In 2012, Microsoft caused a stir by releasing its first computer in 37 years, the Surface. Computing is still thriving ten years after it, and Microsoft is still rolling out annual updates, but the Surface’s massive growth is long overdue.
Microsoft tried to reinvent the tablet that became popular when the iPad was introduced to its PC market. Back in 2012, the Surface with Windows RT (later called Surface RT) wasn’t just a touchscreen dish like Apple’s iPad. Surface can act as a full PC with an optional keyboard and trackpad skin.
Apple made the iPad more Surface-like and added similar accessories over the next few years, while Microsoft, as usual, released a series of smaller updates. Since then, new Surface computers have been added to the family, including all-in-one PCs, laptops, and smaller Surface versions.
These efforts led to growth. In Microsoft’s most recent fiscal year, the Surface generated $6.7 billion of the company’s total revenue of $198 billion. That’s more than the combined earnings of more than 100 companies in the S&P 500 index.
However, the overgrowth disappeared within the first three years. In fiscal 2022, Surface sales were up its 3%, but it lagged behind other PC efforts. Apple’s nearly $38 billion Mac business grew about 8% over the same period.
Surface is not as popular as other computers. Technology industry researcher Gartner estimates it never captured more than 2.1% of the PC shipment market. Lenovo has a 25% market share, HP 19% and Dell 18%.