Microsoft releases Misleading report on Surface 2 Earnings and Sales

Tech News

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After Microsoft proudly announced that it sold 3.9 million Xbox Ones in just five weeks, it was puzzling why they refused to release the number of Surface tablets units (Generation 1 & 2) that has been sold so far, only mentioning that the ““Surface [generated a] revenue of $893 million,” before telling us this is twice the amount taken during the previous three month period ($400 million). That’s it. It didn’t give us any firm numbers to examine or trumpet. The Surface 2 and Surface Pro 2 went on sale in October 2013, and the original pair were heavily discounted after failing to capture much attention.

Worse, Microsoft reported that they spent $932 million to produce that revenue. Bringing the total Surface 2 profit to a net loss of $39 million!

Many analysts are calculating that the actual number of Surface units sold are between 1.4 million and 1.9 million units. However, these numbers include the generation 1 Surface RT’s that were heavily discounted during Black Friday as retailers were desperate to unload these units after the generation 2’s were released in October.

According to IDC, Apple currently owns the tablet market share at 33.8%, up from 29.7%. Samsung is second-place with an 18.8% share worldwide, down slightly from 18.9% the previous quarter. Honorable mentions are Amazon (7.6%), ASUS (5.1%), Lenovo (4.4%), and Microsoft (3.4%).

Source: http://www.digitaltrends.com/mobile/microsoft-still-losing-money-on-surface-tabletshttp://www.huffingtonpost.com/2014/01/24/microsoft-surface-losing-millions_n_4656199.html

Kue has a Masters in Business Administrations (MBA) from California State University, Fresno. He works as the Director of Education and Outreach for the California Department of Business Oversight in addition to being a contributing writer for news, business, and international blogs. He has also written, directed, and produced an award-winning film as well as authored several books on business, philosophy, and Asian folk lore.