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There Will Be No New Microsoft Surface Pro 5 Anytime Soon, As Sales Slump

With sales of their Surface PC’s down 26% Microsoft has killed off rumours that they are set to launch a new Surface Pro 5.

The announcement comes as Acer and Lenovo move to grab more share from Microsoft with new Surface competitors.

Last quarter, Microsoft saw revenues decline in its traditional PC business, down seven per cent at $8.8bn.

Revenues from the Surface hardware line fell 26 per cent, which Microsoft CEO Satya Nadella blamed on product life cycles (the Surface Pro 4 is nearly 20 months old now) and increasing competition in the sector. Microsoft’s CFO Amy Hood said that there was “no phone revenue to speak of.” Surface will continue to dwindle, we’re told.

“This quarter our Surface results fell short of expectations, impacted by end of product lifecycle and increased price competition,” said Nadella.

18 months ago, Microsoft stopped reporting Xbox numbers due to falling sales, it will be interesting to see how long it is before Surface sales go the same way as the Xbox reporting.

Gaming revenues did grow four per cent this last quarter and Nadella said he expects that to increase significantly next year with the launch of Project Scorpio, Redmond’s 4K gaming console.

It was expected that Microsoft would announce a new Surface Pro 5 at their annual Build conference this week.

Speaking last night Panos Panay, CVP for Surface Computing at Microsoft, confirmed that “there’s no such thing as a Pro 5” at the current time.

“When it’s meaningful and the change is right, we’ll put [the next generation Surface Pro] on market,” Panay explained.

He continued: “Meaningful change isn’t necessarily a hardware change, which is what a lot of people look for. They’re like, ‘where’s the latest processor?’ That’s not what I mean. I’m looking for an experiential change that makes a huge difference in product line.”

Panay claimed that the Surface Pro 4 is a product that “is going to by competitive for five years”, and that “you’ll see that same meaningful impact when Pro 5, or Pro Next, hits the market”. He did not explain why sales were slumping up against new products from competitors.

The news will come as sour news to Surface fans who will have been waiting years for an update to the Surface Pro range.

Microsoft’s last entry to the line-up was the Surface Pro 4, which was announced on October 6, 2015, and released about three weeks later.

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