There are just but a few Microsoft divisions that can be termed as financial black holes for the company, but not many imagined the Surface business would still be in that column two years on.
Redmond so very briefly touched upon Surface performance in its last financial earnings call, but the fact remains that the product is still not something that is successful for the company — although overall sales have been on the rise.
The total revenue of the Surface division came in at $494 million for the quarter ending March 31. However, since total investments (building and marketing) in these products were to the tune of $539, Microsoft lost around $45 million in this business.
However, Satya Nadella, the new Microsoft CEO made it clear at BUILD 2014 that the company would continue to invest in the tablet lineup, with focus on creating new models.
Now admittedly, the January to March period is not the brightest in terms of sales, at least compared to the previous two quarters, another important point to note here is that Redmond is losing less money on Surface tablets, each quarter. Sings of improvements? You bet!
Maybe this is something that can be further improved upon with the arrival of the Surface Mini?