Surface sees solid growth with $888 million in rev, close to $4B for the year

If there is any mystery why Microsoft's Panos Panay just received a promotion, you can now know your answer. In Microsoft's 4th quarter earnings for FY15, the Surface stands out as one of the few bright points for their hardware.

According to Microsoft's report, Surface revenue is at $888 million for the quarter, which is up 117%. For the 2015 fiscal year, all Surface revenue exceeded $3.6 billion an increase of 65% from the previous fiscal year.

Microsoft attributes the growth naturally to the popularity of the Surface Pro 3 and the recent introduction of the Surface 3.

Although not mentioned in the report, Microsoft is expected to launch a Surface Pro 4 in October according to our sources. The introduction of that device will undoubtedly continue the robust growth for Surface as a brand heading into 2016.

On Friday, AT&T will become the first US carrier to sell the LTE-enabled version of the Surface 3.

Source: Microsoft (opens in new tab)

Daniel Rubino

Daniel Rubino is the Editor-in-chief of Windows Central, head reviewer, podcast co-host, and analyst. He has been here covering Microsoft since 2007 when this site was called WMExperts (and later Windows Phone Central). His interests include Windows, Microsoft Surface, laptops, next-gen computing, and for some reason, watches. Before all this tech stuff, he worked on a Ph.D. in linguistics and ran the projectors at movie theaters, which has done absolutely nothing for his career.

