Despite am increased sales of Microsoft Surface last quarter, Microsoft loses millions on Surface.
In a rapport from Microsoft filed last week, it appears that Microsoft has lost $39 million on Surface during the last year’s fourth quarter.
In the published rapport its says that the sales of Surface has more than doubled compared with the previous quarter.
During the last quarter the sales have generated s $893 million. But the cost for the sales were $932 million, 39 million more than income.
Microsoft has not specified exactly what the costs are for the develoing, but according to a previous rapport, filed in October, it appears that the tablet device even then cost more to sell than it then the incomme from it.
The most likely reason why the Land costs more than it brings in are low margins, coupled with a large marketing budget over last year.
Analyst Rajani Singh at IDC say, when Microsoft invest more on hardware, the profit margins will decrease. And this will continue as Microsoft new strategy is to start to put more effort in hardware instead of software.