Report claims Microsoft still losing lots of money on Surface tablets

A new report claims that Microsoft continues to lose money on its Surface tablets, fifty-fifty as the company claims that sales of its new Surface Pro 3 are "outpacing" earlier models.

Microsoft revealed in a recent 8-G argument filed with the U.Due south. Securities and Substitution Commission that for the quarter that concluded on June xxx it took in $409 meg in revenue from its Surface tablets. Nonetheless, the company declined to offering whatever information on its Surface costs, as information technology has in previous quarters. Computerworld claims, via their ain financial computations, that the price of Surface products at Microsoft was $772 million for the quarter. If that is accurate, the Surface division lost $363 meg.

Microsoft did admit in its SEC filing that the Surface partitioning did accept a one-time charge, due to the cancellation of a "new form factor". That's likely a reference to the Surface mini, the seven inch tablet that was in heavy development until Microsoft decided not to sell the product just a few weeks before it was due to exist announced.

Computerworld claims that Microsoft may have lost equally much as $1.seven billion on Surface development so far. That includes the $900 million write down that the company admitted it took in 2022 due to low sales of the first Surface RT tablets. Practise you retrieve Microsoft should go on to brand Surface tablets even as its losses mountain?

Source: Computerworld

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