Microsoft Posts Its Worst-Ever Quarterly Surface Loss

CommanderFrank

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Microsoft will be looking long and hard at the next quarter revenue for the ailing Surface after the report that came in for the past quarter showed the worst quarter loss so far in Surface sales history. The total losses incurred by the Surface line for 2013-14 stands at $1.73 Billion.

Continued losses will make it harder and harder for Microsoft to keep the Surface project going, so a good performance in the next quarter or two will be critical to justifying its continued existence.
 

PinchedNerve

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Shame. I really like my SP2 and the docking station I bought. I'm considering buying an SP3 but the price is the only thing stopping me, I just can't afford it ATM.
 

DeathFromBelow

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Wow, you mean there's not a big market for $1000 tablets? Didn't see that coming. :rolleyes:

All that money wasted on Surface and Windows 8... They should have been focusing on Windows Phone OS and low-cost ARM devices rather than trying to turn desktop Windows into iOS.
 

Skripka

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Wow, you mean there's not a big market for $1000 tablets? Didn't see that coming. :rolleyes:

All that money wasted on Surface and Windows 8... They should have been focusing on Windows Phone OS and low-cost ARM devices rather than trying to turn desktop Windows into iOS.

But surely the people dancing with Surface tablets in their commercials will save them! :)
 

jadams

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A full-on PC the size of a tablet will of course be expensive.

Id much rather have the functionality of a tablet in a tablet for a much lower price. My windows 8 tablet has an atom. Keeps me from specifically using it like a desktop PC but has all the functionality of a tablet. Its used for what its meant for and cost $300.
 

Kueller

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No surprise, Surface RT/Vanilla/Non-Pro was gimped from the get-go. Not x86 compatible like the Venue 8 Pro and other atom based tabs, while still costing more.

Surface Pro 1 was a work in progress, SP2 was a nice evolution. SP3 is an outstanding device overall and would be a home run except for the prices $1129/128GB and $1429/256GB? OUCH! Those $130 keyboards are killers. You can buy a stand alone tablet for $130 and equivalently spec'd laptop for $500.

Disclaimer:
I've owned a SP1, SP2 and currently a SP3...
 

Michaelius

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Pro pricing is in line with ultrabooks - but the whole RT line is completly pointless.
 

PornoSatan

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No surprise, Surface RT/Vanilla/Non-Pro was gimped from the get-go. Not x86 compatible like the Venue 8 Pro and other atom based tabs, while still costing more.

Surface Pro 1 was a work in progress, SP2 was a nice evolution. SP3 is an outstanding device overall and would be a home run except for the prices $1129/128GB and $1429/256GB? OUCH! Those $130 keyboards are killers. You can buy a stand alone tablet for $130 and equivalently spec'd laptop for $500.

Disclaimer:
I've owned a SP1, SP2 and currently a SP3...

All I see is Service Pack 1, Service Pack 2, Service Pack 3. :p Damn acronyms these days
 

Koolthulu

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I've played around with the 3 and liked it, but there is just no way I would spend that much money on one. I can buy a touchscreen laptop and a tablet and have money leftover, for what a Surface costs.
 

Taco

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My girlfriend just bought a Surface Pro 3. It's a nice device and she loves it. Problem is it's 1k for a piece of shit processor, no memory and limited disk space. I understand it's not an iPad, but there are still plenty of other x86 alternatives that get you way more bang for the buck.
 

Taco

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For what it's worth, I have a Lenovo Yoga, which I love. You can get an I7, 8GB memory, 256GB drive and a significantly higher resolution screen for $1,100.

Surface alternative? Same specs (except lower res screen) $1,720.

Stupid.
 

Taco

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Pro pricing is in line with ultrabooks

For sake of clarity. Lenovo Yoga, referenced in my previous post, is an "Ultrabook". I don't feel like checking Apple's prices, but maybe Surface Pro is in line with a Mac Book Air? Certainly isn't in line with Windows based alternatives.
 

evilsofa

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In Microsoft's quest to be more like Apple in all ways (have you noticed this yet?), they went way too far on the price.
 

NickJames

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I love the Surface Pro 3 but I feel like it needs 1 more revision before I commit to upgrade. Still using the SP1.
 

Taco

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The 3 was a pretty major revision for the better. If the price doesn't put you off, now is as good a time as any to jump.
 

