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Microsoft Lost $900m On Surface Tablets

Author:
Jonathan Lester
Category:
News
Tags:
Microsoft, Microsoft Surface, Tablet

Microsoft Lost 0m On Surface Tablets

Microsoft has admitted that slow sales of their Surface tablets have saddled them with nearly a billion-Dollar loss.

The Surface RT was discounted last week following the revelation that most are still languishing in warehouses. Microsoft confirmed the "inventory adjustments" in a recent investor call, alongside their $900 million writedown. Share prices have dinged by 7%.

CVG reports that, of the four million Surface tablets produced, only a quarter have been sold.

"We know we must do better," Microsoft CFO Amy Hood said of the situation. "We are confident we are moving in the right direction."

Did you buy a Surface? Would you consider doing so, or waiting until the 2nd generation devices? Let us know in the comments.

Add a comment13 comments
GetsugaTenshoS  Jul. 19, 2013 at 14:14

I'd love a Surface but not at those prices and only the Pro as I don't want stuck with Windows RT.

DivideByZero  Jul. 19, 2013 at 15:31

Same... waiting for them to be £20 on ebay.

sparx1981  Jul. 19, 2013 at 15:49

was tempted when I saw the price drop as a replacement to my original ipad but seeing as this is a well known permanent drop and not a hot deal I guessed I could wait. On top of that, I'd much prefer a 16gb Xperia Z tablet for a little more than the 32gb Surface (noting that only about 16gb is available to the user)

Anarchist  Jul. 19, 2013 at 19:50

Is it just me, or does this site keep eating all my posts.

I'm sure I'm not going crazy and not forgetting to click submit, as I've never experienced this on any other forum, but I'm certain I've had at least three or four disappear in the last week...

Kopite211  Jul. 19, 2013 at 20:02

Ha!

Korma  Jul. 20, 2013 at 06:41

Good. The whole windows 8 style Metro UI was a big mistake and it's just one of many they've made by listening to their PR/Marketing/Monetisation 'gurus' as Lanning said in another article.

Their whole strategy seems to have been screw the consoles/desktops, they can make do with this ad delivery platform. We'll make so much money selling the tablets it won't even matter if we lose all our other customers. Look at the graphs!!

GetsugaTenshoS  Jul. 20, 2013 at 10:38

Good. The whole windows 8 style Metro UI was a big mistake and it's just one of many they've made by listening to their PR/Marketing/Monetisation 'gurus' as Lanning said in another article.


It doesn't sound like you've used Windows 8 at all. The desktop UI is better than Windows 7 and the start screen is far better than... a list of text. Metro is a great UI that most people aside from people too stubborn to accept change seem to like.

Windows 8 is the one thing MS are doing right at the moment.

Anarchist  Jul. 20, 2013 at 12:15

Good. The whole windows 8 style Metro UI was a big mistake and it's just one of many they've made by listening to their PR/Marketing/Monetisation 'gurus' as Lanning said in another article.


It doesn't sound like you've used Windows 8 at all. The desktop UI is better than Windows 7 and the start screen is far better than... a list of text. Metro is a great UI that most people aside from people too stubborn to accept change seem to like.

Windows 8 is the one thing MS are doing right at the moment.


LOL

I just typed out a four paragraph rant about windows 8. But then deleted it. It's nothing we've all not heard or experienced before.

The way Windows 8 works, is fundamentally broken to the way I use Windows, and have done for years. Keyboard heavy. If I were to swap, getting used to it or not, many, many things would take me far longer to do on 8. And I cannot afford that wasted time.

The core of it comes down to, in this last generation, Microsoft have given up trying to give customers what the customers want, and instead are giving customers what Microsoft want. This is true with Windows, this is true with Office, this is (was) true with Xbone. Unfortunately for them, they couldn't get away with it with the Xbone like they have with the others, because they don't hold a monopoly on the console market. As far as tablets go, they are just trying to copy Apples success. They don't have the premium image that Apple products come with though. And never will.

I'm not sure how many people you speak to about their preference, but I speak to dozens of different people every week, and I can only really think of two people who 'aren't too stubborn' to accept change. And they only said that windows 8, is 'ok'.

So, please let us know when you pass that book of Microsoft rhetoric you appear to have swallowed...!

