More bad news for Microsoft this week. The losses are huge, in the 2014 fiscal year Microsoft reported losses of $1.7 billion which is a lot of money to lose but Microsoft being themselves they’ve probably made that back already. Microsoft also announced that its Surface revenue was $409 million for the quarter ending June 30, not as good as they’d hoped for but $409 million is still $409 million.
Microsoft failed to mention a cost of production. They did however release data which can be used by analysts and they can come up with a rough estimate of the cost of production. Computerworld figures that Microsoft’s Surface costs for the quarter that ended in June were $772 million. That means a loss of $363 million in the quarter for Surface. Some of the money in the cost of revenue calculation was from a write-off to cover the cost of designing and producing an unspecified number of Surface Mini tablets. Microsoft reportedly produced a Surface mini and decided at the last minute to not release the tablet. Perhaps that was a wise idea, seeing how nobody is buying a Surface, a mini version would be completely pointless.
Thanks to Tweaktown for supplying us with this information.
Image courtesy of Tweaktown.