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

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

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28 Comments

1. Johnnokia

Posts: 1158; Member since: May 27, 2012

In one sentence .. THANK YOU NOKIA.. Windows phone is dead without Nokia.

2. icyrock1

Posts: 307; Member since: Mar 25, 2013

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

3. Johnnokia

Posts: 1158; Member since: May 27, 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 ?!!.

5. icyrock1

Posts: 307; Member since: Mar 25, 2013

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

17. apple4never

Posts: 1064; Member since: May 08, 2013

lol true, profit margin ?

18. AnTuTu

Posts: 1580; Member since: Oct 14, 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.

24. Os_Money

Posts: 20; Member since: Jul 01, 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.

4. icyrock1

Posts: 307; Member since: Mar 25, 2013

Nice to see they got an increase from Windows Phone.

6. PapaSmurf

Posts: 10457; Member since: May 14, 2012

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

7. MichaelHeller

Posts: 2734; Member since: May 26, 2011

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

11. PapaSmurf

Posts: 10457; Member since: May 14, 2012

Gotcha.

8. aco96

Posts: 244; Member since: Oct 12, 2012

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

10. icyrock1

Posts: 307; Member since: Mar 25, 2013

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

14. TROLL

Posts: 4851; Member since: Apr 13, 2012

What apps.... It has hardly any apps and games ®©™

9. Credo

Posts: 749; Member since: Apr 19, 2012

Windows is the best for my needs ! Best regards!

12. TROLL

Posts: 4851; Member since: Apr 13, 2012

Greetz®©™ Credo you have for got to say Greetzz™®©

15. Credo

Posts: 749; Member since: Apr 19, 2012

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

13. Credo

Posts: 749; Member since: Apr 19, 2012

Greetzz* xd Best regards!

16. TROLL

Posts: 4851; Member since: Apr 13, 2012

Cool™®© How is you? Hows the week been going TROLL™

19. fanboy1974

Posts: 1345; Member since: Nov 12, 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.

20. daniel_bargs

Posts: 325; Member since: Nov 27, 2010

Windows 8 RT is a joke!

21. KFear

Posts: 170; Member since: Feb 06, 2012

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

22. skyline88

Posts: 696; Member since: Jul 15, 2013

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

23. UdhaiyaPrasanth

Posts: 76; Member since: Sep 05, 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.

25. OnTheOtherHand

Posts: 7; Member since: Jun 28, 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 . . . .

27. DigitalJedi_X2

Posts: 346; Member since: Jan 30, 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.

26. snowgator

Posts: 3614; Member since: Jan 19, 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?

28. itsdeepak4u2000

Posts: 3718; Member since: Nov 03, 2012

MS, say thanks to Nokia Lumias.

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