Forums - Microsoft Discussion - Microsoft Loses $1.7bn Trying to Make Surface Relevant

Should Microsoft Abandon Surface?

Yes
No

Microsoft has lost $1.7 billion trying to make the Surface a hit

 

"Microsoft’s Surface Pro 3 tablet might finally be gaining some traction for Microsoft in the tablet market, but the whole Surface venture has come at an enormous cost. Computerworld notices that Microsoft revealed in an 8-K statement filed with the Securities and Exchange Commission this week that it has lost $1.7 billion on its Surface line of tablets so far, which is nearly double the $900 million write down that Microsoft took last year on unsold Surface inventory. 

What’s actually really remarkable about this is that Microsoft makes such an insane amount of money that it can afford to shrug off its multiple money-losing consumer electronics bombs. Microsoft’s operating income last quarter was $6.48 billion and its earnings per share only narrowly missed Wall Street expectations after posting better-than-expected earnings the quarter before. Unlike companies such as HTC that live and die on device sales, Microsoft can afford to keep lighting money on fire for the foreseeable future until it finally produces a hit."

Source: http://news.yahoo.com/microsoft-lost-1-7-billion-trying-surface-hit-000019595.html

 

What are your thoughts? Is this a money pit for MS? Should they drop Surface and stick to software and services, especially since Nadella wants the company to focus on those more than hardware?



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Worth a try.

I don't think that way, I just type that way.

My first bet.

I'm Not a Square Enix Whore.

Maybe part of the problem with surface was the bad press that Windows 8 got.Scared people off.
Everyone knows all they need to do with windows 9 is release a regular desktop version and a version for tablets.
MS should stay in the tablet business i think.

The Surface is an interesting piece of hardware but windows 8 is a problem. No apps, weird interface. And RT is just useless

 

Gen 8 Hardware Predictions (After 6 years)

PS4 -- 110 million , X1 50 million, Wii U 35 million

Currently playing: Rayman Legends, New Super Luigi U

Current backlog: Batman Arkham City, Metroid Prime Trilogy, Pikmin 3

Next games for purchase: Super Smash Bros Wii U, Project CARS, Guacamelee! STCE, Lego City Undercover, Hyrule Warriors

yearly net income being 22 billion USD they actually need to invest way more



what would stupid imo is if invest even less like apple

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fleischr said:
The Surface is an interesting piece of hardware but windows 8 is a problem. No apps, weird interface. And RT is just useless


windows 8.1 is pretty cool



fleischr said:
The Surface is an interesting piece of hardware but windows 8 is a problem. No apps, weird interface. And RT is just useless


RT is a dead end, in my opinion currently, but Surface also features x86-cpus.



I think it's sad because the thing is an impressive piece of hardware, perhaps just a bit overpriced.
If it happens to get cheaper in the future I perhaps will buy one.

The problem with MS over the last decade or so is that they seem to be so late in joining the party. The pathetic Zune and now Surface are all about MS catching up with devices that had already been dominated by other companies on the market. Windows had phones long before Apple but they handled it badly.

With strong core products these losses are but a drop in the ocean.

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walsufnir said:
I think it's sad because the thing is an impressive piece of hardware, perhaps just a bit overpriced.
If it happens to get cheaper in the future I perhaps will buy one.


the main thing is (IMO) is that is fucks up completely when trying to gain the interest of the mass market. it might be a great device, but it just isnt interesting. and that might be the problem. 



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