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

Radu Tyrsina By: Radu Tyrsina
2 minute read

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

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

Discussions

Next up

Download VPN Unlimited for Windows 10 to access geo-restricted content

Rabia Noureen avatar. By: Rabia Noureen
2 minute read

Most of us are sick of the messages informing us that the content is unavailable when we access Hulu or Netflix apps. This notification appears […]

Continue Reading

What to do if your VPN stopped working in Dubai

Daniel Segun By: Daniel Segun
7 minute read

Are you resident in Dubai? Are you having problems with your VPN? If so, follow this guide to fix it. Here, we’ll be showing you […]

Continue Reading

Here’s how you can fix error 0x80070780 on Windows 10

Matthew Adams By: Matthew Adams
4 minute read

Error 0x80070780 arises for some users when they try to copy, delete, back up or edit certain files in Windows 10. The error message states: […]

Continue Reading