This is why Microsoft needs a Surface Pro 5 – and fast

Microsoft just revealed its latest fiscal results, with a bit of a sting in the figures when it comes to sales of Surface hybrids, which have slumped considerably – in marked contrast to recent times.

In fact, in the latest quarter, revenue from Surface devices dropped by a worrying 26% year-on-year. Compare that to the ‘best sales to consumers ever’ which Microsoft was boasting about at the end of last year.

Of course, the problem here is that the current Surface Pro 4 and Surface Book are now starting to look long in the tooth, and more and more folks are almost certainly waiting for the next iteration of either of these hybrids before parting with the considerable wedge of cash that their price tags represent.

Microsoft admitted as much, with CEO Satya Nadella observing that: “This quarter our Surface results fell short of expectations, impacted by end of product lifecycle and increased price competition.”

Compounded misery

The latter is the second compounding factor here – ever since analyst firms started picking up on the boom in 2-in-1 devices (which runs very much against the tide of the overall downturn in PC sales of recent times), more PC vendors have been rushing convertibles to the market.

And as Nadella notes, that has forced pricing to become more competitive, and with Microsoft’s devices carrying a premium price tag, they’ve suffered.

Surface fans out there have also doubtless been dismayed by the news that we won’t see a Surface Book 2 at Microsoft’s big spring hardware event next week, and it seems very unlikely that we’ll see the Surface Pro 5, either. (What we will likely see is Chromebook-style traditional notebooks running Windows 10 Cloud, pitched at the education market).

And that being the case, sales of Surface devices are going to continue to dwindle, and, for example, those who are poised to make the upgrade from a Surface Pro 3, but are waiting for the fifth incarnation to emerge, might just get fed up and jump ship to a PC manufacturer other than Microsoft.

Which is why Microsoft really needs to get a shift on with pushing the next Surface Pro out the door (and the Surface Book sequel as well – although that’s far less important as it’s a relatively niche product compared to the Pro model).

Via: The Register

TOPICS

Darren is a freelancer writing news and features for TechRadar (and occasionally T3) across a broad range of computing topics including CPUs, GPUs, various other hardware, VPNs, antivirus and more. He has written about tech for the best part of three decades, and writes books in his spare time (his debut novel - 'I Know What You Did Last Supper' - was published by Hachette UK in 2013).

Latest in Laptops
Dell XPS 13 and Inspiron 15 on a red background next to TechRadar Price Cut badge
Get a powerful XPS 13 with Snapdragon CPU for a record-low price in the latest Dell sale
The MacBook Air 13-inch (M2) on a pink background with text saying Big Savings next to it.
The MacBook Air M2 has a massive price cut thanks to the M4 launch
apple macbook air against blue background
There's a huge MacBook Air sale right now – shop record-low prices from $629.99
Dell Inspiron, MacBook and Surface Pro laptop next to each other on a orange background
Best Buy has excellent laptop deals and I've picked the 9 best offers from $139
13-inch and 15-inch MacBook Air M4 in Sky Blue
The new Apple MacBook Air M4 has a weird quirk with its performance cores - but it's nothing to worry about
MacBook Air 15-inch with M4 chip on a creative's desk with screen open
I've reviewed the Apple MacBook Air 15-inch (M4) - and it remains the best 15-inch laptop I'd recommend for most people
Latest in News
Panos Panay and Alexa Plus
Amazon's Panos Panay teases future Alexa+ devices from speakers to possible wearables
Metroid Prime 4
I reckon the Nintendo Switch 2 could launch with Metroid Prime 4 – here’s why
Samsung Galaxy Z Fold 6
New rumors predict a foldable iPhone will launch next year – and cost almost twice as much as the iPhone 16 Pro Max
Pebble smartwatch countdown
Pebble confirms its smartwatch announcement is just hours away
Logo of YouTube Shorts
Is YouTube auto-playing Shorts when you open the app? Well, you’re not alone - here’s how to fix it
Google DeepMind panel discussion
“More sovereignty and protection” - Google goes all-in on UK AI with data residency, upskilling projects, and startup investments