Microsoft Corporation (MSFT)’s Surface Sales Nearing $1 Billion

Satya Nadella’s efforts are finally paying off nearly one year after taking over as Microsoft Corporation (NASDAQ:MSFT)’s CEO, quarterly sales on cloud computing and the tablet front continue to top estimates. Improvement in sales for the Surface tablet division came on the back of release of Surface Pro 3 in the quarter.

Surface Sales More than Double

The surface division on its own generated a total of $908 million in revenue, up from $400 million reported a year ago. The surface is expected to enjoy even further success next year when Microsoft Corporation (NASDAQ:MSFT) unveils Windows 10. The new operating system is set to solve a number of problems that people have complained about on Windows 8.

The Surface tablet might not be the blockbuster device that people would wish to have, but the amount of success it has enjoyed over the past year validates Microsoft decision to keep it around. The amount of success that Surface Pro 3 enjoyed came down to the upgrade in features carried out by Microsoft. A change from 10-inch 16:9 aspect ratio to a 12-inch screen and 3:2 aspect ratio highlights why it is more of a business machine.

IPads Threat

Microsoft Corporation (NASDAQ:MSFT) could rake in a billion dollar worth of sales heading into the holiday festivities where sales are expected to improve. Surface tablet could enjoy more success as Microsoft tries to position the tablet as an enterprise machine suited for business customers.
The only concern at the moment for Microsoft Corporation (NASDAQ:MSFT) is the fact that the Surface Tablet is not competing enough against Apple Inc. (NASDAQ:AAPL)’s iPads which sold a whopping 12.3 million in the last quarter.

Microsoft Corporation (NASDAQ:MSFT) is also benefiting a great deal from the PC market as more companies continue to upgrade their aging machines. The company’s total revenue for the first quarter ending September 30, 2014 came in at $23.2 billion against estimates of $22 billion.