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Surface damage mounts at Microsoft as red ink reaches $1.7

  1. #1


    Bay Area
    Posts : 21,837
    Windows 7 Home Premium x64

    Surface damage mounts at Microsoft as red ink reaches $1.7


    Microsoft continued to lose money on its Surface tablets throughout its just-concluded 2014 fiscal year, adding hundreds of millions of dollars in red ink and boosting total losses to $1.7 billion since the device's 2012 launch.

    According to the 8-K statement filed with the U.S. Securities and Exchange Commission (SEC) on July 22, the Surface posted revenue of $409 million for the quarter that ended June 30. But unlike the two quarters prior, Microsoft did not reveal the cost of revenue associated with the Surface for the period.
    Source

    A Guy

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  2. #2


    Posts : 902
    Win8.1 Pro, Desktop Mode


    Even tho I am not in the least surprised, I do kinda feel for them.
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  3. #3


    United States
    Posts : 3,093
    Windows 8.1 Pro 64-bit


    Even the big guys make mistakes, Apple has had its share. The trick is knowing how to recover quickly.
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  4. #4


    Posts : 3
    win 8.1


    Self-oem hurts not only relation with oem vendors but also MS itself.
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  5. #5


    Posts : 5,707
    Windows 8.1 Pro


    This hit wasn't because the Surface's aren't selling, it's because they took a HUGE hit on not releasing the Surface Mini that was purported to be released with the SP3. Why they thought an 8 inch Surface with N-Trig technology on Windows RT wouldn't sell it beyond my conception. It'd be less expensive and since it's so small, you'd be living in the modern UI through and through, hence Windows RT. It's a perfect device ideal for note taking and on the go. I would have switched out my Surface RT to a Mini if they announced it.

    Obviously of course, I can see why they didn't because for some odd reason Office isn't in all WinRT yet. They need to get with it because the lack of touch first Office is what probably caused that huge hit for the whole company. Now they probably have a ton of these Minis lying around and by the time they do release Office as a WinRT suite, they might have to do a redesign of the Surface Mini based on market research and simply because of out of date firmware, etc.
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  6. #6


    Hafnarfjörður IS
    Posts : 4,376
    Linux Centos 7, W8.1, W7, W2K3 Server W10


    Hi there

    The Markets as I've posted elsewhere don't have any problems with Ms -- an 8 inch tablet is TOO small to be of any significant value -- especially with 5 inch smart phones. The SP3 is actually a great device for mobile people (OK expensive - but you always pay more for being an early adopter). Convertibles will be great for a lot of people - especially those that go through airports --lugging an older, heavier, bulkier, (of course I know cheaper) laptop around with a typical 16 inch screen and usually horrible 1366 X 768 video resolution --forget it. A 12 inch is just large enough to be moderately USEFUL (even on that size screen the far improved resolution makes a HUGE difference - especially if you increase the zoom on say a word document - no jagged fonts !!!) and the SP3 with a docking station can do anything a laptop can. The video is great to drive even those huge 60 inch monitors !!.

    Ms makes a lot of money from Office products, corporate licences, and services and is quite involved in Robotics too. I'd be more worried about the long term prospects of "The Fruit company" -- which is probably why they tied up with IBM to get some crumbs from the corporate table --otherwise apart from a new iPhone - selling in a Saturated market already - what have they got to offer.

    The Windows phone - if they could ever make some decent Handsets --those old square Nokia things look like something even my Grandma wouldn't dream of using !!-- is actually a great OS for a phone (The new one - not the old W7 phone). This might make some decent inroads into "Blackberry Territory" - corporates - and a few consumers too. Go top end --forget about the low end stuff in this market -that end is saturated already and who needs yet another Android phone - why should I swap a Samsung or an IPhone for a HIDEOUS looking square brick even if the Windows OS IS better !!.

    Cheers
    jimbo
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  7. #7


    Somewhere in USA
    Posts : 233
    Windows 8.1 Pro


    MS is making a great point here. I appreciate the need to build and offer such a device because no one else has. It had to be done. Convertible clamshells had already been done by lots of oems. Often sub par with mediocre specs and just absurdly heavy and poor quality.

    It's an investment that will drive adoption for those that maybe can't afford a Surface to something maybe lower cost like the T100 who only need the basics.

    When their vision arrives with Threshold, touch office, Windows RT/Phone merger, the choice will be more clear. There is nothing else that will do a better job of allowing you 1 ecosystem to work and play. I expect more Windows Phone devices in the coming months to launch alongside this transition and showcase better hardware. I agree, their phones aren't the best right now as i'm holding onto this 920 until a decent device arrives thinner and bigger, but not as big as a 1520. With more phone oems aboard, there will be a bit more to choose from hopefully like the HTC One M8 with Windows Phone set to arrive this week.
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  8. #8


    Posts : 5,707
    Windows 8.1 Pro


    Quote Originally Posted by jimbo45 View Post
    Hi there

    The Markets as I've posted elsewhere don't have any problems with Ms -- an 8 inch tablet is TOO small to be of any significant value -- especially with 5 inch smart phones. The SP3 is actually a great device for mobile people (OK expensive - but you always pay more for being an early adopter). Convertibles will be great for a lot of people - especially those that go through airports --lugging an older, heavier, bulkier, (of course I know cheaper) laptop around with a typical 16 inch screen and usually horrible 1366 X 768 video resolution --forget it. A 12 inch is just large enough to be moderately USEFUL (even on that size screen the far improved resolution makes a HUGE difference - especially if you increase the zoom on say a word document - no jagged fonts !!!) and the SP3 with a docking station can do anything a laptop can. The video is great to drive even those huge 60 inch monitors !!.

