Microsoft Surface revenue declines due to product transitions, phone revenue negligible

Microsoft has just reported its earnings for the last quarter of its 2017 fiscal year. Redmond reported a revenue of $24.7 billion (non-GAAP) and $23.3 billion (GAAP). The net income was $7.7 billion (non-GAAP) and $6.5 billion (GAAP.)

The Surface line, in particular, saw some decline, shrinking 2% compared to the revenue it received last year, coming out to $948 million. This is attributed to product lifecycle transitions.

In Q4 2017, Microsoft launched two Surfaces as well as expanded the sales of its Surface Studio, taking it worldwide. While the exact numbers regarding the transitions, aren’t available at the moment, it’s possible that these transitions and the logistical expenditure are what contributed to the decline in revenue are a hit on the firm’s finances as regards to Surface.

We’ll be able to get a clearer image of the Surface Pro and Surface Laptops effect on Microsoft’s revenue in Q1 2018. Especially after purchases are made for the new school term and semester.

Windows phones were immaterial in terms of revenue to Microsoft, their sales having declined by $361 million. Now they should cost the firm only 4 million. Woo hoo.

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