Surface damage mounts at Microsoft as red ink reaches $1.7B

[A Guy]

Microsoft continued to lose money on its Surface tablets throughout its just-concluded 2014 fiscal year, adding hundreds of millions of dollars in red ink and boosting total losses to $1.7 billion since the device's 2012 launch.

According to the 8-K statement filed with the U.S. Securities and Exchange Commission (SEC) on July 22, the Surface posted revenue of $409 million for the quarter that ended June 30. But unlike the two quarters prior, Microsoft did not reveal the cost of revenue associated with the Surface for the period.

Source

A Guy

 

[Layback Bear]

Very very interesting.

Like a wise Bear once said.
The ruler used by business is Sales and Profit.

It seems like Nadella thinks along those lines to make decisions.
If the consumer doesn't want to buy the product or service make one they do want to buy.

Ballmer method was cram it down their throats and make them buy it because he like it.

 

[jimbo45]

Hi there

I think the Markets have already factored that in -- Ms has a LOT of other places where it earns money.
Here's the Graph of MSFT over the last 3 monthe --I've added a reasonable "Trendline" in Green - and this is at a time due to World situation - Syria, Libya, Israel, Russia/Ukraine etc, Feds reducing "Quantitive Easing" in US (reducing the money they feed in), problems in the EURO ZONE, etc when the Markets are quite volatile.

Apple IMO is in more danger - hence its tie up with IBM to get a foothold in the corporate marketplace. Ms provides a huge amount of business services. Also introducing new products can be a costly business but they'll get it right in the end --at least that's the Market sentiment.

Cheers
jimbo

 

[ThrashZone]

Over priced
Focus was on a narrow market,
I expect reality to set in before the holidays where I believe a 500.00 price might be a better selling point for the basic model I saw with limited memory 64gig I believe ?

 

[Lady Fitzgerald]

Over priced
Focus was on a narrow market,
I expect reality to set in before the holidays where I believe a 500.00 price might be a better selling point for the basic model I saw with limited memory 64gig I believe ?

Even worse, the tablet market is becoming saturated.

 

[jimbo45]

Hi there

I have to agree that the LOW end stuff isn't worth selling if you are going into this market however decent convertibles will suit many more people than you think.

Most Laptops that you see on sale today are really "Sad" antiquated looking models -- often heavy and with 15 - 16 inch screens with poor 1366 X 768 resolution. OK they might be very cheap but they are a PIG to lug around.

The SP3 device is great for travellers even if it IS expensive -- new products always are expensive and early adopters always pay "over the odds". I was an early adopter when the first HOME CD players came out -- in todays money that would be around 2000 USD for an "average" domestic CD player -- today it's JUNK and it went to "The Council Tip" a long time ago.

I think decent convertibles ARE the way to rescue a part of the laptop market -- not for everyone but definitely a Market is there - - Lenovo is also in the game but their current model is a bit "Cack handed" to use.

The older SP2 stuff and yes having the low end SP3 doesn't make much sense to me either --if you are going for a niche market then do it properly.

Of course the whole of Ms was a bit screwed up under the reign of Ballmer. The ship's being steadied now (rather than the shi- is flying out of the fan!!).

As I said the Markets view is that Ms isn't in any danger either now or in the imminent future.

Cheers
jimbo

 

[Layback Bear]

Microsoft isn't going anywhere except in a more reasonable direction.
The man at the helm seem to have his head where it belongs.

 

[ThrashZone]

Seems an adjustment is in order but how Microsoft adjusts it's present device and attempts to make a product for larger block is the new question,
But I agree Microsoft makes more off of Office than anything they've ever created

The reality is people need space in a portable for a boat load of videos and Music pictures.... and 64 gig's isn't going to get that need done,
External drives can easily be lost or broken/ dropped...

 

[jimbo45]

Hi there

Ms stock still "In the Green" today up a bit. The Markets seem re-assured. I wouldn't worry about the early demise of Ms. There's plenty of REAL problems to deal with.

However bear in mind that a decent Blu Ray rip at full 1080p HD can be done to MP4/MKV in about 1.3 GB - still gives Streets ahead better quality than a standard Dual Layer commercial DVD (standard play - around 7 GB usually) so it means you can take about 40 HD quality movies with you or literally HOURS and HOURS of music even compression free as FLAC files. I often store these temporarily on the separate micro SDHC card on a PHONE - and plug that into a USB device and play the movies from there !!! or copy temporarily the movie you need to play.

You don't actually lose external USB HDD's in practice --smaller ex laptop drives or those passport 2 TB one's have more than enough data capacity and fit easily into the carrying case --remember these SP3's are used essentially ON THE ROAD. I agree though internal capacity of just 64GB is too small -- plenty of SSD's available at sensible prices of 120 and 256 GB now.

Cheers
jimbo

 

[andrew129260]

Even worse, the tablet market is becoming saturated.

Becoming? It's beyond saturated.

 

[Layback Bear]

Tablets did so good for few reason in my opinion.
They are a low cost device.
You can communicate with Tinker Bell using the internet and FaceBook.

 

[artfd]

heavy and with 15 - 16 inch screens with poor 1366 X 768 resolution. OK they might be very cheap but they are a PIG to lug around.

In 1983 I was lugging an Osborne 1 to & from work every day. Within a couple of months I bought a 2nd Osborne-1 at its post-bankruptcy pricing, and left it chained to my desk in the office, rather than move it back & forth.

Any laptop weighing less than half an Osborne-1 feels wonderful nowadays, by comparison. I certain can use a little extra exercise anyway. I am still in good shape, if you think "round" is a good shape. I have dropped and lost a fair amount of small lightweight electronic gear and avoid too much elegance.

 

[Berkey]

NFL announcer forgets name, calls Microsoft Surface 'iPad-like' - CNET

Ouch. Looks like microsoft missed it's window to brand its product in time. Happens a lot,like getting a paper handkerchief from a box should be called a tissue, but most call it a kleenex or a adhesive bandage is almost always called a band-aid. It looks like most people anyone who is not a tech person, will refer any tablet as an ipad (ipods get the same treatment for most mp3 players imo)