SEC filing reveals Microsoft loses money on each Microsoft Surface tablet sold
For the three months ended March 31st, Microsoft lost $45 million on $494 million in Surface sales. For the nine month period ending in March, the red ink totaled $300 million on revenue of $1.8 billion. The cost of generating the Surface sales for each period was $539 million and $2.1 billion respectively.
Microsoft's game plan is a lot different than Amazon's plan. The latter loses money on each Kindle Fire it rings up by design, and makes it back and more by selling apps, content and cloud based storage. Speculation has the crew in Redmond working on a Microsoft Surface mini, with the additional sales generated by the product, possibly enough to put the Surface in the black after a year and a half of such sales.
source: MicrosoftNews via WMPoweruser
4. joey_sfb (Posts: 3508; Member since: 29 Mar 2012)
They had one with surface 1 selling at 30% of the original selling price of 499.
But even at less than 200 I still don't think I will benefit much from the purchase. RT app collection was about 200++ without support of major video codecs.
5. nlbates66 (Posts: 316; Member since: 15 Aug 2012)
VLC player beta is in the windows store now btw :)
7. Mrmark (Posts: 171; Member since: 26 Jan 2013)
Exactly ...$99 for Surface 2 is a fire sell 150 for 64gb
12. sgodsell (Posts: 1540; Member since: 16 Mar 2013)
Microsoft should just cut their losses and kill off the surface and surface 2 that are based on the Arm processors.
15. Crispin_Gatieza (Posts: 544; Member since: 23 Jan 2014)
Why worry about apps when you have a full-featured desktop browser? There are many apps on Android, WP, BB, etc. that are nothing more than shortcuts to a mobile browser URL. At least on RT 8.1 you have IE11 and all its features.
17. joey_sfb (Posts: 3508; Member since: 29 Mar 2012)
Web services and apps are very different in nature. I will apps to book cab, find out when the next available train. Book a show while i am on a train.
Web services is for my internet banking, general surfing at home.
Two mature mobile OS, iOS and Android do both readily. Why would anyone bother with a compromise with Windows Phone and RT.
A full fledged windows is a different story hopefully Samsung will come out with a phone enabled mini tablet running full fledged windows.
18. tigermcm (Posts: 778; Member since: 02 Sep 2009)
they def will not only because they are focused on their pro tabs
2. hung2900 (Posts: 824; Member since: 02 Mar 2012)
It's clear to see that the purpose of Surface is to promote the Window-touch platform (or so-called Modern UI) with more and more apps comming. It's a loss currently, but this strategy ensures the future of Windows, because with the current dominant of the OS Modern UI apps will be more and more popular and adapted by customers.
3. vincelongman (Posts: 1774; Member since: 10 Feb 2013)
I think MS made a loss on the HP hybrid I got from the MS Store
It has i5, 4GB RAM, 256GB SSD, 10 hours battery (only negatives is that its fan-cooled [because i5 CPU] and is only 768p)
I got it for $450, down from $900 regular price, not sure why it was 50%, it was also just released
8. express77 (unregistered)
If surface tablets were using intel x86 mobile processors, would they have been able to run .exe programs. I have heard somewhere ARM don't support exe files but can intel x86 mobile processors?
10. zoransoce (Posts: 4; Member since: 01 Feb 2013)
thay can run .exe files. and you can hook up your controller and play skyrim!!!:D
13. sgodsell (Posts: 1540; Member since: 16 Mar 2013)
Windows RT cannot run any legacy apps or programs written for x86.
9. jroc74 (Posts: 5192; Member since: 30 Dec 2010)
Lots of companies make hardware at a loss. Thats why ecosystems is important....I think the PS4 is one of the few consoles that Sony is seeing less loss from than previous years.
Nintendo is the king...when their consoles are selling well.
11. dorian827 (Posts: 131; Member since: 28 Jul 2012)
GOOD, to pricey for the most lousy specs and features.
16. 7thspaceman (Posts: 1205; Member since: 14 Feb 2011)
Microsoft is new to the Game of designing and finding the cheapest way to make a to make a PC/Tablet. Surface Pro Tablets Use Intel i5 CPU'S and they do not come cheap folks but they are absolutely needed to run a good Windows 8/ 8.1 tablet so do not be stupid enough to think of buying one for less than 400 to 450 dollars. if you want a do every thing Windows 8/ 8.1 tablet you need an Intel i7 CPU in it and the I7 CPU itself will cost more than an Android tablet. Some people say microsoft should stop making ARMS CPU tablets like the Nokia 2520 and the Surface 2 RT OS Tablets that would be a Mistake because in he Mobile world of tablets and smart phones the ARMS CPU is what is used not an expensive Intel i5 or i7 CPU. Microsoft is between a rock and a hard place People want to run x86 legacy programs on a tablet but do not want to pay the high cost for them and some People put down the cheaper more affordable Nokia 2520 and the Surface 2 Rt because they do not run x86 legacy programs. if the Nokia 2520 and the MS intel surface 2 OS tablets are given enough apps they would rival the Apple Ipads and the Android tablet. WOW microsoft sure has interesting Problems in the tablet world.
19. SemperFiV12 (Posts: 878; Member since: 09 Nov 2010)
Yall can argue all you want, but my Surface served me well... until I used it more than I thought I would and needed to get a 64gb one.
Then I sold my Surface. Got a Surface 2.
Have been even happier. And the friend I sold it to, happy as well. IT GETS WORK DONE. Some people prefer other tablets - whatever floats your boat sug.
But there are MANY that use and enjoy the Surface, it is a great product. It is NOT PERFECT. But for some, it gets the JOB DONE... WELL.