Microsoft has announced their first quarterly earnings report for 2015 and
the Surface 3 tablet is seeing massive success. Surface revenues measured $908 million, which is transforming their hardware division into almost a billion dollar business every three months. The company is also building revenue from phone hardware, taking in $2.6 billion from quarterly handset sales through what was once Nokia’s hardware business. Microsoft reported $478 million in gross margin from phone hardware as it continues its effort to build market share for Windows Phones.
Microsoft is betting big on the new Windows 10 OS, which is now in technical preview. This might be a game changer because the Redmond company is adopting the “One Windows” strategy, which will unite phones, tablets, and PCs under a single operating system. Today, the Windows market is fragmented between Windows Phone, Windows RT, and Windows 8 — three separate systems which aren’t fully compatible with each other. With Windows 10, the number-skipping upgrade which will arrive sometime next year, Microsoft will eliminate those incompatibilities with a single cross-platform OS.