More bad news for Microsoft this week. The losses are huge, in the 2014 fiscal year Microsoft reported losses of $1.7 billion which is a lot of money to lose but Microsoft being themselves they’ve probably made that back already. Microsoft also announced that its Surface revenue was $409 million for the quarter ending June 30, not as good as they’d hoped for but $409 million is still $409 million.
Microsoft failed to mention a cost of production. They did however release data which can be used by analysts and they can come up with a rough estimate of the cost of production. Computerworld figures that Microsoft’s Surface costs for the quarter that ended in June were $772 million. That means a loss of $363 million in the quarter for Surface. Some of the money in the cost of revenue calculation was from a write-off to cover the cost of designing and producing an unspecified number of Surface Mini tablets. Microsoft reportedly produced a Surface mini and decided at the last minute to not release the tablet. Perhaps that was a wise idea, seeing how nobody is buying a Surface, a mini version would be completely pointless.
Thanks to Tweaktown for supplying us with this information.
Image courtesy of Tweaktown.
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The Surface tablets are nice, quality devices but they can almost be considered niche products, they simply cannot compete with the cheap Android tablets and cheap Android tablets is all the vast majority of people require.
The iPad is only kept afloat (barely) by the millions of iSubjects who’ll buy any junk with an Apple logo but Apple are also crying about the declining iPad sales.