Losses mount for Microsoft's Surface tablet line

Economies of scale continued to elude Microsoft's Surface line as the tablet lost more money in the March quarter than in the preceding three-month period, regulatory filings showed.
In a 10-Q filed Thursday with the U.S. Securities and Exchange Commission (SEC), Microsoft reported $494 million in revenue from the Surface, the tablet line-up that debuted in 2012 and was refreshed last year. Revenue was down 45% from the December quarter but up more than 50% from the same quarter in 2013.
Microsoft pegged cost of revenue for the Surface at $539 million in the quarter that ended March 31.
 
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