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Microsoft Surface makes $853 million, less than Surface & Win8 marketing spend

Wednesday, 31st July 2013 12:54 GMT By Dave Cook

Microsoft’s Surface has made $853 million / £560 million which is less than the company has spent on marketing the tablet line and Windows 8 combined.

Eurogamer reports that while Microsoft has remained silent on how well the Surface family of tablets has performed at market, it had to give up the details in its annual report to the US Securities and Exchange Commission.

The company revealed that the Surface brand has made $853 million since it debuted in October. It’s not a small number by any measure, but it comes ahead of an expected $900 million loss in potential income as a result of Surface price-drops.

The figure comes in below Microsoft’s $898 million marketing spend on Surface and Windows 8. Some 1.7 million Surface units were said to have been sold between its October launch and June 30.

Microsoft Surface is expected to receive new models later this year.

What do you make of the above?

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9 Comments

  1. The Auracle

    Seeing as the Surface tabs have only been out for six months or so, this is a fantastic start. Should things continue as they are, they’ll break even in no time.

    #1 1 year ago
  2. Dave Cook

    @1 Yeah, it could be onwards and upwards. We’ll see though.

    #2 1 year ago
  3. SlayerGT

    My buddy loves his (MS fan). It’s ok. I couldn’t see someone replace an iPad for it though. Regardless of how functional it is the apps aren’t there.

    #3 1 year ago
  4. Tech-N9ne

    @3 Agreed. Great and very functional device. But app are lacking. Not much MS can do on that front. I guess its a matter of time before most popular apps come.

    #4 1 year ago
  5. The Auracle

    It’s always down to a matter of time. The criticism about the lack of apps is one that every single operating system with an application store gets when they first start out. Bear in mind: Windows 8 and the Microsoft Store aren’t even a year old. Neither is the Surface.

    Conversely, look at Windows Phone. Laughed at in it’s first year, overtook BlackBerry’s market share the year after that (http://www.theverge.com/2013/5/16/4336298/windows-phone-overtakes-blackberry-to-claim-third-place) and those devices outsell Apple devices in seven markets (http://www.zdnet.com/windows-phone-outsells-iphone-in-seven-markets-blackberry-in-26-7000013236/).

    Moral of the story: things look pretty okay for MS. They aren’t setting records but they are surpassing milestones at a decent pace. Considering the failure that is Windows Mobile, this is quite significant.

    #5 1 year ago
  6. DrDamn

    Just as a comparison iPad sold ~11m in it’s first three quarters on sale. In these same three quarters the Surface has been on sale iPad sold ~44m units. So not a fantastic start no. It was always going to be tough though and I don’t think there is enough to distinguish it as a device over an iPad or Android Tablet.

    I did have a WP7 device as my last phone and I quite liked the interface. Apps were lacking but I had what I needed. Did not like the dumping of WP7 devices when WP8 came out though.

    #6 1 year ago
  7. MrWaffles

    Their market analysis department is just crazy.

    They overestimated the number of folks who:
    1) Wanted a tablet
    2) Could spend $500 on a tablet
    3) Didn’t have an iPhone/ipod touch/android (brand loyalty, ecosystem investment)

    To me, the pricepoint of the RT seemed insane, not mentioning the pr clusterfuck they created by trying to differentiate it from the PRO.

    Also, the distribution of Surface outside US/CAN/UK/DE is bullshit, you’ll find it on 5% of stores handling this line of products, and the retailers don’t push it because the users don’t ask for it (confusing advertising being the main reason).

    Apologies for the long comment/rant, I really love the Windows 8 experience on mobiles, and want the PRO to be cheap enough to be successful, but right now Microsoft is just pissing on its feet.

    -Waffles

    #7 1 year ago
  8. MCTJim

    We had 5 originally and just got 5 more with the price drop. They work fantastic on a Windows Server based network..The Pro ones are wayyy better but wayyy more expensive.

    #8 1 year ago
  9. DUST3222

    @5 windows phone is still shit I have one there are bunches of apps now but they’re made by amateurs and most of the time they freeze, exit out, or don’t work at all

    #9 1 year ago

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