If you are following Microsoft for the past few years, you might not be surprised to hear that Microsoft continues to lose money on its Surface tablets. ComputerWorld spoke with an analyst and concluded that Microsoft could have lost over $1.7 billion since its launch. In the last quarter, Surface business posted a revenue of $409 million and the cost of revenue was at $772 million. So, Microsoft lost about $363 million and they even mentioned in the financial reports that current year cost of revenue included Surface inventory adjustments resulting from our transition to newer generation devices and a decision to not ship a new form factor.” In FY2014, Microsoft lost about $676 million and in FY2013, Microsoft lost about $1.049 billion (including $900 million write-off). But does it matter to Microsoft? ComputerWorld and their analyst claims that Microsoft may stop investing in Surface if this loss continues for ...

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Microsoft reported its latest financial quarter results last week and it was better than what many analysts expected. As Microsoft is transforming into a Devices and Services unit, the results of the newly formed Devices unit is an important one. As per the recent SEC filing by Microsoft, Microsoft is still losing money on every Surface device sold. The sales of the tablet has not hit the volume to make it profitable. For the quarter ended on March 31st, Microsoft lost about $45 million in Surface sales and about $300 million for the nine months ended March 31, 2014. Three months ended March 31, 2014 compared with three months ended March 31, 2013: Surface revenue was $494 million for the three months ended March 31, 2014. Surface revenue increased due to a higher number of units sold. Surface cost of revenue was $539 million for the three months ended March ...

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