FY14 Q2 - Devices and Consumer Hardware Performance - Investor Relations – Microsoft
Browse Prior Earnings Releases:
Earnings Release FY14 Q1
Devices and Consumer Hardware
Revenue growth driven by Surface sales
- Surface
- Improved sales and marketing efforts
- Sold more than double the units than previous quarter
- Surface 2 and Surface Pro 2 launched Oct. 22nd
- Xbox
- 1.2 million Xbox consoles sold
- Xbox One will launch Nov. 22nd
- Gross margin
- Product costs grew with increased Surface sales and non-product expenses incurred to ready inventory lines for Surface 2 launch
D&C Hardware revenue increased $401 million or 37%, due primarily to Surface revenue of $400 million. The general availability of Surface RT and Surface Pro started October 26, 2012 and February 9, 2013, respectively.
D&C Hardware gross margin decreased $242 million or 54%, due to a $643 million or 101% increase in cost of revenue, offset in part by higher revenue. D&C Hardware cost of revenue increased, primarily due to $645 million higher Surface cost of revenue. Surface product costs increased with higher volumes sold, while other costs grew as we ready inventory lines for the Surface 2 launch and the holiday sales cycle.
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Related Information
FY14 Earnings Release Schedule
- Q2-Thursday, January 23
- Q3-Thursday, April 24
- Q4-Tuesday, July 22
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