“Microsoft continued to lose money on its Surface tablets throughout its just-concluded 2014 fiscal year, adding hundreds of millions of dollars in red ink and boosting total losses to $1.7 billion since the device’s 2012 launch,” Gregg Keizer reports for Computerworld.
“According to the 8-K statement filed with the U.S. Securities and Exchange Commission (SEC) on July 22, the Surface posted revenue of $409 million for the quarter that ended June 30. But unlike the two quarters prior, Microsoft did not reveal the cost of revenue associated with the Surface for the period,” Keizer reports. “Without a cost of revenue figure, it is impossible to calculate a precise gross margin, a rough measurement of profit. However, using information in the 10-K that Microsoft filed last Friday, along with data from earlier reports, it is possible to estimate Surface cost of revenue.”
“Calculations by Computerworld show that the Surface’s cost of revenue for the June quarter was $772 million. With revenue of $409 million, that put the tablet in the red to the tune of $363 million, the largest one-quarter loss for the Surface since Microsoft began providing quarterly revenue numbers,” Keizer reports. “Since the Surface’s sales debut, Microsoft has lost $1.73 billion on the new hardware.”
Read more in the full article here.
MacDailyNews Take: Microsoft’s Surface is the grift that keeps on grifting. 🙂
Buffalo Bills coach Doug Marrone says his Microsoft Surface tablet ‘didn’t work’ for portion of game – August 4, 2014
Beleaguered Microsoft’s Windows 8’s uptake falls again, now slower than Vista flop – August 4, 2014
Beleaguered Microsoft employees ‘shell shocked’ at size of layoffs – July 18, 2014
Beleaguered Microsoft’s 18,000 layoffs the beginning of a painful attempt to clean up Ballmer’s mess, says Street – July 17, 2014
Surface Pro 3 shows beleaguered Microsoft is lost – May 22, 2014
Beleaguered Microsoft is a total embarrassment – May 21, 2014
Microsoft’s Surface Pro 3: The toaster-fridge makes its formal debut – May 21, 2014
Surface Pro 3: Microsoft seems more confused about the future than ever – May 21, 2014
Microsoft shows 12-inch ‘Surface Pro 3′ tablet, starts at $800 – May 20, 2014