Microsoft Surface Posted A Revenue Of $908 Million Last Quarter, Gross Margin Positive For The First Time

Surface Revenue Q1 2015

One of the main highlights from Microsoft’s quarterly financial results was their numbers related to Surface hardware lineup. Surface Pro 3 momentum drove Surface revenue of $908 million. Microsoft said that Surface Pro 3 revenue growth is driven strong interest from students, professionals and enterprises. In fact, Surface gross margin was positive for the first time last quarter.

“Customers are embracing our latest technologies from Surface Pro 3 and Office 365 to Azure and SQL Server,” said Kevin Turner, chief operating officer of Microsoft. “Through great execution by our sales teams and our partners, we have been able to deliver our truly differentiated value to the marketplace.”

Surface revenue increased $508 million or 127%, due mainly to an increased mix of Surface Pro units sold and their related accessories. The release of Surface Pro 3 in June 2014 contributed to a 126% increase, reflecting higher premium mix of devices sold. Surface cost of revenue increased $157 million or 23%, due mainly to a higher cost per device sold, driven by Surface Pro 3.

Great news for Microsoft!

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