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).