“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: As 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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Microsoft gives away 10,000 Surface RT tablets at education conference – June 17, 2013
Microsoft’s Surface tablets said to fall far short of predictions – March 15, 2013
Analyst: Microsoft’s Surface RT on track to join Zune and Kin in the great consumer electronics discount rack in the sky – March 13, 2013
Microsoft’s ‘Surface Pro’ tablet slammed by negative reviews – February 7, 2013
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The Verge reviews Microsoft’s Surface Pro: Too big, too fat, frustratingly poor battery life; it just feels limiting – February 6, 2013
Microsoft’s Windows RT: Circling the bowl – February 5, 2013
Gartner: By 2014, Apple will be as accepted by enterprise IT as Microsoft is today – February 4, 2013
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Microsoft doesn’t reveal Surface sales, and probably never will – January 24, 2013
Microsoft blames PC makers for Windows 8 flop – January 24, 2013
Fujitsu President: Weak demand for Microsoft’s Windows 8 killing PC Sales – December 28, 2012
Philip Greenspun: Microsoft’s Windows 8 is a Christmas gift for someone you hate – December 7, 2012
MKM Partners cuts Microsoft price target, estimates on lower than expected Surface, Windows 8 sales – December 5, 2012
Why Microsoft’s Surface tablet is doomed – December 5, 2012
App developers shun Microsoft’s Surface tablet – December 4, 2012
Microsoft Surface Pro to offer only half the battery life of Apple’s latest iPad with Retina display – November 30, 2012
Microsoft’s Surface Pro iPad killer to start at $899 – November 29, 2012
Microsoft’s Surface tablet flops, orders reportedly cut in half – November 29, 2012
TechCrunch’s Siegler reviews Microsoft Surface RT: ‘It’s time for a drop test – right into the garbage can’ – November 19, 2012
Slate reviews Microsoft’s Surface tablet: Too slow, mercilessly buggy; why is it so bad? – November 6, 2012
InfoWorld reviews Microsoft Surface RT: A disappointment; you’re better off with Apple’s iPad – October 31, 2012
Gizmodo reviews Microsoft Surface RT: Do not buy; inferior to Apple’s iPad; the worst of both worlds – October 25, 2012
The Verge reviews Microsoft Surface RT tablet: ‘The whole thing is honestly perplexing; who is this for?’ – October 24, 2012
ZDNet’s Kingsley-Hughes: Microsoft’s Windows 8 is an awful, horrible, painful design disaster – June 8, 2012
Analyst meets with big computer maker, finds ‘general lack of enthusiasm’ for Windows 8 – June 8, 2012
Dvorak: Windows 8 an unmitigated disaster; unusable and annoying; it makes your teeth itch – June 3, 2012
The Guardian: Microsoft’s Windows 8 is confusing as hell; an appalling user experience – March 5, 2012
More good news for Apple: Microsoft previews Windows 8 (with video) – June 1, 2011