Surface RT Results In A $900 Million Loss For Microsoft

Since launching its first ever tablet device in history late last year, Microsoft has always maintained that sales of the Surface RT were coming along according to plan. Analysts, however, held a different view.

Various analysts and market watchers claimed that the device had failed to excite for a number of reasons — lackluster processing prowess, pricing, availability or the fact that Windows RT did not include support for traditional desktop applications.

Nevertheless, Redmond finally shared some specifics of how the Surface RT has performed up until now in its most recent quarterly financial results (Q2 2013).

And the technology titan announced a $900 million charge for unsold Surface units — clearly showing that Microsoft had a much higher level of expectations for its ARM powered tablet.

The company noted in its press release that:

“For Microsoft’s fiscal year 2013, the company’s revenue, operating income, and diluted earnings per share were $77.85 billion, $26.76 billion, and $2.58 per share. These financial results include a $900 million charge, or a $0.07 per share impact, related to Surface RT inventory adjustments.”

Microsoft already announced a $150 price cut for the Surface RT last week, as it tries to clear out inventories ahead of the looming arrival of its second generation line up of tablets. Which route does the Windows on ARM adventure take will be evident in the next couple of months.

  • sabre

    How many other companies dare to launch products that have not been thoroughly tested and don’t work properly? Sadly, more companies and industries are doing the same. It used to be that things were built to last for decades. Now they are built to be replaced within just a few years.