Microsoft’s Q4 2017 earnings: Microsoft sold less Surfaces, but at higher prices

January 31, 2018

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Microsoft’s Q2 2018 earnings are out, and they showcased a lot of growth in office and cloud, for non-gaming hardware, however, it was a different story.

Microsoft’s Surface revenue for Q2 2018 was more of a good news, bad news kind of thing.

On the good news, the firm sold more of its higher-end, premium surfaces. No doubt the roll out of the Surface Book 2 and more expensive Surface Laptop and Surface Pro SKUs helped with this.

On the other hand, the firm sold fewer Surface devices overall. Most likely due to the nonexistent low-end/low-priced Surface, with the Surface Pro 2017 and Surface Laptop starting at nearly £100 in the UK for instance.

Surface revenue increased by approximately 0% when adjusted for constant currency, but 1% unadjusted.

Microsoft gave phone revenue a perfunctory nod, and so will we. It was immaterial and dropped by $204 million.

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