Microsoft Surface Revenue Down To $409 Million In The Last Quarter Despite Surface Pro 3 Launch

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Surface Mini Microsoft

In the quarterly earnings results published by Microsoft, it was revealed the Surface sales revenue was down from the previous quarter despite the launch of Surface Pro 3. The revenue was at $409 million down from $494 million last quarter. Gross margin growth was result of the Surface RT $900 million write down last year.

Microsoft also confirmed it via quarterly financial results. In the Computing and Gaming Hardware related slide, Microsoft mentioned that current year cost of revenue included Surface inventory adjustments resulting from their transition of production to latest Surface offering and a decision to not ship a new form factor.

Read more about it here.

About Author

Pradeep, a Computer Science & Engineering graduate.

  • Tirinti

    Surface Pro 3 is to large and to expensive.
    customers would like to buy Surface Mini, but moron nadela canceled it.
    Shareholders shoukd cancel his contract.

    • DW

      It’s not too large and expensive. I’ve compared it with other kinds of tablet and ultra book PCs of this size. It’s great for what it is. However, they could include a bundle price with the keyboard, and perhaps also the dock. I’ve ordered one already.

      I think the mini will be great when it comes – if it’s at a great price. There is certainly room for small inexpensive RT-based tablets.

      Also, there is room for a Surface Mini that includes an i5 or i7 and has a lower resolution, but can be docket and replace a desktop – using a full monitor. This would be great for professionals that can carry around and have the option to pull it out in a cafe or train if needed. It could be thicker than a normal mini tablet for this purpose to keep costs down and allow for higher specs.

    • koenshaku

      I think the Mini should remain canceled. Go buy asus vivotab 8″ if you want a mini with a Wacom display. The RT will limit software too much.

  • NITSUK

    We have been eagerly waiting for Surface Pro 3 to launch in UK and they have it dated for 28th of Aug 2014!! Clients are being put off because of the wait, same goes for Lumia 930 which they left it so long we’re leaving it until next release of handset

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  • Jackal

    Too expensive, and it’s a bit of hidden kick in the Teeth when promotional pictures all show the Keyboard, which isn’t actually included.

    • koenshaku

      It is not too expensive for what you get with the device it is actually cheaper than most alternative hardware offering the same.

  • Joe_HTH

    Considering how poor Microsoft is at hardware launches, especially worldwide, it’s not wonder. They are absolutely awful at making a product available worldwide. Microsoft is worse than Nokia, and they’re going to be the death of Windows Phone. They’ve already cancelled the one phone many of us were looking forward to, the McLaren. Surface will be the next product they kill. I also see them eventually spinning off Xbox, regardless of what Nadella says.

    Sadly, the writing is on the wall. Microsoft is headed towards IBM territory, which is they will become an enterprise only company. We’ll be stuck with a duopoly of Google and Apple, which will kill competition and choice. This is what happens when you sit around on your butt and allow Apple and Google to take the market away from you in mobile. T

    • Man

      I see many comments about canceling Windows Phone (code name McLauren) and how people are crying over something that no one even knew how it gonna look like and what was the real specification.
      Ok Microsoft canceled one project so what? It is not like they have only and only one project in hand and with canceling that project it is all game over!!!
      They have many different projects all the time and for sure they will come with new high end phone for holidays and maybe even more than one. Many people just care about look and power of the phone. So many people don’t care about 3D at all.
      Let say they didn’t cancel that project and an ugly phone with 3D comes out which no one buys and we don’t even like the look. Is that what we really want? Or now instead we can see Microsoft put more resources behind the other high ends phones and come with something that looks nice and more practical than 3D screen.
      The truth is no one knew much about McLauren and all these crying over it doesn’t makes sense. If they come with other nice phones (high-end) then it is all good and we really didn’t miss anything.
      Plus sometimes they company change a features on project and give it a new name. Maybe in this case they removed 3D and now instead of McLauren it comes back as new project call Audi or whatever… I think people need to get over it and wait to see what Microsoft has to offer for holiday. If they don’t offer any high end phone for this holiday then I am the first here to say it that they are plain stupid and maybe better to shut down Windows Phone all together. But if they come with new phones which looks good and a powerful devices then who cares McLauren got cancelled.
      But just you guys know in company I work we see a lot of stuff like that. Many things change during development of project and they have to cancel it and rename project to something else and continue development.
      So people get over it and move on and wait see what we will get this holiday.

      • perfectalpha

        They also canceled the Surface Mini. That is TWO devices at least! :)

      • koenshaku

        Yeah yeah, the phone could have just been a stupid gimmick. I was going to buy a new windows phone this fall regardless though as my contract has been up for awhile now. I will be very disappointed if my choice is limited to the 1520 on ATT..

    • LexicoRed

      They will not be enterprise only they will be cross platform software provider. Yes the Ballmer hardware fiasco is about done but this is good news. Too much resources has be wasted on it & the only thing it has accomplished is MS is not a hardware company.

      Though the future is great focusing on software and services.

      • koenshaku

        As long as OEMs are not producing products as slick as the surface 3 pro then I think they should stay relevant I just bought one myself and love the device.

        • LexicoRed

          My position is aligned to what is best for Microsoft not the limited number of people who actually purchased MS hardware. I glad you both are thrilled with the products but the investment and negative profits generated by those sales are done so at the damage of the company. How many more layoffs and billion spent should the company deliver to keep a few like you happy?

          • KelvBlue

            Negative profits?

          • LexicoRed

            Sorry worked in the finance sector a bit to long, I’m still recovering ;)

      • http://www.spauldesign.com/ Simon Paul

        You do realize they have been doing hardware for years right?

        And regardless of sales, the Surface line is amazing and it’s the only tablet model/brand I buy. So no, they haven’t “wasted” money on their devices vision. That argument is so flawed. You know Apple right? The company that spent 10 years in the 90s as a software and hardware company with shit sales where they could only give iMacs away to schools.

        Some things don’t have instant gratification and reward. Doesn’t mean you should bail on them before they have the chance.

    • SategB

      I m glad you have finally come around to my position. Though as difficult as it is for some to accept, this departure from hardware is a great thing for the company’s long term health and survival. Maybe z bit less sexy but much more stable and profitable.

      • dave

        I agree, hardware is cutthroat for one thing, and if they piss off all the OEMs the whole eco-system is screwed, the pro 3 is priced high to try to avoid that, but the devices and service thing is over. the mini is canceled. I feel bad for poor Nokia, I double dog dare Elop to show his face in finland! without a lot of bodyguards! what a dork! how does he still have a job @MS

  • pepe

    Just 10 days of sales of surface pro 3, and they phased out Surface RT which was driving the volume.
    In the earnings call they said the SP3 was selling more than the previous models.

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