Microsoft today announced their second quarter financial results. Surface product line up revenue was at $1.1 billion and it was mainly driven by the sales of Surface Pro 3 units. Surface revenue increased $211 million or 24%, primarily due to Surface Pro 3 units sold, offset in part by a decrease in revenue from other Surface devices sold. Surface Pro 3 was released in June 2014.
Computing and Gaming Hardware gross margin increased $49 million or 12%, due to a $522 million or 13% decrease in cost of revenue, offset in part by lower revenue. Gross margin benefited from the mix shift to Surface Pro 3.
“We again saw enthusiasm and demand around our cloud offerings like Office 365, Dynamics CRM Online and Azure, as well as Surface Pro 3,” said Kevin Turner, chief operating officer at Microsoft. “