Microsoft Report: Surface Tablet Sales Double, Net Loss Of About $40 Million Remains

In Microsoft's recently released financial report, the company boosts of their Xbox console sales and doubled Surface tablet sales since the last financial report, but the company may still be losing money on the tablet/personal computer, according to DigitalTrends.com.

The company reported they had sold 3.9 million Xbox consoles in only five weeks, and the Surface had a revenue of $893 million, more than half from the last report which said only $400 million worth had been sold, DigitalTrends.com reported.

The share for Surface has lowered to 2.2. percent and is much smaller compared to Google and Apple shares, DigitalTrends.com reported.

After mentioning Surface has sold $893 million, the report also goes on to say this is twice the amount than the previous three months, but gives no other figure or explanation of where the revenue is coming from, according to DigitalTrends.com.

Since going on sale in October 2013, the newer models, Surface 2 and Surface Pro 2, have been both discounted and sold at cheaper prices than the original number between $800 and $1,000, DigitalTrends.com reported.

The report also highlights the Surface cost of revenue of $932 million, meaning Surface is still facing a net loss of about $40 million, even though sales have doubled, according to DigitalTrends.com.

After examining the numbers, DigitalTrends.com estimated about 1.7 million Surface tablets were sold at an average price of $500, which is in between the cheaper and the more expensive Surface tablets being sold, DigitalTrends.com reported.

It was already expected Microsoft would sell around 1.4 million tablets in its final three months, so the figure is probably "in-between," according to DigitalTrends.com. The report does not specify what amount of revenue comes from tablet accessories.

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