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Hopefully Surface has better luck in those markets

Microsoft's homemade tablet line, Surface, has reportedly seen a loss each quarter and each fiscal year since the 2012 launch -- and 2014 is no different.
 
According to Computerworld, Microsoft's Surface saw the largest quarterly loss yet for the April-June period this year at $363 million USD.
 
This is due to Surface's revenue of $409 million USD for the quarter along with Computerworld's calculated $772 million USD for Surface's cost of revenue. 
 
Part of this loss was due to a write-off, which was for designing and producing Surface Mini tablets. Microsoft ended up not even launching the Surface Mini's alongside the Surface Pro 3 because it feared the tablet wouldn't sell. 
 
Total cost of revenue for fiscal year 2014 was $2.872 billion USD, and Surface revenue came in at $2.192 billion USD for the same time period. 
 

The total loss for FY2014 totaled $676 million USD.
 
This is an improvement from FY2013, which had a total loss of $1.049 billion USD. However, Surface has reportedly boosted total losses to $1.7 billion since the device's 2012 launch.
 
Surface has been troubled from the start. It launched in October 2012, and in July 2013, it was reported that Microsoft had taken a $900 million USD charge on the Surface line due to poor sales. 
 
Microsoft tried new tactics for selling the tablet, such as offering $650 in store credit if customers were willing to trade a MacBook Air for a Surface 3. 
 
In April of this year, reports said Microsoft had lost $300 million USD on Surface over the nine months prior. 
 
Despite these issues, Microsoft is pushing forward with its tablet by offering Surface Pro 3 in 25 additional markets starting August 28. These markets include Australia, Austria, Belgium, China, Denmark, Finland, France, Germany, Hong Kong, Ireland, Italy, Korea, Luxembourg, Malaysia, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, Taiwan, Thailand and the United Kingdom. 

Sources: Computerworld, Surface Blog





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