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

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Published onOctober 24, 2014

published onOctober 24, 2014

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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 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 haveless than 1 million units sold, which isn’t that impressive, but it’s a good start.

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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 sold2.4 million Xbox unitsin the quarter, but hasn’t revealed the split between Xbox One and Xbox 360. Microsoft alsosold 9.3 million Lumia phonesin 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.

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

Surface line starts getting nice sales#

Server and cloud business still going strong#

With KB5043178 to Release Preview Channel, Microsoft advises Windows 11 users to plug in when the battery is low

Copilot in Outlook will generate personalized themes for you to customize the app

Microsoft will raise the price of its 365 Suite to include AI capabilities

Death Stranding Director’s Cut is now Xbox X|S at a huge discount

Outlook will let users create custom account icons so they can tell their accounts apart easier

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

Surface line starts getting nice sales

Server and cloud business still going strong