Surface tablet continues to lose ground

Microsoft Corp. is in unenviable position in the tablet space. The more units of its Surface tablet that the company sells, the deeper in the hole it gets

The latest report filed by Microsoft to the United States Securities and Exchange Commission indicate that Redmond posted a $45 million loss attributed to Surface sales in the first quarter of 2014.

Microsoft reported $494 million in revenue from Surface for the period, (down 45 per cent from the previous quarter but up 50 per cent from the same quarter in 2013). However, Microsoft  also said the total cost of manufacturing and delivery of the Surface for the quarter that ended March 31 totalled $539 million.

That leaves Microsoft $45 million in the hole for the first three months of 2014.

The Surface tablet line was introduced in 2012, and Microsoft issued a refresh to the flagship device running its Windows 8 operating system in the following year.

The Surface accounted for about $1.8 billion in revenues in the last nine months. Costs attributed to the device, however, amounted to $2.1 million.

The online technology publication Computerworld.com said that in January, Microsoft credited the loss to a “higher number of units sold.” This shows that the company continues to lose money even as it sells more Surface units.

Read the whole story here

Would you recommend this article?

Share

Thanks for taking the time to let us know what you think of this article!
We'd love to hear your opinion about this or any other story you read in our publication.


Jim Love, Chief Content Officer, IT World Canada

Featured Download

Nestor Arellano
Nestor Arellano
Toronto-based journalist specializing in technology and business news. Blogs and tweets on the latest tech trends and gadgets.

Related Tech News

CDN in your inbox

CDN delivers a critical analysis of the competitive landscape detailing both the challenges and opportunities facing solution providers. CDN's email newsletter details the most important news and commentary from the channel.