Surface revenue goes down!

Q4 2015 Surface revenue up

Microsoft has announced their latest earnings and it’s not all good news for them.

In a nutshell:

  • Server products and Cloud derived revenue have increased by 12%.
  • Microsoft

5 Comments

  • I really don’t find myself surprised.

    The Surface Studio – for all that it was more successful than expected – was never going to be a high-volume product. Apart from the Studio, they haven’t released anything this year.

    As such, I have to agree with the conclusion in the article: the Surface division is doing as well as can be expected of them. I expect that the Surface Pro 5 will sell very well if it’s as thoroughly developed as the timing implies.
    More than anything, I’m personally hoping for significantly longer battery life and a thunderbolt type c port.

  • I would not expect Surface revenue to be increase these last few months because of the news that a new Surface Pro is soon to be introduced, and with greater battery life, no fan, an improved display, and other features. The average person will hesitate in purchasing the existing Surface Pro 4 in anticipation of the Surface 5. At least that’s what I think. Thus this decline in revenue should not at all be unexpected.

    Arguably, Apple is not innovating much these days with the MacBook Pro, but why should they? They have a huge fan base. Apple appears to be ensuring it hangs on to most of their well earned fan base along with the incredible success it has earned. When you have the kind of crazy success you’d have to be an idiot to screw around too much with that formula. And unlike Microsoft’s mistakes of the past, I think Apple is carefully monitoring their hardcore fan’s response to all this Surface stuff; how can they ignore it. Those guys are shrewd. I have noticed, hardcore Apple fans are only slightly annoyed that Apple’s innovation is slow at present. Sure, they’ve lost some folks to Surface, but I don’t know if there is yet a significant migration from Apple to Microsoft. It’ll take quite a lot to get a significant percentage of those users to really take the leap. Again, you can be Apple is seriously focused on this. Apple is not stupid.

    And so Microsoft cannot screw around with their new, upcoming product if they want to win a significant number of those users over. Whatever the Surface Pro 5 turns out to be, it must be unquestionably awesome, period.

    Remember, Windows 8 was a fiasco; Microsoft clearly was not listening to what customers wanted. But they finally did turn it around, but almost too late, and thus we witness the bypass of Windows 9, which resulted in Windows 10 (along with Surface 3 & 4). Also, those Microsoft projects to develop a Surface tablet were no doubt hair-on-fire projects commissioned to counter the iPad’s success. Seems that Microsoft has had significant success, but they have yet to arrive, at least in my opinion.

    It just may be that the upcoming Surface Pro 5 (and new Surface Book) will truly jolt the market and compound Microsoft’s momentum; it is a real possibility. I hope they realize this for their sake.

    Whichever way this all turns out, I must say that I really like what this competition between these titans is producing. Engineers in both camps are pushed to the edge…and we the end users ultimately win.

    Kinda of like the Super Bowl between the Falcons and the Patriots; it was not a blow out. Ha! You really did not know who was going to win. I was crazy and had most on the edge of their seats. 🙂

  • I am using surface pro 3 for 1,5 years. Although I am very pleased from some of the advantages of this tablet/computer I have several and often problems using it. These problems as well as the high price of every new model made me avoid changing to next generation of surface pro 4.
    To be honest when I decided to buy surface pro 3 I was expecting that a company like Microsoft would provide better stability and reliability. I am also extremely disappointed from the way they provide technical support due to the assembly methods the use to manufacture surface products.

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