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Microsoft's Surface RT Was Doomed From Day One

Nerval's Lobster writes "Last fall, Microsoft launched its Surface RT tablet with high hopes. The sleek touch-screen ran Windows RT, a version of Windows 8 designed for hardware powered by the ARM architecture, which dominates the mobile-device market; it also included a flexible keyboard that doubled as a screen cover. Microsoft executives told any journalist who would listen that Surface RT would position their company as a major player in the tablet arena, ready to battle toe-to-toe with Apple and various Android device manufacturers. Fast-forward to this week, and Microsoft announcing its financial results for the quarter ended June 30. Amidst metrics such as operating income and diluted earnings per share, one number stood out: a $900 million charge (the equivalent of $0.07 per share) related to what Microsoft called 'Surface RT inventory adjustments.' Microsoft had already slashed Surface RT prices by $150, so that nearly-billion-dollar charge wasn't a total surprise — but it did underscore that Surface RT is a bomb. From the outset, Surface RT had an issue with the potential to mightily trip up Microsoft: While Windows RT looks exactly like Windows 8, it can't run legacy Windows programs built for x86 processors, limiting users to what they can download from the built-in Windows Store app hub. While the Windows Store launched with 10,000 apps, that seemed paltry in comparison to the well-developed Android and iOS ecosystems. There's likely nothing that Microsoft could have done about this—every platform has to start somewhere, after all—but the relative lack of apps put Surface RT between the proverbial rock and the hard place: it couldn't rely on Windows' extensive legacy, and it didn't have enough content to make it a true contender from the outset against the iPad and Android tablets. Then there was the matter of price. Microsoft could have taken the Amazon route and sold Surface RT at a relative pittance in order to drive adoption—something that made the Kindle Fire a sizable hit. However, that sort of pricing scheme isn't in Microsoft's corporate DNA: it only cut Surface RT's price several months after release, as a defensive maneuver, when it's likely to do much less good."

7 of 442 comments (clear)

  1. Doomed From Day One? by Anonymous Coward · · Score: 5, Funny

    At least that's they way it looks on the surface.

  2. good! by Thud457 · · Score: 5, Funny

    Those stupid ads with college students dressed up like what art school students think office workers dress like and ecstatically breakdancing around on tables to the clacky sound of attaching a bluetooth keyboard to a tablet just creeped me the fuck out. WTF MS, why don't you just put BillG & Seinfeld in your fail-mercials like you did back in the day? Or just give me the money if you're just going to flush it down the toilet.

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    the preceding comment is my own and in no way reflects the opinion of the Joint Chiefs of Staff

  3. Re:Slashdot... by Anonymous Coward · · Score: 2, Funny

    Not a dup. The first was a blurb from IT Times, this one appears to be a slashdot origininal, judging from the link.

    As to MS haters: How can you tell if someone hates Microsoft? Ask them if they've ever used MS software. If they say yes, they hate MS.

  4. Re:I'm glad by Linux+User+95 · · Score: 5, Funny

    What is this story even talking about? Surface RT was a massive success from the very beginning. I see people carrying Surface RT's daily and online comments have been very great. The only thing Microsoft failed with was that they manufactured just a tad too many of them. But overally Surface RT has been a great product and users are very happy with it. That's what ultimately counts.

  5. Re:Can we install Android? by scottbomb · · Score: 4, Funny

    I think this is what MS should have done in the first place. Make the damned thing capable of running Android applications. How hard can that be?

  6. Re:I'm glad by bryan1945 · · Score: 3, Funny

    Wow, you 'turfed so hard I have rug burn!

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    Vote monkeys into Congress. They are cheaper and more trustworthy.
  7. Re:I'm glad by doomsayerxero · · Score: 3, Funny

    You are being ridiculous...cause you forgot Amazon.

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    Don't screw up, don't throw up.