Microsoft Corporation (MSFT) $1.1 Billion Tablet Revenue at a Cost of 50 Million Per Year in Ads?


Microsoft Corporation (NASDAQ:MSFT) has suffered badly in the Tablets business, but things are not changing for the Redmond giant. In an article on The Street, it was reported that the company is now spending around $50 million per year to advertise its tablets, and the results are coming. A latest IDC report said that the total tablet share by Microsoft Corporation (NASDAQ:MSFT) market is around 2.5%, which is negligible but still, better than before.

Microsoft Corporation (NASDAQ:MSFT)’s new CEO Satya Nadella has struck many deals with big companies like Apple, DropBox and IBM to enter the Enterprise. He is taking the path of openness, by letting the other companies integrate. Microsoft Corporation (NASDAQ:MSFT) shipped around 1.3 units of tablets which is a good sign. The source said that Surface Pro 3 tablet has been hailed as a game changer for the company as it is being very well-received in the markets.

Microsoft Corporation (NASDAQ:MSFT)’s tablet revenue went up by 24% because of surface Pro 3 tablet, despite for the fact that tablet industry around the world is declining. According to Gartner, there will be a decline of 8% in the tablet sales in2015 as compared to the last year. The reason behind this decline is the rise of Phablets.

The source also added that the increase in sales for Microsoft Corporation (NASDAQ:MSFT) are coming at a heavy cost. It has spent way more than its competitors in ads. Also, the change for Microsoft Corporation (NASDAQ:MSFT) in the table business is not that meteoric that could suggest its dominance over Google and Apple.

As of 30 June 2014, Ken Fisher’s Fisher Asset Management hold around 17.7 million Microsoft Corporation (NASDAQ:MSFT) shares.

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