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Surface Lineup Brought In $4.3 Billion For Microsoft In 2016

Reason enough for Apple to be concerned? Not quite. But this growth that the Surface lineup has been building upon for a few years now should be a bit worrying for the Cupertino based company.

More so, as Redmond has specifically targeted Apple hardware customers with its products.

The technology giant revealed its latest financial earnings for the final quarter of the year last week, reporting some solid numbers. The Surface business had revenue of $1.3 billion in Q4 2016, which actually corresponds to Q2 FY 2017 for Microsoft.

Which meant that the total revenue for the year reached $4.3 billion.

Though it all, the company has marketed the Surface as a replacement for the iPad from the very beginning, while the Surface Book was billed as an alternative to the MacBook. These were joined by the Surface Studio that allowed Microsoft to step into the AIO PC market.

And while these do not line up with the overall hardware numbers that Apple generates, the difference is not really all that huge when you drill things down further.

For example, Apple saw revenue of $28.16 billion for the iPhone in Q4 2016, which is down 12.6% from the $32.21 billion in the same quarter in 2015.

However, the iPad division, that Microsoft specifically targets, posted revenue of $4.26 billion in the final quarter of 2016, down 6%. What’s worse for Apple is that sales of its tablets are declining with every quarter, and Surface has the potential to overtake it in the near and upcoming future.

Particularly, if things keep on going up for Surface, and continue dipping for the iPad.

Obviously, the Surface devices are also competing with other high-end premium Windows 10 based tablets and hybrids. But pound for pound, the Surface versus the iPad fight is more interesting.

More so, as Microsoft has also picked up high praise for its Surface devices recently.

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