Last edited by Anarchist, Jul. 20, 2013 at 12:16
GetsugaTenshoS  Jul. 20, 2013 at 12:55

LOL

I just typed out a four paragraph rant about windows 8. But then deleted it. It's nothing we've all not heard or experienced before.

The way Windows 8 works, is fundamentally broken to the way I use Windows, and have done for years. Keyboard heavy. If I were to swap, getting used to it or not, many, many things would take me far longer to do on 8.


I'd put up an argument here but it's really not worth it. All I'm going to say is with Windows 8 MS are trying to create a unified UI across their platforms that are much easier to use and they're succeeding there.

I'm really not sure what could be slowing you down with Windows 8, multitasking is far quicker.

So, please let us know when you pass that book of Microsoft rhetoric you appear to have swallowed...!


Shall do, I'll get right onto making sure I don't have my own opinions. We can't have that.

Anarchist  Jul. 20, 2013 at 13:25

I'd put up an argument here but it's really not worth it. All I'm going to say is with Windows 8 MS are trying to create a unified UI across their platforms that are much easier to use and they're succeeding there.

I'm really not sure what could be slowing you down with Windows 8, multitasking is far quicker.


I don't care about a unified UI. I want the best UI for the device that I'm using. I don't want a tablet UI on my Desktop. I want a desktop UI for my desktop. How is that hard to understand? I can understand how Metro works for tablets and phones, I really can. And I actually like it on those devices. But it is NOT a desktop friendly UI.

1) I don't want to use a MS phone, or a surface tablet. I want to use the windows desktop.

2) Ease of use means nothing to me. I'm CCNP, VCP, MCSE certified. This isn't meant to brag, but point out that I literally don't care about how easy it is to use - SPEED of use reigns supreme. That and I don't consider 8 to be any easier than 7. Many things take far more clicks to get to than in 7. I understand I'm not key demographic for Microsoft, but I don't consider most desktop users to be much different to me.

Multitasking is far quicker? Not at all. I find it much slower. 7 gave me all the multitasking options I need to be able to literally put time spent in the UI switching between tasks to reasonably put down as zero.

Last edited by Anarchist, Jul. 20, 2013 at 13:54
Korma  Jul. 20, 2013 at 14:25

Good. The whole windows 8 style Metro UI was a big mistake and it's just one of many they've made by listening to their PR/Marketing/Monetisation 'gurus' as Lanning said in another article.


It doesn't sound like you've used Windows 8 at all. The desktop UI is better than Windows 7 and the start screen is far better than... a list of text. Metro is a great UI that most people aside from people too stubborn to accept change seem to like.

Windows 8 is the one thing MS are doing right at the moment.


I don't think it's about not liking change. I was talking about the 'Windows 8 UI' or whatever they call it now since they had to stop using Metro. The Xbox 360 interface has become a terrible mess of adverts and slow navigation. Maybe they just intend everyone to buy a Kinect and use BING search to get everywhere on it. Windows 8 UI on that is a major contributing factor for me barely using it any more.

Most of my friends share similar dismay at being reluctant to even turn it on, knowing the pain it has become to use. The dashboard has been through many changes, and some have been better than others. They weren't shy about declaring that the Metro UI was THE BEST AND ONLY WAY TO NAVIGATE ANY DEVICE.

Likewise, I have only heard bad things from people I know who have tried/been forced to use it on desktops. Hardly an academic study, but that's what I have to inform my opinion. Also, it's backed up by a lot of what I've read of other people's experiences, professional tech writers and casual users alike.

It's clearly designed to be best used with a touch device. That's fine, if you plan on selling millions of touch devices and having others use it too. It's a joke, in the sense that if you have to sit down and explain to someone how it works, then it's not a very good one.

MattGardner  Jul. 22, 2013 at 11:40

Looking into the disappearing posts issue, apologies to those affected by this bug. Have put up a little feedback post to help the devs get an idea of as many details as possible.

http://www.dealspwn.com/disappearing-posts

Late  Jul. 22, 2013 at 15:26

Attempt eight...

Thanks for getting the geeks to look into this, Matt.
(Heh - gamers calling people geeks would raise an eyebrow amongst most folk, but I'm safe here..)


Yay - the post finally worked!


(I jest, of course.)

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