Microsoft Q1 FY20 Earnings: Surface revenue declined 4% last quarter, can the new Surface lineup improve sales?

Microsoft today reported its Q1 FY20 earnings results with better than expected revenue and operating income. The main growth driver was Microsoft’s cloud and enterprise services.

Microsoft also reported that the Surface revenue declined 4% YoY. The revenue was $1.136 billion, and this is the ninth consecutive quarter for Microsoft to hit billion dollar revenue with hardware sales. Due to product refresh cycle, Surface sales remained almost flat in the last quarter. We will see the impact of Microsoft’s new Surface lineup in the upcoming quarterly results.

Early this week, Surface Laptop 3 and the Surface Pro 7 were made available from Microsoft Store, Amazon, BestBuy and other retailers in the US. The brand-new Surface Pro X will be available next month. These three new products along with holiday sales of Surface Go and other old Surface products should increase the sales numbers of hardware group at Microsoft.

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