Microsoft’s iPad-Killer Lost The Company $900 Million Last Quarter

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Remember when Microsoft unveiled the Surface RT last year and people said it totally makes the iPad and the MacBook Air obsolete? So far the Surface RT has been anything but an iPad-killer and according to Microsoft’s latest earnings, it’s losing them a shit ton of money too.

Microsoft’s financial results for Q4 2013 show that the company took a $900 million loss due to Surface RT “inventory adjustments.” The news comes just a few days after Surface RT prices were reduced significantly. Despite the setback, the lost money only comes out of Microsoft’s Windows revenue which was still up year-over-year thanks to Windows 8 sales.

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  • Pompo

    hey it’s only 10 mil/day!

  • Market_Mayhem

    Microsoft was up nearly +30% YTD compared to Apple’s anemic -18% YTD performance despite poor Surface RT sales. Microsoft doesn’t need to sell Surface RTs to be a better investment than Apple. Microsoft makes it look as though Apple isn’t even selling any iPads. It’s definitely appears Steve Ballmer is doing far more for his company than Timid Cook is doing for Apple shareholders.

  • bdkennedy

    Heh.

  • Alfiejr

    “This parrot’s not dead – it’s just pining!”

  • Adrayven

    BAhahahaha! When I first read the slashed prices on CNET, I said something to the fact.. but many said it was because they thought Microsoft was about ready to release a new, amazing version.. BAHAAA!

    The Surface is dead! Long live the Surface! :D

    Microsoft was up nearly +30% YTD compared to Apple’s anemic -18% YTD performance despite poor Surface RT sales. Microsoft doesn’t need to sell Surface RTs to be a better investment than Apple. Microsoft makes it look as though Apple isn’t even selling any iPads. It’s definitely appears Steve Ballmer is doing far more for his company than Timid Cook is doing for Apple shareholders.

    Eh? Pass me what your smoking.. must be some goooood sh!t!

    Before you crow about stock price.. Microsoft going up 30% on a $35 stock price isn’t hard, you’re near bottom anyway!!.. Apple keeping a $400+ stock price is much more impressive. BTW, Microsoft is down 6% in after hours trading.. heh.

    However, even w/o stock comparisons.. The iPhone alone generates more revenue than Microsoft. In Q1 2012, the iPhone generated $24.42 billion revenue. During the same quarter, all of Microsoft: $20.89 billion. in all honestly, a good sales man doesn’t need a good product, just WS idiots.. . They don’t know tech. They mostly watch Facebook/Twitter, listen to rumors, and use that to base for their ‘predictions’ of potential.

    Some of them look at the long term numbers.. That type is a dyeing bread… It’s mostly about micro-trading.. Which is why I don’t trust WS, and think Dell has the right idea. Get out. Wish more tech companies could/would. Tech companies would be allowed to innovate instead of listing to the lemmings complain about instant gratification returns.

  • TechBell

    They tried. Overpriced for unit and keypad. With tax, they were pushing $650 for a tablet that really couldn’t do all that much.

  • Jonnie

    Actually, at USD199 the RT is a great product. Tablet can never be main device to work on in EDU. What disappoint me was the people in Microsoft. They just do not have the urgency, sales knowledge or market knowledge to push this to everyone. Bad marketing, over complicated process, little focus on integration (still a box pusher).

  • JustinSharkey

    Microsoft was up nearly +30% YTD compared to Apple’s anemic -18% YTD performance despite poor Surface RT sales. Microsoft doesn’t need to sell Surface RTs to be a better investment than Apple. Microsoft makes it look as though Apple isn’t even selling any iPads. It’s definitely appears Steve Ballmer is doing far more for his company than Timid Cook is doing for Apple shareholders.

    I’m not sure if your kidding (I kind of hope you are) because Apple is the most valuable company in the world..

    PS Steve Balmer is ridiculous and even Microsoft fans want him out… What at CEO..

    http://www.youtube.com/watch?v=I14b-C67EXY

  • Andrew Newsome

    The iPad & Macbook Air killer is the Surface Pro.

    I understand this is an Apple website, but come on.

    The Surface RT isn’t bad, there just aren’t the same amount of apps as iOS and Android. Not to mention the screen, and power of it is just too slow.

    The Surface Pro is a really nice concept. Toss up between that or and Macbook Air is a fair comparison.

  • jimothyGator

    The iPad & Macbook Air killer is the Surface Pro.

    Oh yes, as witnessed by the stellar success of the Surface Pro and death of the iPad and Air.

  • Sjheise

    Something died, but it wasn’t the Ipad. Too bad MSFT.

  • Market_Mayhem
    Microsoft was up nearly +30% YTD compared to Apple’s anemic -18% YTD performance despite poor Surface RT sales. Microsoft doesn’t need to sell Surface RTs to be a better investment than Apple. Microsoft makes it look as though Apple isn’t even selling any iPads. It’s definitely appears Steve Ballmer is doing far more for his company than Timid Cook is doing for Apple shareholders.

    I’m not sure if your kidding (I kind of hope you are) because Apple is the most valuable company in the world..

    PS Steve Balmer is ridiculous and even Microsoft fans want him out… What at CEO..

    http://www.youtube.com/watch?v=I14b-C67EXY

    Yes, I was kidding. I was pointing out the irrationality of the stock market more than anything else. You do have to realize that those numbers are correct for whatever reasons. Even after earnings, Microsoft should not be as high as it is for the performance it’s delivering. However, I still think Timid Cook could be doing a better job of putting value into Apple even though the hedge funds control the stock market.

About the author

Buster HeinBuster Hein is Cult of Mac's Senior News Editor and lives in Phoenix, Arizona. Twitter: @bst3r.

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