Surface Business Grows 50% to Nearly $500 Million in Revenue

Microsoft released its third quarter (Q3) earnings earlier today for fiscal year 2014 (FY14). This is the first quarter under new CEO Satya Nadella. The earnings report contained a number of interesting pieces of information including how the Surface business is doing. Microsoft has been relatively quiet about the Surface business since it had to do a $900 million write-off last year.

Compared to last year Surface revenue is up 50% to $494 million. Microsoft also stated they are seeing an increasing mix of second generation (Surface 2) and Surface Pro 2 devices. It appears Microsoft’s investment into tablet hardware is starting to pay off and the Surface may be another multi-billion dollar business for Microsoft next year.

Surface Xbox Q3

Source: Microsoft

About the author  ⁄ Suril Amin

Suril is a scientist, journalist and obsessive Microsoft observer. He holds an advanced degree in Biotechnology with minors in Biochemistry, Microbiology, and Molecular Biology. Send him tips on twitter: http://www.twitter.com/surilamin

  • ROLO_ONFIRE

    Great, I love my Surface RT, I wouldn’t want these devices to die.

    • NGM123

      Same, love my Surface. Just wish they’d fix a few minor quibbles then this thing is bomb proof. Saving anything to added SD cards is such a drama, lack of apps for RT and a few others, but over all love my Surface (all 4 of them

      • Orc

        Actually you can incorporate your SD card to your main storage. Its no different then moving your picture map from C to D.

  • GG002

    I’ve never before had or touched a tablet (like my Surface RT) that so much feels like it was made with a heart and soul. Sure, iPads are nicely built, but they don’t feel genuine or like something made to respect. And don’t get me started on Android tablets.

  • NGM123

    How about getting rid of the pox ridden “g” on the start screen photo !

  • Guest

    So they sold 6 rather then 4…oh boy let’s celebrate :(

    • Orc

      If they sold 6 Surface devices for $500 million. They should be really happy. That’s a premium device.

      • hushv

        lol :)