$908 Million in Surface Sales, Driven by SP3

[wynand32]

Microsoft's Q1 2015 results are out, and they did very well overall. Revenues up 25%, earnings down 8% due to their restructuring and lingering costs from the Nokia acquisition. Windows, Office 365, Azure all up. $2.6 billion in Windows Phone revenue (don't know if that's up or down, though).

But, of most immediate interest: Surface revenue was at $908 million, driven primarily by the SP3. So, I think we can put aside that silly "OMG, Microsoft is cancelling the Surface" discussion.

 

[Clovismod]

And MS states Surfaces gross margins are now positive...

 

[sharpuser]

It is good to be a happy consumer of a product which yields enough earnings to make the manufacturer happy, too. A self-sustaining, auto-improving economy.

 

[mitchellvii]

Well it makes sense. MS finally listened to what we said we wanted instead of trying to tell us what we needed and they got a wonderful device. It's funny. When I first got the Surface Pro 1 I did a lot of bitching in the forums about what the device should have and could have been. The fanboys hated on me but I stuck to my guns. Surface Pro was a good idea done poorly.

With the Surface Pro 3, MS pretty much checked every box and got it right. They even surprised me with things like the 3:2 aspect ratio. The Surface Pro 4 will be truly wonderful although I'll probably use my SP3 until it falls apart.

Yoga 3 Pro missed a big opportunity to ding Surface Pro 3 if they added a digitizer. Lucky for MS they dropped the ball.

 

[wynand32]

I like this thread.

 

[bluegrass]

I don't expect the 4 to have big changes. I predict a 2nd or 3rd USB 3 port (one just below the existing one and one below the volume control), a new CPU, & maybe a new GPU chip, & wishfully separate WiFi & Bluetooth transceivers. I don't see too much more other than some window dressing to make it appear cooler than it already is.

I think Window 10 will make the Surface even a bigger hit. Frankly, I think todays laptops are on their last leg of existence. I've asked the few people where I work how they like their SP3s & they love them compared to their bulky laptops they were carrying around. I sure hope our IT manager goes completely with Surfaces over continuing to purchase Lenovo Laptops. I know it's about double the purchase price but I think the difference for the user is worth it.

 

[wynand32]

Yoga 3 Pro missed a big opportunity to ding Surface Pro 3 if they added a digitizer. Lucky for MS they dropped the ball.

Only caveat here, for me at least, is that ultimately I want Windows to succeed. And so although I'm happy about the SP3's success, I'm not against other Windows machines being successful. I don't really think the Surface line will be an industry leader in sales numbers, but rather in technology--and, I don't think it has to be a sales leader as long as it's break-even or mildly profitable.

But, with so much competition coming from mobile, Chromebook, and even OS X, I want many OEMs to be successful in addition to Microsoft to make sure that Windows remains dominant.

 

[wynand32]

I think Window 10 will make the Surface even a bigger hit.

I've been pondering this as well. I think Windows 10 WILL BE a huge hit, and already has gone a long way towards revitalizing Windows in the public's eye. Interesting how well Windows did, though, given how horrible Windows 8.1 is supposed to be.

I'll be interested in seeing what happens in the near-term with Windows, i.e., until Windows 10 is released. Some people will likely hold off on upgrading from Windows 7 (and their Windows 7 machines) in anticipation of Windows 10. Microsoft's Q1 results wouldn't show this, of course, so we'll have to wait for the next couple of quarters' results to see.

 

[mtalinm]

sp4 will just be a new chip i think with longer battery life ad maybe lighter weight. would love for it to be thinner too but not betting on it...

 

[ctitanic]

That's excellent news but... I don't see all those pages that posted about the lost now posting this news?

 

[leeshor]

That's excellent news but... I don't see all those pages that posted about the lost now posting this news?

I must be missing something.

 

[Aegeas]

http://finance.yahoo.com/news/microsoft-sales-soar-25-huge-204900987.html

I knew this thing was selling well.