updated 09:40 pm EDT, Tue July 30, 2013
Annual 10-K with SEC reveals $50 million less earned than spent
Microsoft's annual 10-K filing with the Securities and Exchange Commission (SEC) have revealed some uncomfortable truths about its maligned Surface tablet line. According to the filing, the entire Surface product line has failed to make a profit, with revenue of $853 million -- less than the $900 million write-down on the Windows RT tablet the company announced earlier this month in its quarterly earnings statement.
Aggravating the situation, Microsoft reported that its sales and marketing department increased 10 percent to $1.4 billion company-wide, in large part due to the advertising campaign for the tablet and Windows 8 itself.
Reports in March estimated that Microsoft had sold only 1.5 million Surface tablets combined between both the RT and full Windows 8 versions since release. Microsoft was expecting well over 2 million Surface RT tablets sold just in December of 2012. Microsoft has not released any sales totals for the device.