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Microsoft announces quarterly earnings: Surface RT loses $900M, Windows Phone gains $222M

Posted: , by Michael H.

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Microsoft announces quarterly earnings: Surface RT loses $900M, Windows Phone gains $222M
Microsoft has announced its numbers for fiscal Q4 2013, and the numbers are not looking all that great. To paint a broad stroke as to why the numbers aren't looking good, it would be because the real growth segment is mobile, and Microsoft only holds a small piece of that pie. Microsoft announced a total of $4.97 billion in quarterly earnings, but its trouble in mobile was highlighted by the Surface RT losing $900 million which was shown in a write-off for unsold inventory.

Microsoft is seeing improvements as revenues were $19.90 billion, which is a 10% increase year-on-year from fiscal Q4 2012. But, Microsoft's net income was effectively wiped out because of a $6.2 billion write-off related to its 2007 acquisition of aQuantive. Microsoft's Windows division posted revenue of $4.4 billion, a 6% increase year-on-year. The Windows numbers got a boost from Microsoft's Upgrade offer, but took a hit because of the Surface RT failure. 

Things are precarious for Microsoft because it is in the middle of a massive pivot from PC to mobile, and has a major corporate restructuring plan going into effect as well. But, Windows Phone helped to post one of the bright spots for Microsoft. The Entertainment and Devices Division (EDD) saw its revenue increase $134 million, or 8%, and Microsoft says this is "primarily due to higher Windows Phone revenue". Patent licensing revenue and sales of Windows Phone licenses increased $222 million for the quarter as well

source: Microsoft

28 Comments
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posted on 18 Jul 2013, 17:54 27

1. Johnnokia (Posts: 559; Member since: 27 May 2012)


In one sentence .. THANK YOU NOKIA..

Windows phone is dead without Nokia.

posted on 18 Jul 2013, 17:56 5

2. icyrock1 (Posts: 306; Member since: 25 Mar 2013)


It's Windows RT that lost 900 Million, not Windows Phone. To very different things.

posted on 18 Jul 2013, 17:58 12

3. Johnnokia (Posts: 559; Member since: 27 May 2012)


"Microsoft announces quarterly earnings: Surface RT loses $900M, Windows Phone gains $222M"

How could WP gains without Nokia, which has a market share of more than 80%, and sold 7.4 million Lumia last quarter ?!!.

posted on 18 Jul 2013, 17:59

5. icyrock1 (Posts: 306; Member since: 25 Mar 2013)


Ah, I thought you were talking about the total lose/profit of the windows platform.

posted on 18 Jul 2013, 20:37

17. apple4never (Posts: 974; Member since: 08 May 2013)


lol true, profit margin ?

posted on 18 Jul 2013, 20:52

18. AnTuTu (Posts: 963; Member since: 14 Oct 2012)


There wasn't any market for Surface RT since it has so many restrictions.

I hope MS will launch Surface Pro with a different form factor which will dominate the tablet market later this year.

posted on 19 Jul 2013, 08:02

24. Os_Money (Posts: 19; Member since: 01 Jul 2013)


not to beat a dead horse, but they shouldn't have chose to name it windows rt, it just confused the general public.

Microsoft doesn't seem to be naming things very clearly/well lately.

posted on 18 Jul 2013, 17:59 7

4. icyrock1 (Posts: 306; Member since: 25 Mar 2013)


Nice to see they got an increase from Windows Phone.

posted on 18 Jul 2013, 18:03

6. PapaSmurf (Posts: 8920; Member since: 14 May 2012)


Typo in the first sentence Michael. Q4 of 2013 hasn't passed yet.

posted on 18 Jul 2013, 18:25 9

7. MichaelHeller (Posts: 2691; Member since: 26 May 2011)


Microsoft goes on fiscal quarters, which end in June. So, for MS it's Q4, but for Google and others, it's Q2.

posted on 18 Jul 2013, 20:12

11. PapaSmurf (Posts: 8920; Member since: 14 May 2012)


Gotcha.

posted on 18 Jul 2013, 18:53 8

8. aco96 (Posts: 212; Member since: 12 Oct 2012)


I've just orderd Samsung Ativ S. I love Windows Phone, my brother has Lumia 710 - amazing phone, and very affordable :D

posted on 18 Jul 2013, 19:26 7

10. icyrock1 (Posts: 306; Member since: 25 Mar 2013)


Should have went Lumia my friend. Your gonna miss all of the exclusive lumia apps. :P

posted on 18 Jul 2013, 20:27 6

14. TROLL (banned) (Posts: 4851; Member since: 13 Apr 2012)


What apps....
It has hardly any apps and games

®©™

posted on 18 Jul 2013, 19:18 9

9. Credo (Posts: 695; Member since: 19 Apr 2012)


Windows is the best for my needs !

