent increase from the record 8.8 million handset sales in the same period last year.

Revenue has increased 13 percent for server, and commercial cloud revenue grew by a massive 128 percent thanks to Office 365, Azure, and Dynamics CRM. As for its Office line, Microsoft said that 7 million people are now subscribed to a mix of Office 365 Home and Personal, which is up from 5.6 million this time last year.

READ ALSO: Why Windows 10’s Action Center is a Smart Move from Microsoft

For various PC problems, we recommend this tool.

This software will repair common computer errors, protect you from file loss, malware, hardware failure and optimize your PC for maximum performance. Fix PC issues now in 3 easy steps:

  1. Download this PC Repair Tool rated "Excellent" on TrustPilot.com.
  2. Click “Start Scan” to find Windows issues that could be causing PC problems.
  3. Click “Repair All” to fix all issues with Patented Technologies (requires upgrade).

Discussions

Next up

Mozilla adds alerts about recently breached sites into Firefox browser

Giles Ensor avatar. By: Giles Ensor
3 minute read

Firefox has announced that it will start to warn users if they visit any breached sites. This is in an attempt to not only make […]

Continue Reading

More uncertainty for Microsoft’s Windows 10 October Update

Giles Ensor avatar. By: Giles Ensor
3 minute read

Oh dear. It’s been a pretty bad month for Microsoft concerning its Windows 10 October 1809 Update release. Microsoft eventually released the update a couple […]

Continue Reading

Confirmed: Microsoft now accepting ARM64 apps on its Store

Giles Ensor avatar. By: Giles Ensor
2 minute read

Yesterday, Microsoft released Visual Studio 15.9. With it came the announcement that “developers now have the officially supported SDK and tools for creating 64-bit ARM […]

Continue Reading