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Now That’s a Flop

July 31st, 2013 - 7:47 am

How badly did the Microsoft Surface flop? This badly:

According to the report, Microsoft’s total Surface revenue for all of fiscal 2013 amounted to just $853m. That’s nearly $50m less than the $900m charge Redmond took when it discounted its remaining Surface RT inventory by $150 per box.

And that’s not all. That $900m writedown was related to Surface RT only, but the $853m revenue figure includes sales of Surface RT and Surface Pro combined.[Emphasis in original.]

If we assume an average selling price of $600 — which may be low given that the $100 keyboard accessory really isn’t optional — then Redmond sold fewer than 1.5 million tablets, RT and Pro, since last year’s launch.

Apple sold twice that many iPads in just 80 days after launch in 2010. And that was their slowest-selling first-generation model.

Ballmer needs to call do-over and start from scratch.

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All Comments   (12)
All Comments   (12)
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Good grief, you don't allow "W ang" as one word, a common Chinese surname. What the heck does the word mean now?
37 weeks ago
37 weeks ago Link To Comment
Anyone remember W ang, the mini-computer company? How about Digital Equipment (DEC)? The ash heap is getting mighty big.

37 weeks ago
37 weeks ago Link To Comment
Biggest floppers are those who bought Surface.
37 weeks ago
37 weeks ago Link To Comment
Microsoft finds itself in an interesting position.
MS owns the desktop & notebook. Desktop & notebook sales are flat.
Smartphone and tablet sales are growing, and even taking the place of the desktop & notebook in some uses.
MS is finding that its dominance in desktops & notebooks does not give it leverage in gaining smartphone & tablet market share.
Uh-oh.
Short MS, boys.
37 weeks ago
37 weeks ago Link To Comment
Considering how well MacBooks sell, I'm not sure they own the notebook, either.

They do own the bottom-feeder and gaming notebook segments, but there's not a lot of money in the former or volume in the latter...
37 weeks ago
37 weeks ago Link To Comment
MS also owns the corporate notebook market. There is a lot of money in that. Not to mention the corporate desktop market.

Probably explains why they're suicidally reluctant to produce something that may cannibalize Windows.
37 weeks ago
37 weeks ago Link To Comment
It really does suck to be Microsoft. Nobody expects an Ipad to run MSOffice. If you buy a windows tablet, you do expect it to run MSOffice. But MS can't make a tablet that runs MSOffice unless it's a tablet with a keyboard, aka, a 'notebook'.
MS wants in on tablets & smartphones 'cuz that's where the growth is at, but MS can't make money selling smartphones, tablets, or the apps & services that people use on smartphones & tablets.
37 weeks ago
37 weeks ago Link To Comment
But according to the really expensive, chic and trendy hip-hop ads during the movie trailers, it's a fantastic dance accessory.

I can't understand why something that's clearly Metrosexual is failing this badly.
37 weeks ago
37 weeks ago Link To Comment
What's killing me is that it used to be all the useful applications were for Windows of one flavor or another. Now all I read about are handy applications for iPads. Aviation flight maps, iPad. Health monitoring app, iPad. All the good jokes, about how Siri has messed up.
37 weeks ago
37 weeks ago Link To Comment
So it sold a tenth as fast as the iPad, give or take? That's actually a bit better than I expected. Can't say I've ever seen one Surface for every ten iPads.
37 weeks ago
37 weeks ago Link To Comment
No, it sold 10% as fast, give or take, as the original iPad in a MUCH smaller tablet market.
37 weeks ago
37 weeks ago Link To Comment
Oh, the original, back when everyone was asking "What the hell is this thing for?". Right, that's a king-sized flop then.
37 weeks ago
37 weeks ago Link To Comment
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