Yesterday July 22 Microsoft released its fiscal year 2014 fourth quarter results, and along with financial information, the Redmond, Washington-based company also provided some insight into how well certain products are performing. Amy Hood, Microsoft’s Chief Financial Officer said that the sales of the Surface Pro 3 are outpacing those of earlier versions, but she did not offer any hard numbers.
During the conference call, Amy Hood spoke about the heavily scrutinized Surface division within Microsoft. Following a nearly $900 million dollar write-off on early versions of the Surface hardware, many in the technology world have been wondering if Microsoft’s venture into producing their own hardware will actually pay off. The Surface Pro 3 has only recently hit the market, but according to Hood, the Surface division brought in $409 million in revenue during the previous quarter, which was no doubt helped by the new 12.2-inch slate.
Earlier on this year, Microsoft announced the 12.2-inch Surface Pro 3 and claimed that it was the first tablet that could really bridge the gap between laptops and tablets, but the announcement of the jumbo tablet was not really expected. Leading up to the announcement of the Surface Pro 3, many believed that Microsoft were going to follow Apple by to releasing a Surface Mini to compete with the Apple iPad mini, but after re-evaluating the tablet market, Hood confirmed that the software giant had changed their minds about releasing a new form factor, and it seems the company has made a wise decision.
There is no doubt that the consumer love affair with the tablet is on a downward slope, even Apple has been worried by the decline in sales of the ultra-popular iPad and tablets in general. Apple CEO, Tim Cook announced on July 22 that while sales of the iPad (13.28 million during the last quarter) met internal expectations, they realized that the sales fell short of what many investors were expecting. The drop in sales of the iPad marks the second straight quarter of declining iPad sales, and represents a 9.2 percent drop year over year.
There are many more changes to come from Microsoft over the coming months following the announcement of 18,000 employee layoffs, but it seems that the Surface division, and the Windows Phone division are both safe for now, but with both Windows Phone devices, and Surface devices really failing to gain traction in key markets, one has to wonder what Microsoft CEO, Satya Nadella might have up his sleeve when it comes to the huge company restructuring efforts he is overseeing.