Microsoft reaping less than it sows in Surface tablets

July 31, 2013 at 1:05 PM
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REDMOND, Wash., July 31 (UPI) -- U.S. software giant Microsoft said in a regulatory filing it had not given up on the Surface digital tablet despite its disappointing financial success.

PCWorld reported Wednesday that Microsoft in a filing with the Securities and Exchange Commission, took one-time charge of approximately $900 million in its fiscal year, which ended June 30, due to Surface inventory that had not sold.

The year also included $898 million in advertising costs, which was attributed to Windows 8 and the Surface.

Revenue from the Surface came to $853 million in the fiscal year, Microsoft said. But the company said it was not yet planning to stop investing in the device.

In the first quarter of the year, Microsoft shipped 900,000 Surface tablets, which gives the company a 1.8 percent market share, far behind Apple Inc., which shipped 19.5 million iPads in the quarter, giving it a market share close to 40 percent.

Microsoft was also far behind Samsung, which held an 18 percent share of the market, Asus, which held 5.5 percent and, which held 3.7 percent.

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