If you are following Microsoft for the past few years, you might not be surprised to hear that Microsoft continues to lose money on its Surface tablets. ComputerWorld spoke with an analyst and concluded that Microsoft could have lost over $1.7 billion since its launch. In the last quarter, Surface business posted a revenue of $409 million and the cost of revenue was at $772 million. So, Microsoft lost about $363 million and they even mentioned in the financial reports that current year cost of revenue included Surface inventory adjustments resulting from our transition to newer generation devices and a decision to not ship a new form factor.” In FY2014, Microsoft lost about $676 million and in FY2013, Microsoft lost about $1.049 billion (including $900 million write-off). But does it matter to Microsoft? ComputerWorld and their analyst claims that Microsoft may stop investing in Surface if this loss continues for few more quarters. But, I think Microsoft has enough balance sheet and cash flow to continue Surface business until it...

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