The cost of selling Surface tablets continues to outpace the revenues they bring in, according to Microsoft’s latest filing with the US Securities and Exchange Commission.
In the three months to the end of March 2014, Microsoft made US$494 million in revenues from the sale of the Surface.
However, the cost to the company was US$539 million, meaning it spent US$109 for every US$100 it made on the devices - US$5 more than in the previous quarter.
Looking at the nine-month period ending 31 March 2014, the company made a US$300 million loss on the Surface, racking up costs of US$2.1 billion.
Microsoft said the hardware revenue generated by its Devices and Consumer division - which includes the Surface - increased 41% compared to the quarter ending 31 March 2013.
The company attributed this in part to an increase in the number of Surface units sold. However, the increase in cost of revenue was attributed to the same thing, effectively cancelling itself out.
Microsoft has struggled to generate interest in its Surface tablets since its launch in October 2012 and has not yet managed to make a profit on the devices 18 months after launch.
Last year, it admitted its branding had confused consumers, which could have hampered sales.
In IDC’s latest tablet shipments report, Microsoft is not listed among the top five vendors, indicating it sold fewer than one million units in the first quarter of 2014.
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