Jul 19, 2013

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Microsoft loses $900 Million On Surface

Microsoft loses $900 Million On Surface

surface

Microsoft announced its fourth-quarter financials, which ended on June 30th, 2013. It had a nice boost to its entertainment business, but quite a significant loss in the hardware division.

It seems that its Surface RT tablets contributed for its significant loss of the profit, totaling around $900 million. The loss came after a number of price drops for the Surface tablets.

On the upside, the software company took in a hefty $19.9 billion for the quarter. That number is up roughly 10 percent from last year, up from $4.97 billion. Microsoft also gained $134 million in revenue for the Entertainment and Devices division, growing eight percent.

Personally, I think the Surface tablet is a cool idea, but I think that Microsoft somehow set the expectation that the device was literally a computer and not a tablet with limited computing capability. It has perhaps been setup for failure, failing to meet sales expectations.

[Source: Joystiq]