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Old 20-07-13   #1
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Exclamation Surface Turns Disaster for Microsoft - $900 Million Loss Written Off




Microsoft’s Surface RT tablet has been now been officially confirmed to be a disaster in the market. On Thursday, Microsoft said it took a $900 million charge in its fiscal fourth quarter from what it described as "inventory adjustments" for the Surface RT tablet, which was launched in October.

Most of the Surface tablets are said to be gathering dust in warehouses and are also getting outdated. If they are not sold within the next few months chances are that most will end up being recycled.

Earlier Microsoft had adopted the strategy of making the Surface very expensive so that people consider it to be a premium product. However after disastrous sales Microsoft are finally rethinking this to reduce losses. On Sunday Microsoft chopped $150 from the price of its entry level 32-GB Surface RT tablet, which now sells for $349.

Distribution and availability is also a big problem for the Surface. Their strategy of opening their own shops doesnt seem to have worked at all. I think they could have easily sold many more if they priced it at $200-250 and made it available in more countries. As of now the Surface tablet is not officially available for purchase in India. Perhaps we will get some when some Indian scrap dealer imports them for recycling.

Sources : Microsoft Takes $900 Million Writeoff on Tablet - Digits - WSJ | Microsoft Takes $900M Charge On Surface RT 'Inventory Adjustments'
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Old 20-07-13   #2
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Re: Surface Turns Disaster for Microsoft - $900 Million Loss Written Off

Despite A $900 Million Loss, Microsoft Continues To Attack iPad [VIDEO]

good spirit.. keep it up MS
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Old 20-07-13   #3
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Re: Surface Turns Disaster for Microsoft - $900 Million Loss Written Off

And its not just the Surface, if Microsoft dont act fast then the whole Windows RT operating system is doomed. Something which I foresaw from the onset.

To save RT, they need to make the OS free and should allow manufacturers to install it on any device of their choosing. Open up the app ecosystem and encourage people to make software for RT. However its unlikely that they will be doing any of this.
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Old 20-07-13   #4
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Re: Surface Turns Disaster for Microsoft - $900 Million Loss Written Off

i second that... but MS providing free OS seems unlikely.
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Old 20-07-13   #5
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Re: Surface Turns Disaster for Microsoft - $900 Million Loss Written Off

Agreed .. if not free then take just a nominal charge of a few dollars. Not more that $5-10 and dont insist on charging for office along with it. The $85 that they were charging was just too much for such a raw OS.
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Old 20-07-13   #6
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Re: Surface Turns Disaster for Microsoft - $900 Million Loss Written Off

os + office for free... sales will skyrocket in few days but yes a nominal fee will surely increase the sales highly.

MS is looting customers and donating it to bill and melinda gates foundation modern day robinhood
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Old 21-07-13   #7
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Re: Surface Turns Disaster for Microsoft - $900 Million Loss Written Off

Surface RT - OS was crippled with no free productivity software out of the box, you needed to buy Office. Good design, flawed performance, hiccups.

Surface PRO - Gorgeous design, powerful hardware with an obnoxious price tag and a botched up battery life.

Both of these devices had so much potential yet some of the awful decisions killed the market for them. No wonder they're running in red for these. But knowing Mr.Ballmer and his lack of accepting faults, this is normal. He'd still say Surface is selling like hot cakes and poke fun at Android and iOS.
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Old 21-07-13   #8
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Re: Surface Turns Disaster for Microsoft - $900 Million Loss Written Off

Originally Posted by ChironX View Post
But knowing Mr.Ballmer and his lack of accepting faults, this is normal. He'd still say Surface is selling like hot cakes and poke fun at Android and iOS.
Actually they have gone totally silent on the numbers sold. Even when journalists repeatedly asked for any numbers they dont say how many were sold.

According to PC worlds calculations, about 6000000 Surfaces are gathering dust in warehouses. Man the lifeboats! The Surface RTitanic is sinking fast | PCWorld and Microsoft themselves have little hope that there will be any significant drop in that number. Mostly after some time the Vapor Mg cases will be melted and any parts scavenged. The only reason they are not giving it away for free (which they should) is because it will be a severe blow to their prestige.

