SEC filing reveals Surface brought Microsoft $853 million in revenue
Revenue disclosed by Microsoft in a recent SEC filing says that it sold approximately 1.7 million Surface units since launch and 400,000 Surface Pro tablets.
Microsoft filed its annual 10-K report with the SEC late Tuesday, revealing a detailed picture of what kind of revenue its ill-fated Surface tablet brought the company.
According to the company’s financial statements, the Surface brought in $853 million in revenue from October to the end of its fiscal year in June (this includes the Surface Pro). Considering the Surface was priced at $500 during most of its shelf life, this would account for sales of approximately 1.7 million for the Surface and 400,000 for the Pro. Microsoft disclosed in July that it took a $900 million write down on the Surface because it had made the mistake of building too many tablets and needed to reduce the price by $150 to clear inventory. This means the company was forced to write off more cash than it made on the Surface because of slow sales.
Microsoft also noted that sales and marketing expenses for Windows rose by $1 billion this year, or 34 percent, due to an increase in advertising costs for the Surface and Windows 8.
Microsoft is expected to launch a refresh of the Surface line later this year.
Source: EDGAR (SEC)