  • That's the bridge in japan... One of the most thrilling roads to drive
  • Eshima Ohashi Bridge
  • Still waiting on a Surface phone and Surface ultrabook.
  • That would scare me sh*tless to drive across.
  • iPads Net Profit of 10.9 Millions ? I know, Surface numbers, I'm just comparing.
  • iPad? wrong website man
  • Nope. I'm just curious to compare Surface tablet with iPad's sales.
  • I don't have the numbers (just do a search on Apple's annual or quarterly report), but I do know that iPad sales are falling (in the double digits) and Surface sales have had double-digit growth the last few quarters.
  • iPad has 76% marketshare in the >200$ tablet market. I guess that's pretty solid.
  • Here you go...
  • They are rumored to be preparing an ipad pro at 12 and 14 inches I hear. Could be why there hasn't been any innovation with the thing current pad since it's release. Would be interesting if they did, I doubt anything new or innovative coming from Apple now though since Jobs kicked it. The apple watch was a flop just it was branded apple they sold through out of 3 million pretty quickly. Now they're well stocked and sells are tapering off.
  • More of that crazy Apple innovation, look we gave you a bigger screen and now its as big as your laptop. The Next BIG Thing!
  • Why do you guys always bring in Apple? That's a loser mentality really!
  • Microsoft sells Hardware, Apple sells hardware. We are always comparing things, it's a human thing.
  • In this case it's a stupid thing. So you make yourself look stupid ;)
  • Well it's not a stupid thing to me, so my comments was for someone who also like to compare, if you don't I think you could just ignore it and stop making the internet an awful place.
  • " Zapella Tiago   Well it's not a stupid thing to me, so my comments was for someone who also like to compare, if you don't I think you could just ignore it and stop making the internet an awful place." its a typical defense mechanism. your post is trolling this blog.
  • No I'm not. I thought the Surface were better than iPad on this one. That's why I post as a "question". Not an Apple fan. Otherwise my twitter wouldn't say "MS Enthusiastic"
  • At the moment, the iPad sells more per unit than the Surface but the big difference is that iPad sales have been going down for almost 2 years now (and has actually tumbled down to 2011 levels) whereas the Surface has been on the rise for several quarters now (65% YoY).
  • Comparisons help people be more knowledgable about the world.  It also helps people make better decisions about a device they might purchase... or stocks.  
  • Correct. That's why it's important to know that iPad sales have been tumbling down for more tha a year now and is actually down to 2011 levels. Whereas the Surface sales have been on the rise from last year.
  • iIdiot above^^^ who buy iPad thinking it was a real computer.
  • It's direct competition is the Mac Air and new MacBook. What did they sell
  • It's a tablet. That keyboard it's just accessory, right?
  • Plug it to a screen, add a bluetooth mouse and keyboard so you'll get a full PC. That's the difference between iPad and Surface.
  • Exactly. Surface brand has a bright future. Just need to be more international.
  • Mac sales are up 33% year over year, about 6 billion US$ in revenue in Q2/15. iPad revenue is about 5 billion US$. Oh and for the "And what in India???" guys: iPhone sales in India are up 93% ;-)
  • lol, apple fans can't resist. want's to steal the fire in everything.
  • Mac sales are only up 9% YoY
  • I get where you coming from.  You want to compare a bushle of apples to two apples.  By comparing a Bushel of apples to two apples you get the feeling that Apple is superior in sales.  That would be a false hope.   Apple controls their bushel.  They make their own software and their own hardware.   They don't have to worry about anyone taking away from their bottom line. Microsoft on the other hand is responsible for the  basket and two apples.  They have to Make a profit with the surface and not destroy HP, Dell, Asus, Acer.. and the millions of other Chinese Start ups.   If you want to crunch numbers.  Crunch Apple vs (microsoft, dell, Asus, Acer, Toshiba......) 
  • You have a good point, didn't realize how SP3 could compete with others "laptops" manufacture. Although we don't see a huge number of Windows Tablets out there, isn't a fairy comparison, indeed.
  • Nice. Really nice. 
  • Well I may get a Surface 3 when it's at $299 this holiday, I refuse to pay more than $300 for my electronics.
  • Then IMO you devalue your on product with that mentality. And that's sad.
  • I would have loved to buy the Surface 3 but with a price tag of €609,00 i take a huge step back. This is with the Type Cover excluded. I paid €600 for my Surface 2 with Type Cover and a nice 64GB Micro SD card. I'll wait for the Surface Pro 3's price to drop here or wait for a good promotion. Posted via the Windows Central App.
  • lol. At that price, you will be looking at used Surface 3.
  • You know how can you grow even more? Stop the staged distribution bs and go for global distribution instead.
  • They don't have an infinite supply of surfaces. It's unlikely that they have enough production to sufficiently stock the entire world at the same time. Posted via the Windows Central App for Android
  • Gee, its almost as if there was an article written about this a week ago...
  • Up 117%? Heh.
  • When the numerator (final value) is more than the denominator (initial value), then the percentage is likely to go above 100%.
    Example: A thing usually sells in quantity of 1, but some fine day it sold in quantities of 2. Thus, making the percentage growth to be 200%.
    :P :P
  • Waiting for the phone numbers?
  • 8.3 million phones
  • When in India..?? We are waiting for Surface...
  • That's what making a great hardware gives you... Now with these new flagship phones and new OS... Hopefully the smartphone division joins the party
  • + 940
  • Maybe +950 Posted via the Windows Central App.
  • Having read between the lines over the last months the only thing that appears to be certain about the Surface Pro 4 at this point in time is that it is not going to come in cheap (which is obviously fine but even when compared to the latest Surface Pro 3 I expect prices to increase significantly)
