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Microsoft takes $900 million loss due to Windows RT devices

Written by Andre Yoskowitz (Google+) @ 18 Jul 2013 22:33 User comments (9)

Microsoft takes $900 million loss due to Windows RT devices Microsoft has reported its fiscal Q4 2013 earnings today, admitting to some unexpected losses and missing estimates.
The company has reported revenue of $19.9 billion and profits of $4.97 billion, much lower than the analyst estimates of $20.74 billion in revenue and $5.51 billion profit.

One of the biggest drags on earnings was the Windows RT-based Surface RT. The company has taken a $900 million writedown related to "Surface RT inventory adjustments." That most certainly means there is a ton of excess supply and the company just recently slashed the prices of the tablet from $500 base to $350 base.

The failing PC market certainly did not help matters as desktop and laptop sales fell double digits, again.

"While our fourth quarter results were impacted by the decline in the PC market, we continue to see strong demand for our enterprise and cloud offerings, resulting in a record unearned revenue balance this quarter. We also saw increasing consumer demand for services like Office 365, Outlook.com, Skype, and Xbox LIVE," said Amy Hood, chief financial officer at Microsoft. "While we have work ahead of us, we are making the focused investments needed to deliver on long-term growth opportunities like cloud services."

One saving grace for the Windows division (which still had a profit of $1.09 billion) but has been hurt by lackluster Windows 8 sales, is that enterprises (including a few massive corporations) have upgraded their entire systems from XP to Windows 7. The company's business division sales saw an insane $4.87 billion profit on $7.231 billion in revenue.

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9 user comments

118.7.2013 22:39

Heh.

Since I DON'T dislike saying so, at least in this case:
I TOLD YOU SO, MICROSQUISH! xD
*cough*

This message has been edited since its posting. Latest edit was made on 18 Jul 2013 @ 22:40

218.7.2013 22:59

wait,,time to bring out Windows 9,,




microsoft after a ban wave

318.7.2013 23:04

So glad I don't use win 8 at work, let alone at home. Then again I don't use windows at home :D

418.7.2013 23:32

how many millions did they waste on advertising alone?...Yeah, I really want to buy a piece of technology after seeing a bunch of assholes dancing with it and a price drop isn't going to make a difference not to mention the job slashing that's about to take place in their marketing department.
I believe there was an article on AD about the tablets being almost impossible to repair too. Microsoft is on the verge of collapse.


your conscience doesnt absolve your guilt

518.7.2013 23:44

MS thought they could sell surface RT? if you think about performance and user experience, this is worst tablet ever from a big shot (at par with crappy tabs from blackberry, karbonn, micromax, and so on).


ASUS G73JW | Intel Core i7-740QM, 1.73GHz | 8GB DDR3 | Nvidia GeForce GTX 460M, 1.5GB | OCZ 120GB SSD + Seagate 500GB Hybrid 7200rpm | 17.3" FHD/3D | Blu-ray Write | Win7Pro64

619.7.2013 4:54

They could have paid me $450 million and I would have warned them it would fail.


719.7.2013 8:36

Originally posted by mukhis:
MS thought they could sell surface RT? if you think about performance and user experience, this is worst tablet ever from a big shot (at par with crappy tabs from blackberry, karbonn, micromax, and so on).
To be fair, the playbook was worse...and I think Blackberry was still technically a big shot back then. Actually...if there was ClockWorkMod for the Surface RT (and if they were not colored like eggs at easter), I wouldn't mind spending $150 on the 64GB touch cover version...only $400 more discount to go.


820.7.2013 1:31

[INSERT NELSON LAUGH]

922.7.2013 11:03

Does anyone remember when Cisco tried to break into the Tablet market? Then also the HDTV market as well with an HD webcam permanently mounted on top?
Both of which crashed & burned!

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