In two years Microsoft could have lost 1,725 million dollars with Surface
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Two years have passed since the introduction of the Surface, and in that time Microsoft doesn't seem to have found a way to monetize its range of tabletsAlthough the strategy of those from Redmond seems more aimed at opening the market than at obtaining direct returns from the sale of the same, their losses are beginning to be considerable for the company.
The North American magazine Computerworld has tracked the official documentation that Microsoft has to submit periodically to the North American authorities to estimate at 1.$725 million in losses caused by Surface tablets in their two years of life. More than 1,000 of those millions correspond to the fiscal year of 2013, assuming the rest correspond to the fiscal year 2014 that has just ended.
Surface RT and Surface Mini drag down results
In the last report presented on July 22, Microsoft reported revenue of $409 million in the quarter ending June 30. The problem is that the company did not disclose the associated expenses, which makes it impossible to know for sure the amount gained or lost during the period. Computerworld has pulled from another report and recovered previous data to estimate that figure at $772 million, which would leave a loss of $363 million.
The calculation is similar to that estimated by another analyst cited by the publication, who estimates losses of $324 million, and includes expenses related to the decision paralyze the release of the Surface MiniAlthough it was never presented, Microsoft would have already committed production costs for its small tablet and that would have been reflected in the final results of the entire range.
Similar situation was experienced last year with the inventory adjustment of Surface RT that the company had to carry out. At that time the figure was made public and amounted to 900 million dollars, making the tablet with Windows RT the main responsible for the losses.
Lower losses compared to last year
Adding all the figures presented by Microsoft and Computerworld's estimates, the manufacture and distribution of Surface tablets during the fiscal year 2014 would have had costs of 2,872 million dollars, and their sales would have generated revenues of 2,192 million. The result in the twelve months from July 1, 2013 to June 30, 2014 is loss of $676 million
The numbers are, yes, better than those of the previous year. In 2013 Surface expenses would have reached $1.902 million, including $900 million from the Surface RT inventory restructuring. The income for his part would have remained at 853 million dollars. The result for the last fiscal year: 1,049 million dollars in losses
Adding its two years on the market, and accepting Computerworld's latest calculations as good, Surface would have resulted in losses of 1,725 million for Microsoft so farThe figure is high and makes some wonder if the range of tablets will fit into Satya Nadella's future plans for the company.
Via | The Verge > Computerworld