Best regards!

posted on 18 Jul 2013, 20:24 2

12. TROLL (banned) (Posts: 4851; Member since: 13 Apr 2012)


Greetz®©™

Credo you have for got to say

Greetzz™®©

posted on 18 Jul 2013, 20:27 5

15. Credo (Posts: 695; Member since: 19 Apr 2012)


I changed to 'Best regards!', sounds better mate...

Best regards!

posted on 18 Jul 2013, 20:26

13. Credo (Posts: 695; Member since: 19 Apr 2012)


Greetzz* xd

Best regards!

posted on 18 Jul 2013, 20:28 1

16. TROLL (banned) (Posts: 4851; Member since: 13 Apr 2012)


Cool™®©

How is you?
Hows the week been going

TROLL™

posted on 18 Jul 2013, 21:07 2

19. fanboy1974 (Posts: 1288; Member since: 12 Nov 2011)


I knew that Windows RT was a failure from day one. Now if they can make a semi-powerful Windows 8 (the real windows 8) tablets at a decent price that is a different story. The current crop of Windows 8 with Atom is not making me pull out the wallet.

posted on 18 Jul 2013, 22:01

20. daniel_bargs (Posts: 325; Member since: 27 Nov 2010)


Windows 8 RT is a joke!

posted on 18 Jul 2013, 22:06

21. KFear (Posts: 137; Member since: 06 Feb 2012)


Please Please Please get rid of Windows 8. Keep the OS for mobile only!!!

posted on 18 Jul 2013, 22:33

22. skyline88 (Posts: 347; Member since: 15 Jul 2013)


RT cost 300 USD and Pro cost roughly a mind-boggling 850 USD in my region, crazy prices.

posted on 19 Jul 2013, 00:03 4

23. UdhaiyaPrasanth (Posts: 72; Member since: 05 Sep 2012)


MS, at least now drop the idea of making a phone for yourself, and let the hardware giants take care of it! And for heaven's sake, make your OS complete.

posted on 19 Jul 2013, 08:43 1

25. OnTheOtherHand (Posts: 7; Member since: 28 Jun 2013)


Everyone is ignoring Microsoft's history. When they developed Word and Excel, he market was completely dominated by WordPerfect and Lotus. They weren't given any chance. Look how that turned out. When they released SQL Server, it was roundly booed as a poor excuse for an enterprise database. Look where they are now. It remain to be seen how everything will turn out, but I wouldn't write them off just yet.

As I've said before, I have an Android phone and a Windows phone. I always see comments from android fans about WPs not having the latest specs - quad core processors, etc. I can tell you if you based your evaluations on PERFORMANCE, specs wouldn't enter the coversation. The WP performance is much, much better than the Andoid phone. Don't call me a fanboy because there are a lot of things I like about Android. But, facts are facts . . . .

posted on 20 Jul 2013, 07:17

27. DigitalJedi_X2 (banned) (Posts: 346; Member since: 30 Jan 2012)


That would depend entirely on what Android and WP devices you have. Which ones do you have, if you don't mind my asking? I have an HTC One, Nexus 4 and Nexus 7 tablet. My brother has several Nokia Lumia phones and a Surface Tablet. And I can tell you that my Android devices are just as fluid and responsive, if not moreso, than his WP devices.

posted on 19 Jul 2013, 10:47

26. snowgator (Posts: 3288; Member since: 19 Jan 2011)


As MS continues to roll in multi-billion dollar profits, it will help to soften the blow of products that go "thud". Windows 8 tablets are going to be the future, but WinRT was supposed to be the low end, inexpensive alternative. No one has bit, yet.

Now, MS, how do you adjust to what the market is telling you?

posted on 22 Jul 2013, 07:55

28. itsdeepak4u2000 (Posts: 2866; Member since: 03 Nov 2012)


MS, say thanks to Nokia Lumias.

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