Surface revenue doubles but not yet profitable

Surface 2 vs. Surface Pro 2

Microsoft has made official its economic results in the last quarter of 2013, which show that Surface sales are doing much better than the year of its premiere. In this last quarter, revenue from the sale of their tablets more than doubled Compared to the same period of the previous year. If in the last three months of 2012, those of Redmond entered around 400 million dollars for Surface, in those same months in 2013 they achieved 893 million.

The figures are framed by a general increase in revenue at the company above what analysts expected. In its second fiscal quarter, from September to December, the company had sales of $ 24.500 billion, about 78 cents per share. 23.700 million were expected with a profit of 68 cents per share.

Although the general dynamics is positiveThere have been divisions that are not doing as well as others. While the revenues in devices and consumers reached 11.910 million, with a growth of 13%, there has been a decrease in the money amassed for licenses by 6%.

Surface 2 vs. Surface Pro 2

Official manufacturers (OEM), consumers of Office and Windows Phone are in this bag, although each has a different responsibility. It should be noted that the PC market is falling sharply, around 6% per year, among other things due to the success of the tablet format in emerging countries, where it is the second personal computer after the smartphone. Interestingly, while Windows Pro licenses increase revenue by 20%, those that are not Pro, those of normal consumers, fall by 12%, the latter having more weight.

Amy Hood, CFO of Microsft, spoke about the growth in consumer devices. They placed 7,4 million consoles in those three months, of which the new Xbox One sold 3,9 million units in just 5 weeks. They have also perceived a greater demand for their tablets, they believe that it is especially enhanced by the good perception of the new generation of Surface. In fact, we have seen the product out of stock repeatedly during the Christmas and sale campaign.

This has allowed them to double income although not generating profits. The cost of these revenues was 932 million dollars, so in the end they lost 39 million dollars.

Ultimately, we observe an important change in the dynamics, although there is still a long way to go, as recognized by Hood himself.

Source: CNET / Beta News


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