In the quarterly earnings results published by Microsoft, it was revealed the Surface sales revenue was down from the previous quarter despite the launch of Surface Pro 3. The revenue was at $409 million down from $494 million last quarter. Gross margin growth was result of the Surface RT $900 million write down last year. Microsoft also confirmed it via quarterly financial results. In the Computing and Gaming Hardware related slide, Microsoft mentioned that current year cost of revenue included Surface inventory adjustments resulting from their transition of production to latest Surface offering and a decision to not ship a new form factor. Read more about it here.

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