SparkedFire

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I love my Surface Pro. In fact, i'm writing on it now and it is especially excellent as a college device in class for notes and work. The problem is there is no shortage of people willing to spend loads of money on Apple gear. Everyone laughs at the thought of Microsoft.
 

Skripka

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I love my Surface Pro. In fact, i'm writing on it now and it is especially excellent as a college device in class for notes and work. The problem is there is no shortage of people willing to spend loads of money on Apple gear. Everyone laughs at the thought of Microsoft.

Actually much of it has to do with Apple heavily subsidizing and promoting at kids in college or younger. And it works. Hook em young and keep em.
 

heatlesssun

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No surprise, Surface RT/Vanilla/Non-Pro was gimped from the get-go. Not x86 compatible like the Venue 8 Pro and other atom based tabs, while still costing more.

Agreed, I've never been a fan of Windows RT devices though they can serve a purpose. When modern Office arrives, Windows RT could satisfy a lot of needs, even productive ones, for many without the need for the desktop. Indeed it has been sort of a mystery why Microsoft has pushed touch first versions of Office for the iPad and Android ahead of Windows RT as that could only have helped Surface RT devices.

Surface Pro 1 was a work in progress, SP2 was a nice evolution. SP3 is an outstanding device overall and would be a home run except for the prices $1129/128GB and $1429/256GB? OUCH! Those $130 keyboards are killers. You can buy a stand alone tablet for $130 and equivalently spec'd laptop for $500.

Disclaimer:
I've owned a SP1, SP2 and currently a SP3...

You can't buy a new $500 laptop that has all of the specs of SP3, you're not going to get anything anywhere near the screen and build quality for that price. For what it is as a whole, the SP3 is in line with other devices price wise. It would be nice if there were a mainstream price Surface device, but that's where it would get tricky for Microsoft as such as device would be much more competition for Microsoft's OEMs.

One thing to note, this loss includes the scuttling of the Surface Mini, so that's probably a the big part of this loss and the SP3 hadn't been in market long enough to show up in last quarters results. It will be interesting how this plays out with the acquisition of Nokia's devices. Once everything is ironed out Microsoft should be able to make a few bucks on mobile devices, though I don't see it being a major source of revenue anytime soon, if ever.
 

heatlesssun

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This just isn't remotely true.

Take the weight, size, battery life, screen and build quality, touch and pen interfaces and find me something significantly cheaper. I've been looking and there just isn't anything. That's not to say that there aren't cheaper devices that might be faster or well build or light or have solid touch and pen interfaces but something that's got it all for less than the SP3 doesn't exist. I'm looking at getting the i7/512 GB in the next month or so unless I find something better.
 

Taco

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You can't really do a 1 to 1 feature comparison like that. I already compared the Yoga and it can do things the Surface can't do just like the Surface can do things the Yoga can't do. But they are absolutely the same class/quality of notebook.
 
D

dceremuga

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Everyone keeps forgetting that the SP3 has overheating problems. I'm waiting for the SP4 and lower pricing.
 

Taco

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And again, I have a Yoga and Surface Pro 3 sitting within 20 feet of me as I type this.
 

Kongar

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This is a bit of a rehash from the mobile computing sub-forum - but I bought an i7 SP3 256 GB on release day and returned it. Heat/throttling issues. Long story short, the SP3 is ALMOST there - one more revision and I think Microsoft will have a winner. The SP3 is a fantastic experience for anyone who wants to take notes on the go (students, engineers, business guys), and can perform respectably.

I for one hope they stick with it until they get it right - because I for one would appreciate one device instead of a tablet and a laptop.
 

heatlesssun

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You can't really do a 1 to 1 feature comparison like that.

But isn't comparing features and characteristics between different products normally how consumers make product buying decisions.

I already compared the Yoga and it can do things the Surface can't do just like the Surface can do things the Yoga can't do. But they are absolutely the same class/quality of notebook.

I'm not disputing that the Yoga is a fine notebook and better than the SP3 as a notebook. However the ThinkPad Yoga is more comparable to the SP3 as it has pen support. That's the other device on my short list that I'm thinking about in addition to the SP3. When speced out comparable to the SP3, it's a little cheaper, but it's also 3.5 lbs and only has 1080P resolution. It is probably a better notebook than the SP3 but its weight is problematic as a tablet.
 

shspvr

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Hmm let see
Surface Pro 3 - 12-inch, 64GB / i3/64-bit , $799
iPad Air - 9.7-inch, 128GB, A7/64-bit, $799
Galaxy Note Pro 12.2-inch, 64GB, Exynos 5, $749
 

Insula Gilliganis

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How I am feeling about the Surface..

images_q_tbn_ANd9_Gc_T4_WB_Nm_YHz_E4_HLE6_Tf46_c_Tu_GGONM.jpg
 

Kardonxt

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I really like my surface RT that I got form the refurb/cheap touch cover sale that always pops up on ebay. If I was in the market for a laptop I would consider purchasing an i5 pro for ~500-600 with cover. I have trouble buying anything more expensive than that if it cant play games.
 

