Microsoft loses money every time it sells a Surface tablet

While Microsoft reported increased Surface revenue for the October to December 2013 quarter of $893 million, more than double the $400 million in the quarter ending September 30, 2013, it pegged the cost of that revenue at $932 million. The difference between what it brought in and what it laid out and thus the amount Microsoft went into the hole, was a brisk $39 million.

It sounds impressive: Microsoft in its latest quarter doubled sales of Surface — the tablet it hoped would compete with the iPad — and brought in twice as much revenue from the product as it did in the previous three-month period. But the Redmond, Wash.-based company still managed to lose millions on its tablets. In its earnings report on Thursday, Microsoft said it sold $893 million worth of Surface tablets in the three months that ended Dec. 31, up from $400 million in the previous quarter. That was more than the $853 million in Surface sales for Microsoft’s entire fiscal 2013, which ended in June. But the company’s “cost of revenue” — what it cost to sell the tablets — was a whopping $932 million in the latest period.

Read full article

Comments
Latest stories Top stories Apple iPhone Tech Google App Samsung Android Amazon Facebook Microsoft TV Drones Robots Tesla iOS Twitter Dell Snapchat Instagram YouTube Web Wi-Fi
Thank you!
Close