Microsoft doubled down on Surface tablets last September, introducing two second-gen devices with new accessories to match. Has the new gear proved more profitable than the old? Unfortunately for Microsoft, it hasn't.
SEC filings dug up by PC World reveal that Microsoft lost money on Surface sales during its last fiscal quarter. From October through December, Surface sales totaled $893 million. However, the cost of those sales—including manufacturing, distribution, and marketing—amounted to $932 million. Translation: a net loss of $39 million.
This isn't the first time Microsoft has lost money on Surface sales. Last July, the company wrote off a $900-million charge related to "Surface RT inventory adjustments." A couple of weeks later, we learned that, up until that point, the Surface and Surface RT had only generated revenue of $853 million put together.
I suppose that, at this stage, Microsoft might be eager to grab extra tablet market share at the expense of profits. It's not like the company as a whole is anywhere close to the red. Still, considering Apple's gross margin lately, those Surface losses have gotta sting.
|AMD reveals suitably massive Ryzen Threadripper packaging||68|
|Google releases last developer preview before Android O release||0|
|Asus Lyra forms a small constellation for better Wi-Fi||2|
|GeForce 384.94 drivers are ready to break the law||0|
|Rumor: Specs of six-core Coffee Lake CPUs leak||29|
|Alphacool Eisblock HDX-2 and HDX-3 help M.2 SSDs beat the heat||12|
|Corsair Lighting Pro Expansion Kit lets builders turn up the lights||11|
|Gigabyte SA-SBCAP3350 puts formidable power on a single board||14|
|Adata D16750 power bank is tougher than the average juice pack||16|