Microsoft loses money on every Surface tablet it sells

January 26, 2014

Microsoft lost $39 million last quarter selling its Surface tablets, the company acknowledged in filings last week with the U.S. Securities and Exchange Commission (SEC). While Microsoft reported increased Surface revenue for the October to December 2013 quarter of $893 million—more than double the $400 million in the quarter ending September 30, 2013—it pegged the cost of that revenue at $932 million. The difference between what it brought in and what it laid out—cost of revenue would include not only the money necessary to assemble the tablets, but also distribution and marketing expenses—and thus the amount Microsoft went into the hole, was a brisk $39 million.To read this article in full or to leave a comment, please click here

Link: http://www.pcworld.com/article/2091049/microsoft-loses-money-on-every-surface-tablet-it-sells.html#tk.rss_all