Grahamkracka

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I would buy a SP3 if it weren't $1300+ for the specs I wanted. I have plenty use for it, but still can't justify it at current prices when my current hardware + pen and paper do things just fine.
 

jwcalla

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It was MS's way of getting into the hardware business since it can be a bit more lucrative than selling OS licenses on the cheap.

But the company is completely tone deaf to the reality that nobody really likes Microsoft. People use their stuff simply because they have no other choice. So their strategy was set for failure even before the get-go.
 

ManofGod

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It was MS's way of getting into the hardware business since it can be a bit more lucrative than selling OS licenses on the cheap.

But the company is completely tone deaf to the reality that nobody really likes Microsoft. People use their stuff simply because they have no other choice. So their strategy was set for failure even before the get-go.

Nah, it is just people such as yourself banging the I HATE MICROSOFT drum all the time that is the problem. Then people try it for themselves and low and behold, they end up liking it! :D That is ok, it is easier to hate than like.

Myself, I like it all but, since I can really only justify spending so much, I will stick with the PC and Microsoft side of things. I do not find that IPad or Android tablets all that useful for me as a technical professional.
 

ManofGod

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I really like my surface RT that I got form the refurb/cheap touch cover sale that always pops up on ebay. If I was in the market for a laptop I would consider purchasing an i5 pro for ~500-600 with cover. I have trouble buying anything more expensive than that if it cant play games.

I have been really enjoying my same Surface RT refurb with touch cover as well. In fact, I love the fact that there is a Microsoft Store not far away and I was able to get it replaced when the magnets broke away. :) Microsoft supports their hardware quite well from my experience.
 

ManofGod

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I would buy a SP3 if it weren't $1300+ for the specs I wanted. I have plenty use for it, but still can't justify it at current prices when my current hardware + pen and paper do things just fine.

I can understand that but, I am going to go out on a limb and say you probably would not buy an Apple product then either. (I like their stuff but cannot afford it either.)
 

pcjunkie

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You can defend, love, admire, blah, blah ,blah the SP all you want but the losses tell the bottom line truth. It's a niche product they are trying to make mainstream. You don't have losses like that unless you expect to sell shit load of them. How many revisions do you need before you realize that?
 

ManofGod

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You can defend, love, admire, blah, blah ,blah the SP all you want but the losses tell the bottom line truth. It's a niche product they are trying to make mainstream. You don't have losses like that unless you expect to sell shit load of them. How many revisions do you need before you realize that?

Blah, blah, I hate M$, blah, blah. Oh and a good majority of those losses was the Surface RT but, whatever. :rolleyes:
 

pcjunkie

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Blah, blah, I hate M$, blah, blah. Oh and a good majority of those losses was the Surface RT but, whatever. :rolleyes:

Don't hate MS and never did, just don't like some of the directions they've taken. Apparently you hate the truth...in the face of facts just call everyone a hater...nice.
 

mi7chy

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Hmm let see
Surface Pro 3 - 12-inch, 64GB / i3/64-bit , $799
iPad Air - 9.7-inch, 128GB, A7/64-bit, $799
Galaxy Note Pro 12.2-inch, 64GB, Exynos 5, $749

Bingo. I was originally leaning towards the Note Pro 12.2 but the Surface Pro 3 made more sense. Microsoft can sell a lot more if they stop screwing around and offer an i3/8GB/128GB Surface Pro 3 model with Type Cover keyboard for less than $1K.
 

pcjunkie

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Blah, blah, I hate M$, blah, blah. Oh and a good majority of those losses was the Surface RT but, whatever. :rolleyes:

"Continued losses will make it harder and harder for Microsoft to keep the Surface project going, so a good performance in the next quarter or two will be critical to justifying its continued existence,” Dawson added. "My sense is that [Satya] Nadella is less willing to accept losses than was [Steve] Ballmer.
 
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