Wow. Just when you think the news can’t get much worse for Microsoft’s Surface RT tablet, it does. Yesterday TechCrunch reported that Microsoft has reported a huge writedown for unsold Surface RTs in its latest earnings report:
The company took a massive $900M writedown last quarter because of unsold Surface RT’s. Even more telling is that Microsoft actually revealed this loss. It’s that big. The company had to tell investors why it didn’t meet Wall Street’s expectations.
Just last week Microsoft slashed the prices of Surface RT models by nearly 1/3, and last month we saw that Microsoft tablets are almost invisible on the latest tablet web usage charts, with a less than 1% share; and that Surface tablets don’t even make it onto a chart showing the leaders in enterprise tablet activations.
Despite all of that, I’ve seen recent rumors that Microsoft will be releasing new Surface RT tablets early next year. They’ll need to be much lower-priced and have an operating system that’s not schizophrenic and downright painful to use, otherwise they might as well start planning for the next billion dollar writeoff.