Microsoft Surface lineup is booming, generates a billion dollars

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Microsoft just announced its financials for the last quarter, and the report from Microsoft looks pretty good this time around. It seems that the Surface tablet range of devices has become a billion dollar business for the U.S. based software giant.

 

Surface Pro business exceeds $1 billion

The Surface Pro 3 has helped Microsoft increase sales of its tablet-come-laptop range in the face of stiff competition, and has been widely hailed as an excellent device to use. The Surface lineup will also shortly be joined the the Surface Hub, a huge screen with built-in processing power and collaboration tools targeted at businesses. With Intel’s new Broadwell chips about to roll out (which always helps Microsoft products, especially possible fan-less designs in a future Surface Pro), the future for Microsoft’s hardware division is looking pretty rosy.

Microsoft Surface Pro 3

Microsoft had to write down $900 million in the past caused by failing to shift enough units (before the Surface Pro 3 was released last year), and Windows RT (designed for ARM-based devices) is pretty much dead now, but in the end it’s all turned out well for Microsoft’s tablet. You can’t complain about a billion dollar quarter!

RELATED: Microsoft shows off Windows 10 and ‘HoloLens’

Windows 10 will be released later in the year, and will bring to the table lots of features that will improve the usability of the Surface Pro 3 even more. “Continuum” for example, makes it easier for apps to optimise their layout depending on the target device (PC, tablet, phone).

Microsoft is continuing to transform, executing against our strategic priorities and extending our cloud leadership. We are taking bold steps forward across our business, and specifically with Windows 10, to deliver new experiences, new categories, and new opportunities to our customers – Satya Nadella, chief executive officer of Microsoft

Microsoft Surface Pro 3 on Table

Here are some more highlights from the Microsoft announcement yesterday:

  • Devices and Consumer revenue grew 8% to $12.9 billion
  • Surface revenue of $1.1 billion, up 24%, driven by Surface Pro 3 and accessories
  • Office 365 Home and Personal subscribers increased to over 9.2 million, up 30% over prior quarter
  • Xbox console sales totalled 6.6 million units, with strong holiday season performance
  • Phone Hardware revenue of $2.3 billion, with 10.5 million Lumia units sold driven by growth in affordable smartphones
  • Windows OEM Pro revenue declined 13%; revenue was impacted by the business PC market and Pro mix returning to pre-Windows XP end of support levels and by new lower-priced licenses for devices sold to academic customers
  • Windows OEM non-Pro revenue declined 13%, with license growth from opening price point devices

SOURCE: Microsoft press release

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