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A very false narrative: Microsoft Surface vs Apple iPad, Mac
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Transformer VivoTab. XPS Envy X2 Spectre Folio. History Outline. Bill Gates Paul Allen. John W. Windows Xbox OS. Where do you want to go today? Alcatel-Lucent v. Microsoft Apple v. Microsoft European Union Microsoft competition case Microsoft v. Lindows Microsoft v. Microsoft just closed the books on its fiscal year. I didn't want to bog down this post with arithmetic, so in response I've put together a separate post that explains exactly how those numbers are calculated.
See "How Microsoft buries key numbers in its financial reports and how to dig them out " for full details.
Specifications
Warning: Includes math. No one in their right mind would have placed a bet on that number five years ago. Many companies would have given up at that point, but not one run by Steve Ballmer, who famously described Microsoft's approach as "long-term, tenacious, and partner-centric. As he once told an arena full of partners, "We don't go home. We just keep coming and coming and coming. Tenacious, tenacious, tenacious. In fact, while PC shipments overall have been flat or down for the past four years, the Surface business has been growing at a compound annual rate of better than 22 percent a year.
To put that in perspective: In less than six years, the Surface business has grown to roughly 20 percent of the size of Apple's entire Mac business. Its compound annual growth rate since is 2. And that trend is holding steady in For the two most recent quarters that Apple reported, its Mac revenues were down 5 percent and flat, respectively. By contrast, Microsoft's Surface business was up 25 percent and 32 percent in its most recent two quarters. In fairness, Microsoft's SEC filings note that the previous year comparables were "impacted by product end-of-life-cycle dynamics.
So what accounts for this steady success in a market where other OEMs are struggling?
In a word, good products. After the Surface RT disaster, Microsoft didn't have much luck with its first two Surface Pro models, which were bulky, quirky, and unlike anything the market had ever seen.
Being a showcase for the unloved Windows 8 didn't exactly help, either. And then came Surface Pro 3 , which went on sale a few days before the start of Microsoft's fiscal I noted with interest that that FY annual report was the one and only time Microsoft has disclosed its annual Surface revenue instead of hiding it in a series of arithmetic problems over the course of four quarterly reports. First look: Surface Pro 4 adds refinement and polish. This hybrid device isn't for everyone, but the small changes add up to a significantly better user experience.
Read More. The success of the Surface Pro 3 was attributable to solid engineering, as reviewers who had scoffed at earlier models gave the sleek, well-balanced newcomer generally excellent reviews.
For a sampling, see "The ultimate Surface Pro 3 reviews roundup. The Devices group, of which Surface is one part, had a terrible FY as Microsoft began its painful exit from the smartphone business. The company highlighted the October release of Surface Pro 4 and Surface Book as the major driver of that growth. In FY, the Surface business saw revenue decline about 2 percent from the prior year, a reflection of product launches that were solid but not spectacular: Surface Studio a high-priced product aimed at a narrow market segment , a refreshed Surface Pro, and the Surface Laptop , which was saddled with the weird Windows 10 S.
For the most recent year, revenues are up, by my calculations, about 17 percent, thanks to the well-reviewed Surface Book 2 and a well-stocked commercial channel that has apparently been successful at getting corporate buyers to purchase Surface-branded products in volume.