While Microsoft’s Surface tablets aren’t quite a smashing success yet, they’re at least bringing in revenue now.
Microsoft reported today that Surface revenues reached $400 million for the first quarter of 2014 in its latest earnings report. That’s a far cry from the $900 million write-off Microsoft was forced to take back in July over unsold Surface RT inventory.
It’s not a huge surprise that the Surface finally began to sell last quarter though: Microsoft discounted the Surface RT by $150 back in July, bringing it to $350, and it also took $100 off the Surface Pro’s price in August. Those discounts, combined with steady improvements in Windows RT since the Surface launched, made the hybrid tablets far more compelling than in past quarters.
While a step forward for Microsoft, last quarter’s Surface revenues are a joke compared to the billions Apple makes every quarter from iPads.
Microsoft is holding its investor call at 2:30pm Pacific, stay tuned for updates from that.