Microsoft takes $900 million hit on Surface RT

Discussion in 'Windows' started by Jon, Jul 18, 2013.

  1. Jon

    Jon Well-Known Member

    Microsoft just announced earnings for its fiscal Q4 2013, and while the company posted strong results it also revealed some details on how the Surface RT project is costing the business money. Microsoft's results showed a $900 million loss due to Surface RT "inventory adjustments," a charge that comes just a few days after the company officially cut Surface RT prices significantly. This $900 million loss comes out of the company's total Windows revenue, though its worth noting that Windows revenue still increased year-over-year. Unfortunately, Microsoft still doesn't give specific Windows 8 sales or revenue numbers, but it probably performed well this quarter to make up for the big Surface RT loss.

    At the end of the day, though, it looks like Microsoft just made too many Surface RT tablets — we heard late last year that Microsoft was building three to five million Surface RT tablets in the fourth quarter, and we also heard that Microsoft had only sold about one million of those tablets in March. We'll be listening to Microsoft's earnings call this afternoon to see if they further address Surface RT sales or future plans.

    Microsoft took a $900 million hit on Surface RT this quarter | The Verge
  2. TX WJ

    TX WJ Intelligent Donkey

    If they think that the surface will compete with the iPad, well that just plain silly and will be an expensive lesson to learn.

    HP had OS and it was really good, but they couldn't make it work.
  3. DAB

    DAB Mod Emeritus

    Manco thinks the Surface RT is the best thing since sliced bread! LOL Clearly MS missed the boat with the Surface (which isn't surprising).

    Windows 8 adoption rate has been dismal too, if it wasn't forced on computer manufactures it probably wouldn't be selling at all.
  4. Manco

    Manco Active Member

    Yes I do think it's great, and getting better. With 8.1 it's like getting a new machine, although I would much rather get Surface 2 for the speed, battery life and speed improvements. The write-off shouldn't be interpreted as a failed device, the device is fine, it's because they overestimated demand and bought way too much inventory, even though they didn't have enough stores selling them to move any product. I predict Surface 2 will hit their stride since they have more pieces in place, more stores, more advertising as to the benefits (rather than singing and dancing) and the Store is so much better than it was a year ago.

    Surface 2 is a great value - fast performance, good display, expandable storage and external connections to a projector, with full office. I have used my Surface RT for a couple presentations and it works wonderfully at 1080p projection, and is so convenient to take everywhere I go. I don't bring a laptop in my travels anymore, Surface RT is all I need.
  5. DAB

    DAB Mod Emeritus

    Long as you are happy it doesn't matter what I think, I've messed around with the Surface RT, but the Pro is a much better product.

    I hope your prediction comes true, because Just having Apple and Google as the only options won't be good for the marketplace. MS needs a winner! RT is in no way considered a winning product, though I think the Pro by most is viewed with a little higher regard.
  6. Manco

    Manco Active Member

    There is a place for both Pro and RT, I hope they don't give up on either. The RT has better battery life, is lighter, supports active standby so you can listen to music while it is "off" and costs a lot less. It's also not vulnerable to virus's like a full version of windows is. The benefits of RT are there so long as people understand and accept the differences.

    Maybe I'm unusual, but I really like the one device for all idea. So in that regard the Pro is closer to that ideal, but Surface RT is there for those that only need office, internet, and metro apps.

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