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.
It doesn’t look like Surface has really been working out for Microsoft. I think the hardware’s pretty great, the software is well below par (as a tablet!), but yet, people aren’t buying them. Combined with Windows Phone’s and Nokia’s inability to make any form of profit, it looks like Microsoft’s ‘devices’ focus has been a pretty big failure. At the glacial pace with which Lumia sales are growing, it might take the company several years before turning a profit and recouping all the investments made (e.g. Nokia acquisition).
If that happens at all. They might not even recoup anything and lose in result. That’s why MS is so desperate to milk Android vendors with their racket patents. Because it’s solid income for them, unlike their failing mobile projects.
Edited 2014-08-07 20:17 UTC