Late on Tuesday, Microsoft made their regulatory SEC filing, and in the filing they disclosed their Surface RT numbers publicly. These numbers point to the Surface RT units being less than a $1 Billion business of Microsoft, which came as a shock to many.
The numbers as disclosed in their SEC filing, showed Microsoft’s Surface RT units being less than overall thought of, revenue wise. The shocking and scary numbers point to Microsoft still struggling in the tablet and mobile world, and points to more revisions coming to Microsoft in the future.
Only $853 Million in Revenue
The filing by Microsoft points to only $853 Million in total revenue for the Surface RT business. This lackluster revenue number is a small comparison to others in the mobile tablet space, and are scary for the future of the Surface RT for the company. The slow growth of the Surface RT and then the latest price drops point to struggling sales and slow retail adoption for the units.
Compared to $24 Billion in iPads
An interesting comparison to Apple’s mobile tablet business was made on several sites when this news broke, as Apple has done $24 billion worth of iPads over the last 3 quarters. This large variance between Apple and Microsoft clearly shows where the two companies are different and how Apple dominates the mobile tablet market so far. Android numbers for their tablets though were not included in these figures.
Increased sales and marketing expenses as well
The last bit of news in the filing pointed to Microsoft’s expenses for their sales and marketing of the Surface and Windows 8 products. The expenses grew 10% or $1.4 billion due to the costs and marketing efforts needed to launch these products to the public, companies, and enterprise customers.
This all points to trouble for Microsoft in the tablet space. Clearly, they cannot continue to lose money in the mobile tablet space, and need to clearly find a product that works well, price it fairly in the market, and sell it like crazy. Whether or not Microsoft can do that or not is untold, but the need to do it quickly is apparent. Apple and Android tablets own the space, and a $853 million dollar business won’t suffice for Microsoft.