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Surface sales rising as Microsoft reports profit boost

Chris Martin | Oct. 28, 2013
With a declining PC market, Microsoft has announced increasing sales of its Surface tablets.

Surface tablets

Microsoft has reported positive first quarter earnings despite a declining PC market, with sales of its Surface tablets on the up.

Although the company's revenue dropped to $18.5bn compared to the previous quarter, its net profit climbed to $5.2bn, up 17 percent year on year. Surface revenue grew to $400m with sequential growth in revenue and units sold over the prior quarter, said Microsoft. 

The boost is likely to be largely down to the original Surface models getting a price cut. The Surface 2 and Surface Pro 2 devices went on sale this week.

Although a number wasn't revealed for how many Surface tablets were sold, the news is stark contrast to Microsoft's announcement in which it admitted it had taken a $900m hit on Surface tablets.

Steve Ballmer, retiring CEO at Microsoft, said: "Our devices and services transformation is progressing and we are launching a wide range of compelling products and experiences this fall for both business and consumers,"

"Our new commercial services will help us continue to outgrow the enterprise market, and we are seeing lots of consumer excitement for Xbox One, Surface 2 and Surface Pro 2, and the full spectrum of Windows 8.1 and Windows Phone devices." added the retiring CEO.

The results include the deferral of Windows 8.1 pre-sales revenue which totals $113 million. It was Microsoft's OEM division which seemed to struggle the most with a declined seven percent in revenue. The software giant's Devices and Consumer revenue grew four percent to $7.46bn.


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