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. Ryszard - $603||2. Hdfisise - $600||3. Andrew Lauritzen - $502|
|4. Redocbew - $350||5. the - $306||6. SomeOtherGeek - $300|
|7. chasp_0 - $251||8. Ryu Connor - $250||9. mbutrovich - $250|
|10. YetAnotherGeek2 - $200|
|Take a video tour of our Breadbox build||24|
|National Hot Tea Day Shortbread||37|
|Deals of the week: a $140 850 EVO 500GB SSD and more||16|
|AOC Q2963PQ offers 29" of ultrawide IPS on the cheap||37|
|Need for Speed for PC embraces 4K displays and unlocked FPS||56|
|White Shirt Day Shortbread||27|
|Some Zen CPUs may pack 32 cores and eight memory channels||145|
|Snapdragon 625 SoC powers up mid-range mobile devices||17|
|HP will bring FreeSync to all of its AMD-powered laptops this year||30|