    Ms makes a lot of money from Office products, corporate licences, and services and is quite involved in Robotics too. I'd be more worried about the long term prospects of "The Fruit company" -- which is probably why they tied up with IBM to get some crumbs from the corporate table --otherwise apart from a new iPhone - selling in a Saturated market already - what have they got to offer.

    The Windows phone - if they could ever make some decent Handsets --those old square Nokia things look like something even my Grandma wouldn't dream of using !!-- is actually a great OS for a phone (The new one - not the old W7 phone). This might make some decent inroads into "Blackberry Territory" - corporates - and a few consumers too. Go top end --forget about the low end stuff in this market -that end is saturated already and who needs yet another Android phone - why should I swap a Samsung or an IPhone for a HIDEOUS looking square brick even if the Windows OS IS better !!.

    Cheers
    jimbo
    I don't really want to several hundred dollars for a tablet when I won't even put it to too much use. I have a Surface RT and even still, it's my third most used device past my Windows Phone. If it were like the SP3 with its N-Trig screen, it'd be used more. No stylus can really even get CLOSE to Wacom or N-Trig technology. Let alone the fact that I HATE my handwriting using a capacitive stylus versus the Surface Pro tablets. My handwriting is very elegant and those tablets keep that elegance. That's that, let alone the other fact that personally, I don't honestly need an x86 tablet. Maybe an Atom at best, but it's ideal to keep in the modern UI than the Desktop and that would allow the whole breath of drivers and devices to be used and installed.

    A Surface Mini would be great, a Surface 3 with RT would also be fantastic. Problem is how the software was executed, the Desktop LITERALLY does not get used only for Office, File Explorer, regedit, and PowerShell. That's all I ever look at the Desktop for, other than of course the Desktop backgrounds. If only Windows 8 RT was kept as a true and through modern UI OS only and had touch first Office (or at least the suite roughly made into WinRT) and a proper File Explorer, it would have made sense and would have distinguished itself from x86 Windows.

    I'd rather have a Nokia Lumia than a Samsung handset as those are just flat giant iphones with no class to them and loaded with gimmicks.

    Blackberry territory doesn't exist, it's like only 55 people that genuinely use it. Basically, Blackberry's done for and will be replaced by iphones or maybe Windows Phone or maybe android. Nokia did first go top end, down. That didn't work. The Nokia Lumia 520, the Windows Phone you can buy here in the States for literally under 80 dollars, holds the title for the TOP selling WINDOWS device since 2012. Just think about that, there isn't a Windows PC or other Windows Phone that has sold as much as the 520. Why do you suppose Microsoft and Microkia are attacking aggressively on the correct end of things at the bottom with both Windows 8.1 and Windows Phone 8.1? That's where android resides and has no competition, has no standards of what level of quality they're built at; and if you can get a real inexpensive smartphone in more hands that's better than having a high end smartphone in the hands of a few. That's how you properly build a marketshare, you HAVE to start from the ground up and not the top down. For example, the US marketshare would benefit greatly with lower end Windows Phones being more available as people are slowly realizing they're being highway robbed with contracts. Overseas markets don't do contracts as much, as why android is heavily used and Windows Phone is becoming more and more used over the iphone. That's also, by the way, how Windows originally came to be used more over the mac back in the early days. A Windows PC cost less and did more than a mac, and the marketshare ensued.
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  9. #9


    Quote Originally Posted by Coke Robot View Post
    I'd rather have a Nokia Lumia than a Samsung handset as those are just flat giant iphones with no class to them and loaded with gimmicks.
    Lot's of people at work upgraded from Samsung S3's to S4's and S5's. Everybody that I know with a Samsung handset is pretty damn happy, and that includes my wife and myself. I have an S3, and I'm eligible for an upgrade at work, but I like my S3 so much and even thought it's over 2 years old, I have no desire to switch.
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  10. #10


    Posts : 5,707
    Windows 8.1 Pro


    Quote Originally Posted by pparks1 View Post
    Quote Originally Posted by Coke Robot View Post
    I'd rather have a Nokia Lumia than a Samsung handset as those are just flat giant iphones with no class to them and loaded with gimmicks.
    Lot's of people at work upgraded from Samsung S3's to S4's and S5's. Everybody that I know with a Samsung handset is pretty damn happy, and that includes my wife and myself. I have an S3, and I'm eligible for an upgrade at work, but I like my S3 so much and even thought it's over 2 years old, I have no desire to switch.
    I know several people who switched to a Nokia Lumia 928, 520, and 920 and love the phones. I myself have had mine for almost two years this December and if it weren't for the 1020 and its possible successor soon, I might not even upgrade either.
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Surface damage mounts at Microsoft as red ink reaches $1.7
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