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Microsoft's Surface tablets are selling quite well, but there's a catch

by David Needle

January 24 2014

Last year Microsoft took a $900 million charge to cover unsold inventory of its Surface (mainly Surface RT) tablets. What a difference half a year makes.

In its latest earnings report Microsoft said it generated $893 million in revenue from Surface tablet sales in the fiscal quarter ending December 31st, 2013.

That’s over twice the $400 million revenue the Surface division brought in during the previous quarter, but the news isn't all good. 

Microsoft actually spent $932 million in order to make $893 million. In other words, Microsoft, at least for now, is actually losing a bit of money on each Surface tablet it sells. 

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