Losses mount for beleaguered Microsoft’s moribund Surface tablet

“Economies of scale continued to elude Microsoft’s Surface line as the tablet lost more money in the March quarter than in the preceding three-month period, regulatory filings showed,” Gregg Keizer reports for Computerworld.

“In a 10-Q filed Thursday with the U.S. Securities and Exchange Commission (SEC), Microsoft reported $494 million in revenue from the Surface, the tablet line-up that debuted in 2012 and was refreshed last year,” Keizer reports. “Microsoft pegged cost of revenue for the Surface at $539 million in the quarter that ended March 31.”

“The difference between what it brought in and what it laid out, and thus the amount Microsoft went into the hole on the Surface, was a tidy $45 million in the March quarter, $6 million more and 15% larger than in the period that ended Dec. 31,” Keizer reports. “Overall, Microsoft’s Devices and Consumer Hardware group — the division responsible for not only the Surface but also the Xbox video game console line — again posted a year-over-year decline in gross margin. According to the SEC filing, the March quarter’s gross margin was down 34% compared to the same period in 2013.”

Read more in the full article here.

MacDailyNews Take: Steve Ballmer, big dummyAs we wrote in October 2012:

That dumbass kickstand is yet another ill-considered, misguided, corporate committee-driven “differentiation” squirted out of Microsoft’s back door unbidden onto the public.

Microsoft is staffed with stupid and/or lazy people. There’s no other explanation besides crippling narcissism – which is a very real possibility. Most people use iPads while lounging around. All Microsoft’s Surface “team” had to do was buy some real iPads and use them for a few weeks. Steve Jobs himself even demonstrated the iPad while reclining in a comfy leather chair, not sitting upright at a friggin’ desk. Microsoft was shown the way and, once again, they failed to properly follow Apple’s lead. By now, that’s just stupid and/or lazy.

Microsoft suffers from delusions of grandeur. They think they matter and that people will buy their pretend iPad over other pretend iPads because it’s from Microsoft. Microsoft does not matter. Microsoft no longer has the power to sell superfluous products. The world already has iPad. The thinking world finally woke up and moved on from Microsoft’s soul-sapping dreck. That clueless Microsoft haven’t figured this out years ago (Zune, Kin, how many total face-plants do they need?) is illustrative of the depths of their delusions.

As with Zune, Kin, and Surface, Microsoft is unnecessary in today’s world. Their rapidly retiring/expiring IT Doofus firewall is the only thing keeping them around today.

[Thanks to MacDailyNews Reader “James W.” for the heads up.]

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46 Comments

  1. Just saw a hilarious MS ad on TV. They’ve given up marketing the surface as an iPad killer (w/Office!!) and it now a new laptop, but MUCH CHEAPER!!
    At least the new guy has his head screwed on more than ballmer but he still pushing shit up hill

    1. Microsoft’s ads are as pathetic, as Apple’s ads are inspiring. They hire actors to read a script playing a “typical” consumer, who try to justify why it’s the best choice to “compromise” between a laptop and an tablet, and buy a kludge that is a neither the best laptop nor the best tablet.

      The new CEO better give “real” Windows users a version of Windows that respects the majority of Microsoft’s existing customer base. Or those customers won’t “exist” much longer…

      1. Apple’s ads have been inspiring but the new “Powerful” ad looks like it came the same agency samsung and MS use. I hope Schiller’s “We have a lot of work to do to turn this around” email wasn’t the source of that. They should get back to ads showing the product and new features before they get copied instead of scripted singing and dancing.

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          1. There is a problem with perception because the response tree doesn’t honour authors after a certain point. When one doesn’t understand a conversational flow, it can lead to misunderstanding and violence.

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