Alan Smithee

Microsoft Surface is Still Hemorrhaging Money

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Despite what you may see/hear, Microsoft’s tablet has a ways to go before it becomes profitable for the computing giant. Sure it seems impressive, they managed to more than double their income from sales versus the previous quarter as they brought in $893 million in the quarter that ended 31 December 2013.

Microsoft Surface

In just the previous quarter, they sold a paltry $400 million of their Surface tablets. Even though they brought in nearly enough to cover their costs, they still missed the mark by about $39 million…which puts them at yet another loss when it comes to the janky start of a Microsoft Windows tablet.

Sadder yet is that many analysts believe that the large sales numbers came from Microsoft selling their older versions of the tablet during the holiday season at a cost well below what it took to assemble them.

I fear that the MS tablet arrived in the world of portable computing a little too late as the market has already been saturated with both Android and iOS devices of varying power. This rings true with many other markets they’ve tried to muscle their way in. Does anyone remember their Zune?

I guess the true test will be how they do in this month through the end of March. Only time will tell.

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