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Microsoft Writes Off $900 Million on Surface Tablets

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#1 JasonMiles

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Posted 19 July 2013 - 12:10

Microsoft on Thursday reported lower-than-expected quarterly earnings as faltering PC sales ate into its Windows business and the company took an unexpected $900 million (£591m) charge for its inventory of unsold Surface tablets, sending its shares down 5% in after hours trading.

The massive charge underlines the struggles of the world's largest software company, which last week announced a deep reorganisation to transform itself into a "devices and services" leader, but is struggling to make mobile devices as attractive as those from Apple or Samsung.

 

 

 

http://www.ibtimes.c...ace-tablets.htm




#2 +TruckWEB

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Posted 19 July 2013 - 12:24

First batch of Surface RT, while good, suffered from poor Tegra3 performance and Windows 8.0 and lack of good "Modern" apps.

 

Bring on Surface RT 2 with a better CPU/GPU and Windows 8.1 and it should get better.  Oh and please, go 1080!!!



#3 Rudy

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Posted 19 July 2013 - 12:33

Not really unexpected, while I've seen many ads for them I've yet to have seen anyone use one.

 

I must admit they did a great job with the keyboard, it's one thing i really wished Apple would include in the iPad5



#4 goodbytes

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Posted 19 July 2013 - 12:37

Never seen one used and never seen one in any shops, only advertising i've seen is some crazy dancing advertisement on TV which really didn't sell them at all. I'm sure it's a great device but without apps it's nothing.. The guy above says 'bring on RT2', if the app adoption rate is the same then it's not going to be an improvement at all..



#5 +Phouchg

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Posted 19 July 2013 - 12:56

Gah. Better to write off than make available in more countries and stores. iPads, Android tablets, both proper and knockoffs of all kinds are available in every store that I know of. This thing here - rarely anybody who isn't technically inclined has even heard about it, much less has considered or knows how to get a hold of one. They were two years late to the market, what did they expect? Disappointed former Apple/Google cultists standing in lines for days for the long awaited enlightment and spiritual uplift? They're not even trying to compete!

 

Seriously, if this is where the dancing monkey is leading that whole circus and trying to play the card of Surface's fake exclusivity, well deserved. Write off, stomp on them and then bury them in the desert.



#6 reactionary007

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Posted 19 July 2013 - 13:01

Wow - 900 million is a lot of money.  Almost 1billion dollars!  Ouch...



#7 ahhell

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Posted 19 July 2013 - 13:15

Wow - 900 million is a lot of money.  Almost 1billion dollars!  Ouch...

 

Your math skills are astounding!!  :laugh:

 

Not a big surprise.  RD alone on the Surface would have been hundreds of millions.



#8 vetneufuse

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Posted 19 July 2013 - 13:17

It's the Windows RT versions that are causing them problems, honestly, I think the ARM route was a waste of time and money for MS... make the ARM version be the phone OS and ditch windows mobile... people don't seem to want a watered down version of windows for ARM



#9 ShadowMajestic

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Posted 19 July 2013 - 13:37

It's the Windows RT versions that are causing them problems, honestly, I think the ARM route was a waste of time and money for MS... make the ARM version be the phone OS and ditch windows mobile... people don't seem to want a watered down version of windows for ARM

If MS didn't aim for ARM, Intel and AMD wouldn't have invested so heavily in creating low-powered chipsets.

Seems it was a 'risk' they had to take.



#10 vetneufuse

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Posted 19 July 2013 - 14:05

If MS didn't aim for ARM, Intel and AMD wouldn't have invested so heavily in creating low-powered chipsets.

Seems it was a 'risk' they had to take.

 

there would of still been the phone markets, I'm just saying ARM on a tablet for windows wasn't the best idea... move windows RT to the phone and ditch the phone OS



#11 primexx

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Posted 19 July 2013 - 14:06

So many unsold. Maybe they should give all of us who pre-ordered an extra one as a thank you, since' they've written it off already anyway :p



#12 sc302

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Posted 19 July 2013 - 14:12

surface rt garbage...surface pro hard to get hands on. 

 

It isn't the pro that hasn't sold, it is the rt no one wants.



#13 OP JasonMiles

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Posted 21 July 2013 - 08:50

Never seen one used and never seen one in any shops, only advertising i've seen is some crazy dancing advertisement on TV which really didn't sell them at all. I'm sure it's a great device but without apps it's nothing.. The guy above says 'bring on RT2', if the app adoption rate is the same then it's not going to be an improvement at all..

Me either. Those advertisements look like advertisements from TAMPAX. You never get to see the tampons, just "happy" people dancing around and enjoying a better life. For whatever that means. :laugh:



#14 +Anarkii

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Posted 21 July 2013 - 09:18

Shops in Australia (at least where I live) don't stock them anymore. They just don't sell. 
They should refocus their efforts back to the desktop market, yeah not many people are buying desktops these days but to a large degree that is Microsoft's fault. 
Windows 8 and 8.1 are still focussed firmly at touch devices, and desktop owners are still banging their heads on the tables wanting that desktop focussed update.
Did Microsoft forget that most of its Windows users are on desktop computers?

Anyway, no real loss that the Surface tablets have bombed apart from the 900m they spent making them, which is also pocket change really.



#15 dvb2000

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Posted 21 July 2013 - 09:27

the company took an unexpected $900 million (£591m) charge for its inventory of unsold Surface tablets

 

and THEY bagged all the PC makers for not producing hardware that "took advantage" of Windows 8 features.

 

Karma is a bitch eh Microsoft.