Microsoft's Q2 2016 earnings: Surface revenue up by 29%

Last year, Microsoft introduced the Surface Book and Surface Pro 4. Today, the company released its earnings for Q2 2016 (fiscal year), which revealed an impressive increase in the company’s revenue from the Surface brand. Microsoft revealed that the company’s Surface revenue increased by 29%, thanks to the recent launch of the Surface Pro 4 and Surface Book. Surface generated $1.3 billion in revenue for the company in Q2 2016, that’s up from $1.1 billions YoY.

“Devices revenue decreased $896 million or 26%, mainly due to lower phone revenue, driven by a shift in strategy for the phone business, offset in part by higher Surface revenue. Phone revenue decreased $1.2 billion or 53%, as we sold 4.5 million Lumia phones and 22.5 million other phones in the second quarter of fiscal year 2016, compared with 10.5 million and 39.7 million sold, respectively, in the prior year. Surface revenue increased $248 million or 22%, primarily driven by the release of Surface Book and Surface Pro 4 in the second quarter of fiscal year 2016, offset in part by a decline in revenue from Surface Pro 3.”

Find out more about Microsoft’s Q2 2016 earnings here.