Microsoft’s Surface tablets were initially seen as an iPad competitor, and when the Surface Pro 3 launched, some even thought that it could prove to be a MacBook competitor as well. However it seems that despite Microsoft’s best efforts, the are apparently not making money from the sales of their Surface tablets.
This is according to Computerworld who recently noticed in an 8-K statement filed by Microsoft with the Securities and Exchange Commission that Microsoft had reportedly lost a whopping $1.7 billion on its Surface tablets so far. Previously we had heard how Microsoft had to write off $900 million in unsold Surface inventory, so with a loss of $1.7 billion, it seems that Microsoft might have incurred more loss in the process.
Now this isn’t the first time that we have heard how Microsoft has been losing money from its Surface tablets. However before the doom and gloom predictions start coming in, it should be pointed out that Microsoft makes far more money than it loses. The Redmond company’s operating income last quarter was at $6.48 billion, meaning that they have some spare change they can afford to lose.
Granted they probably want to plug the leak as soon as possible, but it isn’t as bad as it seems. We’re not sure what Microsoft can do to make their Surface tablets more successful and profitable, but hopefully they’ll figure out something soon. In the meantime what do you guys think Microsoft could do to make the Surface tablets more appealing than an iPad or a MacBook?