Microsoft bet big on the Surface. So much so that the company ended up over-producing the original Surface RT that ended in a multi-million dollar write-off. Admittedly the device did confuse people. It ran Windows and had a Desktop, but it didn’t run regular Windows applications. Microsoft failed to clearly differentiate Windows RT from the other editions, so the device suffered. But the story has been very different for the Surface Pro line including the latest Surface Pro 3, which has seen a lot of success, particularly in businesses and schools.
Today, the numbers are out as Microsoft released its FY15 Q2 earnings, and just as expected, Surface revenue is up. As of Q4 2014, Microsoft earned $1.1 billion worth of Surface revenue, that’s a 24% increase from the same quarter in 2013. Microsoft notes that the revenue is mostly from sales of the Surface Pro 3 and its accessories.
“We again saw enthusiasm and demand around our cloud offerings like Office 365, Dynamics CRM Online and Azure, as well as Surface Pro 3,” – Kevin Turner, COO, Microsoft
With Windows 10 on the way and likely additional Surface models like the Surface Pro 4 and the Surface Mini (which was reportedly had its launch canceled in the last minute), Microsoft should have Surface revenues increase even further in 2015.Further reading: Microsoft, Q2 2015, Surface, Surface Pro 3