Microsoft reportedly continues to lose money with each Surface it sellsWritten by Ron on April 29, 2014 - 11:56AM @ronwinbeta
According to a new report from ComputerWorld, Microsoft has been losing $300 million and counting for the Surface in the last nine months. This data was revealed from a 10-Q filed by Microsoft with the US Securities and Exchange Commission (SEC).
"In the last nine months, Microsoft spent $2.1 billion on the Surface, and gained $1.8 billion in revenue, meaning a total loss of $300 million. The biggest loss came in the September 2013 quarter, some $216 million. However, Microsoft continues to lose money with each Surface it sells," the report states.
Microsoft has reported $494 million in revenue from the Surface tablet lineup, which made its debut in 2012 and saw a refresh just last year with the introduction of the Surface 2 and Surface Pro 2. Revenue was down 45% from the December quarter but up more than 50% from the same quarter in 2013.
The Surface line of devices also bring in additional revenue since it utilizes Microsoft services such as Bing, Bing Maps, OneDrive, and Outlook.com, but it doesn't seem to be enough. Data from Strategy Analytics recently revealed that Microsoft's Windows-powered tablets now own a 6% global tablet share, in Q1 of 2014. Android, on the other hand, remains at the top with a 66% global share while Apple's iOS fell to 28%.
Microsoft has also been pushing the Surface line of devices in recent video advertisements, such as the "Honestly" campaign and most-recently a video about the Surface 2 being the perfect tool for a wedding planner.
Will the upcoming Surface Mini help Microsoft make some money? We'll just have to wait and see.