On Tuesday, Microsoft launched its Surface laptop which will be available to customers on 15th of June this year. Microsoft also launched their new Windows 10 S Operating System. The company has laid an emphasis on integration of hardware and software to deliver a uniquely satisfying personal computing experience.
The aesthetically pleasing design, superior hardware and user friendly software has been priced at $999. Company VP for Microsoft Devices, Panos Panay in his online blog described his philosophy behind Surface Laptop in these words, “We built Surface Laptop to do two things: refresh the classic laptop form factor that our customers, especially college students, have been asking for; and make a Surface that works seamlessly to showcase the best of Windows 10 S.”
Last week, Microsoft (MSFT) released their third quarter earnings for the fiscal year of 2017. Microsoft’s revenue increased by $1.4 billion or 22% when compared against the same quarter last year. The upward drive in revenue has been due to the acquisition of LinkedIn and higher revenue from Office 365.
However, results for Surface this quarter were bleak; revenues for Surface fell by 26% with sales falling to 831 million. Adding to Microsoft’s worries was the increase in operating expenses which jumped to 12% from last year’s quarter. Industry Experts have attributed the acquiring of LinkedIn as the primary cause for hike in expenses. Although, this was first quarter for LinkedIn as full partner of Microsoft, LinkedIn brought in revenue of $1 Billion.
Post the third quarter results, Microsoft (MSFT) stock dipped 1.5% on a slight revenue miss – $1.62 billion short of the expected results. The launching of Surface Laptop and Windows 10 S helped Microsoft (MSFT) regain the momentum. With the launch of new Surface Laptop and Windows 10 S, Microsoft aims to penetrate the market and increase their dismal revenues.