Microsoft is still losing money for every Surface tablet sold

When Microsoft first unveiled the Surface tablet back in 2012, many were impressed. Not only were they impressed with the design, but they were impressed with the quality of the tablet’s construction, and the concept as well. Unfortunately the Surface tablets did take quite take as Microsoft had hoped and fast forward to 2014, it has been reported to Microsoft is still continuing to lose money for every Surface tablet they sell.

According to a new report from ComputerWorld, Microsoft has been losing $300 million and counting for the Surface in the last nine months. This data was revealed from a 10-Q filed by Microsoft with the US Securities and Exchange Commission (SEC). “In the last nine months, Microsoft spent $2.1 billion on the Surface, and gained $1.8 billion in revenue, meaning a total loss of $300 million. The biggest loss came in the September 2013 quarter, some $216 million. However, Microsoft continues to lose money with each Surface it sells,” the report states. Microsoft has reported $494 million in revenue from the Surface tablet lineup, which made its debut in 2012 and saw a refresh just last year with the introduction of the Surface 2 and Surface Pro 2. Revenue was down 45% from the December quarter but up more than 50% from the same quarter in 2013.

Read full article

Comments