It's official: Microsoft's Surface is a money loser


— 6:00 AM on July 31, 2013

When Microsoft posted its financial results earlier this month, it mentioned a $900-million write-off related to "Surface RT inventory adjustments." Well, it turns out that revenue from Surface tablet sales actually came in below the write-off figure.

As Reuters reports, the Surface business' total sales were made public for the first time as part of an annual report filed by Microsoft yesterday. The report revealed that Surface sales have only amounted to $853 million "so far." It looks like the number encompasses both the Surface RT and its x86 sibling, the Surface Pro.

So, yeah. The Surface is officially a money loser for Microsoft.

For reference, Reuters says Apple took in revenue of $24 billion from its iPad business over the past three quarters, which correspond roughly to the amount of time Microsoft's Surface slates have been available. And Apple doesn't even have the lion's share of the tablet market. According to the recent figures from Strategy Analytics, Android slates had a 67% share of global tablet sales last quarter, compared to 28.3% for Apple. Windows' share of that market? A puny 4.5%.

   
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