MicrosoftMicrosoft reported fourth-quarter revenues Thursday that came in nearly a billion dollars less than what analysts expected, thanks to a
As dynamic, productive, and exciting has Microsoft has tried to make the Surface RT tablet out to be, consumers can’t shake the perception that it’s just a bland bit of overpriced plastic that can do little more than surf the Web.
Unfair? Maybe so. But as Wall Street digests that distasteful reality, so too should Microsoft’s marketing department. In fact, it’s eventually going to realize that as painful as the price cuts on the Surface RT have gone, they didn’t go nearly far enough.
Microsoft reported fourth-quarter revenues Thursday that came in nearly a billion dollars less than what analysts expected, thanks to a $900 million writedown of the Surface RT tablet. Amy “Red Riding” Hood, Microsoft’s new chief financial officer, was seemingly thrown to Wall Street’s wolves, as chief executive Steve Ballmer and other chief executives were absent from the call—unlike the packed house that accompanied the “One Microsoft” reorganization. To Hood’s credit, she dodged nimbly, scattering bland crumbs of data that the analysts meekly accepted.
It shouldn’t be too hard to figure out how many Surface RT tablets the writedown represented: $900 million divided by the per-unit price cuts—equating to $150 for each version of the Surface RT—will equal the number of Surface RT tablets sitting idle on Microsoft’s shelves, said Patrick Moorhead of Moor Insights and Strategy.
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Source: FULL ARTICLE at PCWorld


