A revenue figure of $853 million was revealed by Microsoft for sales of its 1.7 million Surface RT tablets. It is less than the contemporary $900 million write-down for the selfsame device.
Surface RT sales were at 1.5 million in March. and now RT sales just reach 1.7 million units approximately. This is a much smaller figure than the 3 million iPads that Apple sold in November. The CEO had to admit to the staff at Microsoft that the company had built more than it could sell. The hard sell advertising tactics weren’t working. They even had to take the price of the Surface RT down by $150. GeekWire reported that Microsoft shows just $853 million revenue was earned by sale of Surface RT while the tech giant has to pay $900 million as RT inventory adjustments charge.
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A second generation tablet is in the pipeline though. For now though failure seems to be the state of Microsoft. And the defect is more than cosmetic. It needs a lot of technical healing to get back to the topmost spot. The expensive mistake it made has cost it quite a lot as regards its reputation and morale.
The fact that the advertising cost more than the revenues had flabbergasted the administration and staff at Microsoft. With the PC market in a slump, it seems there is little that can be achieved via the natural route. The market in alternative devices will have to be explored if there is to be any progress. That the Surface RT didn’t measure up to the media hype created to bolster it only goes to show that in today’s complex world unpredictability is an inescapable fact. With modest sales, the software giant has to pull its self together and literally smarten up.