Microsoft Surface Updates: Tablet Gains Company Millions In Profit, Apple Falls Behind

By Adie Pie , Oct 24, 2016 04:19 AM EDT
There is no doubt that the Surface products from Microsoft are some of the most popular items in the tech market. But the company’s recent Q3 earnings only proves just how popular the Surface Book and Surface Pro 4 have been. (Photo : Nigel Treblin/Getty Images)

This year, the world started to greatly appreciate the Surface products from Microsoft, specifically the Surface Book and the Surface Pro 4. And while the units have been generally well received, the Redmond-based company just proved how popular the line of products have become. With an undisclosed number of units sold, the company has made millions in profit.

As Forbes notes, Microsoft confirmed via its Q3 earnings report that over US$926 million in revenue was obtained from the Surface devices alone. This number is 28 percent up from the same quarter last year, or US$672 million. Considering that these numbers only represent the sales profit from two products, the Surface line undoubtedly has contributed greatly to the company.

The publication goes on to state that the Surface devices are, however, still second in the market. Currently, Apple's line of iPads and Macs are still the leaders in the industry, despite complaints that there have been very little improvements made between generations. To get the full picture, though, one has to take note that sales for Apple products, while are still higher in number, have been declining in the last few months.

C|Net claims that in the last ten quarters, Apple has experienced a constant decline in sales despite still having the higher numbers when compared to its competitors. The public will get a more comprehensive view next week when the company releases its Q4 earnings. Analysts expect sales revenue from the iPad alone to hit around US$4.3 billion.

Nevertheless, Apple is experiencing a declining trend, while Microsoft is seeing jumps in its numbers. From the looks of things, the Surface devices are looking to one day dominate the market by constantly improving on its products, both in terms of software and hardware. Meanwhile, the Cupertino-based company has been constantly under fire for its lack of innovation in recent years.

One thing that Microsoft definitely has over its biggest competitor is that each generation is notably better than the last. While the Surface Pro has been developed over and over as the years have passed, the family has not lost its footprint in the market. However, users have been consistently content with the items that have been updated.

Another thing that Microsoft has working for it and its Surface Pro and Surface Book line is that Windows, as an operating system, is also gaining on its competitors. Its products and services have greatly improved over the years and is arguably the first choice for most consumers. The company has time and time again, proven it can provide both power and efficiency without sacrificing price and design.

Overall, Microsoft reported a revenue of US$22.33 billion, which beat Wall Street's estimate of US$21.71 billion. The report upped Microsoft's stock by 5.5 percent. Granted, these numbers do not beat Apple's and likely will not in the next few years. However, if the current trends continue, it is only a matter of time until Apple is overshadowed by Microsoft. Things will continue to unfold as the companies have back to back events this month.

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