But Microsoft have a lot of money left from cash cows like Windows and office so as Huffington post put it :
Leaks suggest that Microsoft is expected to sell its second line of Surfaces within the year. Microsoft is one of the few companies rich enough to blow nearly a billion dollars selling a product and continue full-steam doing the same thing -- which, it should be noted, is some people's definition of insanity. Get ready to watch, GIF-like, Microsoft stumble again.
Microsoft's Surface RT Didn't Have To Be A $900 Million Disaster
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Old 21-07-13   #9
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Re: Surface Turns Disaster for Microsoft - $900 Million Loss Written Off

Originally Posted by vijayninel View Post
And its not just the Surface, if Microsoft dont act fast then the whole Windows RT operating system is doomed. Something which I foresaw from the onset.

To save RT, they need to make the OS free and should allow manufacturers to install it on any device of their choosing. Open up the app ecosystem and encourage people to make software for RT. However its unlikely that they will be doing any of this.
how will MS make money out of it then? I think thats the problem google is facing with android right now...

Honestly, all windows needs right now is some good apps. Rather, a lot of good apps.
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Old 22-07-13   #10
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Re: Surface Turns Disaster for Microsoft - $900 Million Loss Written Off

Originally Posted by rajan1311 View Post
how will MS make money out of it then? I think thats the problem google is facing with android right now...

Honestly, all windows needs right now is some good apps. Rather, a lot of good apps.
They can think of ways to monetise it after it is established. First let it get established at least. Low/free pricing would have been a good way to establish themselves in the market. RT was always going to be tough because they were so late in the market. It needed a kickstart to establish a decent market share, unfortunately Microsoft was too short-sighted and arrogant for that,

Google doesn't directly make money out of Android licensing, but it indirectly makes a lot of money from Android by bringing people into the Google ecosystem. Once people get hooked to Android, they start using other Google services too some of which is profitable to Goggle. This also allows them to sell you/your data to other advertisers, service providers, marketing people etc.

RT is doomed. MS should now kill it and make a new touch based OS for tablets. Dont mix it with desktop/laptop functionality.
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Old 22-07-13   #11
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Re: Surface Turns Disaster for Microsoft - $900 Million Loss Written Off

Originally Posted by vijayninel View Post
This also allows them to sell you/your data to other advertisers, service providers, marketing people etc.
That would really piss off some people

Anyways, MS have always been arrogant, just like how Nokia was in the initial days of the smartphone boom.
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Old 22-07-13   #12
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Re: Surface Turns Disaster for Microsoft - $900 Million Loss Written Off

Originally Posted by rajan1311 View Post
That would really piss off some people
Those people are a minuscule minority. Most dont know and/or dont care. Others like me who know and are a bit concerned still cant do anything about it because we cant live in a isolated environment. Therefore I am forced to buy android devices and use Google services because I have no choice.

Before the launch of RT, I was really excited about the prospects of the Windows ARM OS. I thought it could be a game changer and give us some real choice. Sadly it was not to be. When the first details were released, I knew this is what they were heading for.
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Old 22-07-13   #13
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dont you think eventually MS would have done the same?

selling personal info to advertisers and other firms...

Last edited by vijayninel; 22-07-13 at 02:38 AM.
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Re: Surface Turns Disaster for Microsoft - $900 Million Loss Written Off

Originally Posted by bharat14101991 View Post
dont you think eventually MS would have done the same?

selling personal info to advertisers and other firms...
Yes ...but they are not as sophisticated like Google in that. When Google does it seems like they are doing it for free and doing you a favour ... while they are not. When Microsoft do it, it immediately becomes obvious that they are trying to extract juice out of you. Besides to do that you have to have a good market share of people/data to sell. You have to bring people into your ecosystem even if they dont directly benefit you. Because those people are eventually connected to people who give you profits. Look how many people have Gmail accounts and how many have live accounts.
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Old 22-07-13   #15
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Re: Surface Turns Disaster for Microsoft - $900 Million Loss Written Off

Originally Posted by vijayninel View Post
Yes ...but they are not as sophisticated like Google in that. When Google does it seems like they are doing it for free and doing you a favour ... while they are not. When Microsoft do it, it immediately becomes obvious that they are trying to extract juice out of you. Besides to do that you have to have a good market share of people/data to sell. You have to bring people into your ecosystem even if they dont directly benefit you. Because those people are eventually connected to people who give you profits. Look how many people have Gmail accounts and how many have live accounts.
android is free so people dont realize and priase that a big company is giving there s/w for free where as windows charge way too much that a normal public cant afford so they make it free (pirate it)

now if you pay 10k+ for W7 64 bit (add more for office suite) and you see a company selling your details then its obvious you will be pissed
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