Microsoft’s Surface business is growing just as Windows faces Chromebook competition

Microsoft posted the second quarter of its 2019 financial results today, reporting revenue of $32.5 billion and net income of $8.4 billion. Surface and gaming are both up, but revenue from Windows licenses has slipped.

While Surface revenue only grew 1 percent in the same quarter last year, it has jumped by a massive 39 percent this year to $1.86 billion. The big jump is not entirely surprising, as Microsoft released its Surface Pro 6 and Surface Laptop 2 during the most recent quarter, alongside the new Surface Studio 2 and Surface Headphones. It was a busy holiday period for Surface, and the revenue reflects that.

Surface Book 2 and Surface Go sales pushed Surface revenue to $1.1 billion in the previous quarter, so it’s clear demand...

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