Microsoft Surface sales only net Microsoft $853 million

The Surface lineup of Windows tablets are not selling as well as Microsoft hoped. How bad are they doing? Really bad, according to analysis of Microsoft’s annual form 10-K  by Todd Bishop of Geekwire.

According to the document, filed with the Securities and Exchange Commission, Microsoft has recorded Surface tablet revenue of $853 million between October 2012 and June 2013, which is the end of Microsoft’s fiscal year. Some number crunching by Geekwire suggests Microsoft sold only 1.7 million Surface tablet units in this eight month period. The amount of money Microsoft made from these sales is eclipsed by the $900 million charge the company recently took for unsold Surface tablet inventory.

To sell through this standing inventory, Microsoft chopped $150 off the price of the Surface RT tablet lineup. The base model now checks in at $349 and is apparently attracting some interest at this price. According to ZDNet, the Surface RT tablets sold out at Walmart following this price drop.

[Via Geekwire and SEC]

  • Gregory C Newman

    I think the “Surface Pro” outsold the Windows Rt tablet. this a good product and most users say once you get a surface pro you do not want to go back to another tablet.
    The windows Rt name has to be changed to lets say MS Tab OS etc. and made cheaper to buy because that is one of the reasons it did not sell well. The Windows Rt OS should be used on a tablet that is preloaded with educational software like the Encyclopedia Britannica and also tied to E-books, E- magazines, College text books plus other educational books to be an e-reader/educational/Entertainment Tablet like the kindle fire. this kind of does not need a full desktop operating system like full
    Windows 8 or Windows 8 pro is. People who want a Windows 8 or 8.1 tablets must realize that to run Windows 8 or 8.1 properly a Desktop/Laptop/Server must use powerful Intel /AMD x86 rated CPu’s and their associated chipsets which are not cheap therefor People must understand that even a good windows 8- 7 or 8 inch small Tablet is going to cost much more than an arms CPU Nexes7 or kindle fire tablet. this a fact of life due the complexity of the Windows 8.1 desktop/Laptop/server OS. if you doubt me how much will a good not CHEAP Desktop/Ultrboook/server cost you?

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