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.
|1. BIF - $340||2. chasp_0 - $251||3. mbutrovich - $250|
|4. Ryu Connor - $250||5. YetAnotherGeek2 - $200||6. aeassa - $175|
|7. dashbarron - $150||8. Lucky Jack Aubrey - $100||9. Captain Ned - $100|
|10. Anonymous Gerbil - $100|
|The Tech Report attends Silicon Valley Virtual Reality 2016||2|
|Antec's P9 Window is a mid-tower case with a view||0|
|Nvidia 365.10 drivers are Game Ready for MOBAs and Forza Apex||7|
|Intel cancels Broxton and SoFIA smartphone SoCs||11|
|PC Perspective pokes and prods the Radeon Pro Duo||81|
|Microsoft finalizes closing of Lionhead Studios||18|
|AMD completes spin-off of its assembly and test operations||31|
|Here are the winners of our Macrium Data Disasters contest||15|
|Deals of the week: Asus' MG278Q display for $400 and more||25|
|LOVE THIS ARTICLE. MORE OF THIS PLEASE.||+41|