Many tech blogs were covering Microsoft’s Surface RT failure yesterday as this report said a 900 million USD down in Q4 earnings this fiscal year. Those were,
- Why Microsoft’s Surface RT Failed (Mashable OP-ED by Christina Warren)
- Microsoft’s $900 million Surface RT write-down- How did this happen? (All About Microsoft – Mary Jo Foley)
- Microsoft Q4 Earnings- A Surfeit of Surfaces and the Post-PC Era = Trouble (All Things D – Kara Swisher)
- Diving Below the Surface- Here’s All the Microsoft Q4 Charts and More to Peruse (All Things D – Kara Swisher)
- Microsoft took a $900 million hit on Surface RT this quarter (The Verge – Nathan Ingraham)
But they forget to cover (or may be they would not like to cover) these statistics
◆ Microsoft Business Division revenue grew 14% for the fourth quarter and 3% for the full year.
◆ Office 365 is now on a $1.5 billion annual revenue run rate.
◆ Server & Tools revenue grew 9% for the fourth quarter and 9% for the full year.
◆ Windows Division revenue grew 6% for the fourth quarter and 5% for the full year.
◆ Online Services Division revenue grew 9% for the fourth quarter and 12% for the full year.
◆ Bing organic U.S. search market share was 17.9% for the month of June 2013, up 230 basis points from the prior year period.
◆ Entertainment and Devices Division grew 8% for the fourth quarter and 6% for the full year. Xbox LIVE grew nearly 20%
“We continue to see strong demand for our enterprise products and services, with more and more customers making long-term commitments to the Microsoft platform, The growing adoption of our cloud services, including Office 365, Windows Azure and Dynamics CRM, continues to demonstrate our leadership position in the cloud.” – Kevin Turner, chief operating officer at Microsoft.
Surface is a new thing to market and still many self called tech geeks do no understands its functionality and eco system.
This is also not the first time Microsoft has had a division take hits like this. Remember the Red Ring of Death on the Xbox 360 console? That was more than $1 billion dollars Microsoft spent to extend the warranty of and repair those defective consoles. We all know what happened with Xbox 360 after that got sorted out – profitability and top of the sales charts in the US for the last 2 1/2 years.