  • I expect the price to stay the same.
  • The price will be constant, I think. They have already reached the peak point of the premium they can charge for the Surface for it to sell well.
  • Good! Now announce the Surface Pro 4 with a new Surface Phone and I'll consider breaking out my wallet!!
  • No Surface Phone... why does everyone want to confalte the two brands? Leave Lumia and Surface seperate
  • I'm fine with that providing Lumia breaks away from the boring old Nokia designs that MS has been using for the last several releases. It's time for something new, fresh and innovative. Hopefully this starts with upcoming flagships.
  • Whoa... the L930 is gorgeous. But to your point it IS the one device that really breaks away from the traditional Lumia desing aesthetic and skews more towards Surface like design. Im totally ok with Microsoft converging the design languages of the two, i just dont want to see them converging the branding
  • Wrong.....Lumia is budget at this point, Surface = premium and professional
  • Wrong. Surface = tablets Lumia = phones
  • I'd love a Surface Phone but if they use the same white texture then it will scratch easily. The black material on the Surface 1 (RT) was not so easily scratched. Posted via the Windows Central App.
  • It's best not to mix the Surface and Lumia brands. It's the same reason iPhone and iPad aren't the same brand.
  • I can't help but think that if windows phone became surface phones that they would sell better maybe show that quality equals windows mobile devices
  • I think the Surface brand and design on phones would give the average customer a more 'premium like' impression. Posted via the Windows Central App.
  • I think if there is to be a surface phone it would be with an Intel chip.
  • No. Lumia = phones Surface = tablets It's best not to mix the brands. Brand confusion is a marketing nightmare.
  • People wanting to brand a phone as surface beware, line extension (marketing term) is usually bad in the long run for a brand. Surface means convertible tablet with kick stand, if you make a phone then what does surface mean?
  • this guy gets it.
  • This. Basically. Microsoft aren't silly enough to pollute either brand.
  • Yes, best not to mix the two brands and cause confusion.
  • P​lease stop the iPad comparison. It's a notebook. Now what are the mac air numbers compared to the surface 3?
  • Microsoft Store section >> Tablets.
  • A tablet that can replace your laptop...
  • Good news. More reason I think it's high time the surface needs an even better tailored windows 10. I think the time is right to go forward more with windows 10. Introduce live tiles, improve native ink-to-text recognition features to enhance notetaking functions, push for Redstone updates, prioritize more languages currently not supported for cortana, and improve rescaling and rewrapping of sites for edge, landscape and portrait orientation ​
  • Surface has more revenue than all of AMD.
  • Considering AMD is now worth 1/4 of what it was at the time of the ATI aqquistion... I'd imagine my beat up Accord is worth more right now. 
  • Awesome!!! 
  • The Lumia brand should be killed in favor of a "surface phone or sPhone", except in emerging countries and off contract carriers.
  • No. Surface = tablets Lunia = phones
  • Agree. Lumia stands for Windows phone. Budget and premium.
  • I hope they introduce a Surface 4 based on Intel Core M and bring dedicated graphics card options to Surface Pro Lineup. Plus, I'd love to see a bit more of metal in keyboard accessory plus as good a trackpad as apple has for its macbooks will be a welcome addition.
  • That would defeat the purpose of a tablet imo.  At this point battery life comes first, and the addition of a dedicated graphics card would eat up battery space, room, and become quite a bit more energy hungry.  I think that the new Skylake iGPUs will offer all the power we desire in a day to day porta computer. 
  • yeah agree and in no way should they go down to a Core M when the new 5th gen Core i5 5250U is pulling in their HD 6000 graphics and its Max TDP is down to 15 Watts. This is a Pro device is should stay with the Core i3,5,7 family.
  • I'm really glad Microsoft turned the Surface line of products around. I bought a Surface RT on its release day and it was fraught with issues. They solved some of those up with the Surface 2, but ultimately, Windows RT was a huge limitation (and confusing) for users. The Surface Pro 1 and 2 had full Windows 8.1, but the tablet was thick and heavy. With the SP3, Microsoft was finally able to deliver powerful hardware that was attractive and ran the full Windows operating system. The SP4 should be even better wtih Windows 10--despite some concessions MS has made with the touch interface--because 10 seamlessly blends Win 32 and Modern applications. SP3 has been a hit with not just consumers but business, as well. Anecdotally, several people at my job use Surface Pro 3's and love them--and they aren't tech savvy, these are people who do accounting and administrative work. I hope the success continues.
  • As I type this comment on my SP3, I'm glad to have contributed to those numbers... :)
  • I have over $300 in Bing rewards saved up for the next Surface! Just waiting.
  • how did you manage that? I can barely get enough points to get free Hulu.
  • Lol me too.
  • And Surface is not even available in may countries. Here in the UAE, there are so many people whou would and could buy this product.
  • IPad revenue over the year: 5.4b -> 4.5b Surface revenue -> 450m -> 890m If the trend continues, tablets may well be replaced by 2 in 1s and Apple will be reduced to phone-only business.
  • So declining iPad sales made up 4.46 billion of Apple's revenue (a 22% drop on the previous year). On the other hand the Surface (Microsoft's competitor to the iPad) has revenue near 4 billion (a 65% increase on the previous year). The Microsoft Hybrid solution is now taking off and I predict it will dominate the market over the next year with Windows 10 free download coming out next week.
  • Im holding out for Surface pro 4 :) Im hoping for Skylake cpu and the camera for Hello login.