Microsoft Enhances Its Surface Portfolio



New features

On October 2, Microsoft (MSFT) announced several enhancements to its Surface product portfolio. These enhancements could help boost Microsoft’s Surface product sales. The new matte black Surface Pro 6 is powered by Intel’s (INTC) eighth-generation processors and starts at $899. In addition, the new Surface Laptop 2 is integrated with the eighth-generation quad-core Intel processor and is priced at $999. Microsoft also enhanced its Surface Studio 2 with 50% more powerful graphics. The price starts at $3,499. All the devices are expected to be shipped on October 16. The company also announced the new Surface Headphones, which are integrated with Cortana and priced at $350.

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Surface business trends

Microsoft’s Surface revenues continue to fluctuate. However, in the fourth quarter of fiscal 2018, Surface revenues rose 25% YoY to $1.2 billion. The graph above shows Surface revenue trends in the last five quarters. During the period, revenues grew at a CAGR (compound annual growth rate) of 5.7%. Thus, these enhancements to its Surface product portfolio could drive the company’s Surface sales going forward.


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