“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.]
Related articles:
Why Microsoft’s Surface utterly failed and Apple’s iPad succeeded wildly – July 19, 2013
Microsoft massively discounts anemic-selling Surface RT tablets to schools worldwide – June 18, 2013
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
9 out of 10 businesses support Apple iPhones and iPads – February 6, 2013
Apple’s iPad dominates tablets with 81% Web usage share; Amazon Kindle Fire distant 2nd with 7.7% – February 6, 2013
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
Windows 8 bloat: Microsoft’s 64GB Surface Pro will offer users only 23GB of available storage space – January 29, 2013
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
I never thought I’d say something like this, but…I feel sorry for Microsoft.
Ummm….., Nah. Karma. MS and ilk rode Apples (and our) butts long and hard, making fun and taking pot shots at us for 20 years or so.
Yup. And I just love the photo above of uncle Fester. It’s a classic.
I have always found it difficult to say something appropriate when someone passes away. This is a lot like that now. I can’t speak poorly of the dead.
Try not speaking then.
Brilliant. I guess I can just stand around and ignore their pain. Why don’t more people do that? Wait, they already do that.
Comparing microsoft’s downfall to an actual person dying doesn’t seem sincere.
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
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…
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.
Microsoft pegged cost of revenue for the Surface at $539 million in the quarter that ended March 31.
The debauchery of virtuosity.
Language of the crazies in the 21st Century.
“Debauchery” — a new word, very nice 🙂
The word “debauchery” is derived from the Scot. (obs) “deuchbaery” modernly spelled “douchebaggery,” a currently accepted term for “Microsoft.”
You got me to think about it. But I still don’t.
Oops. hannahjs, that was for you. I’m lame at using the MDN app.
The MDN app sucks. Because of its nebulous hierarchic presentation, it confuses conversations. This leads to unfortunate misunderstandings.
You took the words right out of my mouth. Only when they were in my mouth, they were smaller words that didn’t sound as smart.
Utilizing sesquipedalian words to make your writing sound grandiloquent is the most elderly imposture in the tome.
You have to use them with intent and for effect, just like a choice of weapons. Elderliness will not affect lethality in their dispatching of mocking upstarts.
Is it really so hard to tap the comment to which you wish to reply and tap the reply icon? I cannot imagine it being any easier or logical.
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.
There’s an urban legend of fatalities.
Yes, catalogued under ‘FOAD rage’
Oh joy, a jolly new acronym for my collection.
Goodbye and good riddance.
I wonder about samdung’s cost of revenue when you figure in 12B in advertising for their BOGO’s.
So does this mean they’re calling off the iPhone Funeral?
Oh that was classic MS stupid stunt.
No, but I do understand they had a hush hush easter service.
Another fine MDN take.
Microsoft loves punching themselves in the face!
Next on deck: BOB OS 2014!
I have been waiting to hear this good news about ms losses for a long time and am vey happy to hear this 😜😜
And by a long time, you mean since three months
Reluctantly, I had to buy a Windows tablet for work to use when travelling to meetings with one app where the iPad version is lousy. Coming from a Mac/iPad/iPhone background meant even though my choice was forced I wouldn’t settle for any plastic crap. The one device I’ve found that met my needs of small, light, and well and thoughtfully made without gimmicks for the sake of it was a Lenovo Thinkpad 8, and even then once you’re past the hardware it’s like stepping back three years – the Windows app store is packed with duds, dreadful knockoffs and non-apps. While the iPad has wonderful, console-quality stuff like Monument Valley they’re still on games that look like space invader rip-offs non-optimised because the devs don’t know whether their game will be running on the cheapest low-res tablet you can buy or a screaming fast gaming laptop. Microsoft can push the surface until they’re blue in the face – fact is it’s a lousy tablet because it’s too big and expensive and the software is awful, a lousy laptop because its floppy covers mean you can’t actually use it on your lap, and even if it wasn’t, the ecosystem is still beyond pathetic.
But, but, but . . . it clicks and you can dance with it and it is almost a laptop and it almost has a useful function and other stuff, right?
Did I forget to mention that it has a kick stand for when you want to try for a field goal?
zombies probably got 3, plays with the kick stand all day. Keeps him happy.
Look at the type of people Microsoft hires. Over estimated, super-degreed crap artists.
As Steve said, Microsoft just does not have any class.
Microsoft’s just bought a loss making Handset company too!
Trying to cram everything in to everywhere is not a good strategy. Windows 8 is the first touch GUI that can’t be touched in 50% or more desktops, and Surface is the first mouse driving GUI with out a mouse. Using this crap you can easily find your self using a touch browser and a conventional one simultaneously, and off course, disjointed. The magic of the iPad is that anybody can use one. The trouble with Windows 8 is that even Windows veterans are having issues getting around it, how can you expect the general public to embrace such a disjointed implementation.
The Surface’s cover is the best reason to not buy a Surface. It can’t stay closed. If you don’t hold it right it will flop down and can detach very easily. Apple has a patent on the magnetic cover, however MS could have some kind of claps. I find it funny how the press, both for and against, never points this out. MDN it should be your first line in your comment.
What really grinds my gears is the fact that Microsoft undoubtedly have some exceptional engineering talent working for them, but what utterly hamstrings the poor buggers is a total lack of vision and focus in management.
As much as I despite Microsoft, I feel sorry for all that talent going to waste.
=:~)
Ballmer pretty much cleaned out the entire talent pool when he introduced stack ranking.
Putting a desktop OS on a tablet, DUMB!
Nowt wrong with putting a desktop-class OS on a tablet—that’s exactly what Apple did with the iPad. The difference is removing stuff not pertinent to a tablet and designing a UI that was. Fundamentally, iOS and OS X are the same.
Damn neat trick!
=:~)
“When all you have is a hammer everything looks like a nail”
MS obviously thinks Windows is the cure for everything. I always viewed it as an affliction.